Establish robust financial model to attract private players in nuclear sector: Panel

A parliamentary standing committee recommended establishing a robust financial model that includes government incentives, viability gap funding (VGF), and sovereign guarantees to attract both domestic and foreign investments in the nuclear power sector. 

The parliamentary panel, in its report on Tuesday, noted that the Indian government has set a nuclear power target of 100GW by 2047 with nearly 50% of the capacity is expected to come from private players.  

The committee acknowledged that achieving 100 GW of nuclear capacity by 2047 requires a structured and phased approach and instead of focusing solely on a long-term 100 GW target, there should be phased capacity additions, with clear short-term (2030), medium-term (2040), and long-term (2047) milestones.

The panel recommended that 2031-32 projection of 22.48 GW should serve as a baseline, with subsequent capacity additions planned in alignment with investment inflows, policy reforms, and domestic manufacturing capabilities. Presently, India’s nuclear capacity stands at 8.8 GW.

“The legislative amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act should be expedited to encourage private investment in nuclear power generation,” it said.

Emphasising the importance of Small Modular Reactors (SMRs) and Bharat Small Reactors (BSRs) in achieving the 100 GW target, it recommended that SMRs and BSRs should be deployed in remote regions and industrial zones to support decentralised energy generation.

“The Committee supports Department of Atomic Energy’s initiative to attract private investment. However, the Committee recommends that clear regulatory frameworks and risk mitigation strategies should be developed to ensure private sector participation in the critical and sensitive nuclear infrastructure projects,” the report further noted.