India opens its nuclear sector to proven technology from abroad

India proposed on Friday a 'tightly supervised approval regime' for private nuclear energy generation. This would open the door to proven foreign reactor technologies.

The draft rules and regulations provided the most clear picture of New Delhi's intentions to open up a sector that is heavily guarded to foreign and private investors while maintaining control over entry and operation, in line with international nuclear markets.

According to draft rules under the "nuclear power act", companies would receive approval in principle before engaging vendors, undertaking preliminary development work?and securing land.

Once projects are licensed, they will be subject to regulatory scrutiny at each stage, including design, installation, construction, commissioning, and operation. The draft regulations include powers to regulate, including the ability for regulators to stop work at key project stages.

India's nuclear sector has been largely controlled by the state for decades, with access to foreign fuels and technology being restricted after the 1974 nuclear test explosion that triggered international sanctions.

The country amended its nuclear energy law last year to allow private companies the opportunity to build and run projects while still maintaining control over licensing, strategic nuclear materials, and nuclear weapons.

Private investment and foreign technology are critical in order to meet the ambitions of the world's third largest greenhouse gas emitter.

Reports earlier stated that India invited domestic private conglomerates, including Adani Green and Tata Power to invest in nuclear power.

The nuclear energy act was amended to include a cap on the liability of suppliers for accidents involving nuclear equipment, which has been a concern for many years. The move was made to rekindle interest among foreign vendors, such as General Electric, Westinghouse Electric, and EDF.

The draft regulations circulated for consultation allow reactor designs that have established overseas 'operating records', and require developers to submit licensing?and operating experience?in their home markets.

The nuclear power developers will be required to submit plans for the management of radioactive waste, as well as financial security in order to meet their obligations for decommissioning, waste-management, and liability. Reporting by Sarita Changanti Singh, Editing by Alison Williams & Cynthia Osterman

(source: Reuters)