India considers foreign investment in N-power

India is considering overturning a ban on foreign investment in its nuclear power industry and allowing greater participation by domestic private firms, two government sources told Reuters, as part of a push for cleaner energy.

The measures have been recommended by a government panel, set up by think-tank Niti Aayog which is headed by Prime Minister Narendra Modi.

Under India’s Atomic Energy Act 1962, the government plays a central role in developing and running nuclear power stations. Domestic private companies are allowed to participate as “junior equity partners” by supplying components and helping build them.

The panel has recommended changes to the act and to India’s foreign investment policies so that both domestic and foreign private companies can complement nuclear power generation by public companies.

The Department of Atomic Energy had earlier informed that foreign companies were interested in the country’s nuclear power operations as technology partners, suppliers, contractors and service providers. These interested foreign companies included Westinghouse Electric, GE-Hitachi, Electricite de France and Rosatom.

India does not allow foreign investment in the field of nuclear energy. Officials said that special emphasis is being laid on ‘Small Modular Reactor’ (SRM) for fast nuclear power generation with private participation.

Nuclear power accounts for only 3 per cent of the total electricity generation in India, while coal-fired power accounts for three-fourths.