India will allow private companies to mine uranium and import it to aid nuclear expansion

Two government sources have confirmed that India wants to allow private companies to mine, import, and process uranium. This is part of a plan to end the decades-old monopoly of the state over the nuclear industry and to bring in billions to boost the sector. The government of Prime Minister Narendra Modi plans to increase nuclear power production by 12 times before 2047. It is also relaxing the requirements for foreign players to be able to own a minor stake in power stations, according to reports in April.

According to estimates by the government, if India meets its nuclear expansion goals, it will be able to meet 5% of India’s total energy needs.

The state had until now maintained control over the mining of uranium, its importation and processing because it was concerned about the potential misuse of nuclear materials, radiation safety, and strategic security.

In line with international practice, it will continue to reprocess spent uranium and manage plutonium. The government wants to create a regulatory framework to allow Indian companies to mine, process and import uranium to meet the growing demand.

The plans have not yet been made public, so they asked to remain anonymous.

Sources said that the proposed policy would likely be published in the current fiscal period and will allow private companies to provide critical control systems for nuclear power plants.

The Finance Ministry, Department of Atomic Energy, and Prime Minister's Office have not responded to requests for comments.

Canada, South Africa, and the United States are countries that allow private companies to mine uranium outside India.

DOMESTIC SUPPLY NOT ENOUGH

According to data from the government, India has 76,000 tonnes of estimated uranium that could power 10,000 megawatts for 30 years.

Sources said that domestic resources could only cover about 25% of projected growth. The remainder would need to be imported, and India would have to increase its capacity for processing.

The government announced its plans for the opening of the sector in its budget announcement on 1 February, without providing any details. The big conglomerates in India then began to draw up investment plans.

Analysts said that amending the law could be complicated. Charudatta Palekar is an independent consultant in the power sector. She said that the Indian Government's bold and major initiative was crucial for reaching the target.

The challenge is to quickly define the rules of engagement between private sector and government.

Sources said that New Delhi would have to amend five laws including those governing the mining and electricity sector and India's Foreign Direct Investment Policy to allow private participation in many activities. (Reporting and editing by Barbara Lewis: Sarita Chaganti-Singh)

(source: Reuters)