SBI Capital Report Calls For Policy Reforms To Unlock Private Investment In Nuclear Sector

New Delhi, May 6 (KNN) India’s ambitious plan to achieve 100 GW of nuclear power capacity by 2047 has attracted substantial interest from the private sector.

However, according to a recent SBI Capital Market (SBICAPS) report, existing policy gaps must be addressed promptly to ensure private companies can contribute at least 50 percent of this target.

The report highlights that opportunities extend beyond project development to encompass the entire nuclear power ecosystem.

This includes reactor manufacturers, turbine and generator suppliers, precision control and equipment providers, and cooling system specialists. 

While the potential is evident, the implementation of appropriate policy mechanisms remains the critical factor in mobilising the sector.

A significant government initiative, the Bharatiya Saksham Reactor (BSR) program, now permits private sector development of Pressurised Heavy Water Reactors for captive use. 

The program incorporates stringent entry criteria to ensure that participation is limited to serious and capable entities, thereby mitigating implementation and funding risks. 

Additionally, the captive use model strengthens the program by reducing demand uncertainty.

Despite these positive developments, the BSR program requires further refinements to achieve optimal effectiveness. 

Current approval processes follow a sequential pathway that is excessively time-consuming, while private companies continue to bear disproportionate risk across various development stages.

The report specifically recommends including a compensation clause to protect private entities in cases where the Department of Atomic Energy fails to provide sufficient fuel and heavy water. 

It also calls for transparent pricing mechanisms and clear guidelines regarding the allocation of additional costs, such as those related to power transmission.

Additional suggested improvements include incentives for state governments to expedite project approvals, enhanced force majeure and termination clauses to bolster investor confidence, and sovereign support alongside tax liability waivers when plants are transferred to the Nuclear Power Corporation of India Limited (NPCIL).

(KNN Bureau)