In the recent past, there has
been substantial developments in exploring the potential of Small Modular
Nuclear reactors (SMR) in India. NITI Aayog came up with a detailed publication
in May 2023 about SMRs in India titled "The Role of Small Modular Reactors in the Energy Transition" (download the study from here).
The first and the most important
regulatory stumbling block is the Atomic Energy Act, 1962, which prohibits the
private sector from commissioning nuclear reactors. Section 14(1) of the 1962
Act states:
“(1) The Central Government
may, subject to such rules as may be made in this behalf, by order prohibit
except under a licence granted by it—
(i) the working of any mine or
minerals specified in the order, being a mine or minerals from which in the
opinion of the Central Government any of the prescribed substances can be
obtained;
(ii) the acquisition,
production, possession, use, disposal, export or import—
(a) of any of the prescribed
substances; or
(b) of any minerals or other
substances specified in the rules, from which in the opinion of the Central
Government any of the prescribed substances can be obtained; or
(c) of any plant designed or
adopted or manufactured for the production, development and use of atomic
energy or for research into matters connected therewith; or
(d) of any prescribed
equipment.”
A perusal of Section 14(1)(ii)(c)
seems to suggest that the Central Government could grant licence for the
acquisition, production, possession, use, disposal, export or import of any of
any plant designed or adopted or manufactured for the production, development
and use of atomic energy or for research. But this provision has to be read
together with Section 14(1A), which states:
“[(1A) No licence under
sub-clause (c) of clause (ii) of sub-section (1) shall be granted to a person other
than a Department of the Central Government or any authority or an institution
or a corporation established by the Central Government, or a Government company.”
In other words, the Central
Government is barred from granting a licence to a person other than a Central
Government entity for this purpose.
NITI Aayog has recommended in its
Report:
“With the advent of clean
energy transition, there has been a great thrust towards adopting cleaner
energy options to move towards the net zero emissions scenario by the
respective countries. Many nations have already declared their net zero
emissions targets. Apart from Renewable Energy (RE), nuclear is also being
explored as a clean energy option to help the nations in achieving their
decarbonization goals…" (p. 2)
SMR industry needs to find its
way through early challenges of technology demonstration, special material availability,
special manufacturing techniques, project funding requirements and regulatory
harmonization. Given such challenges and the need to grow SMR industry for
achieving long-term Net-zero goals, it is essential to establish SMR ecosystem.” (p. 5).
About fifteen years back, there were news reports that India would open up nuclear energy for private participation in producing nuclear power. See, for example, here. Somehow, that did not happen. See, here.
But for these to happen now as envisaged in the NITI Aayog report, the first step would be to amend these provisions to allow participation of private players in SMRs.
