The Indian Government is preparing to end a long-standing state monopoly over its nuclear sector by allowing private companies to mine, import and process uranium, reported Reuters, citing government sources.
This strategic move is aimed at supporting the country’s ambitious plan to increase nuclear power production capacity twelvefold by 2047, which would account for 5% of India’s total power needs.
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Until now, the state has exclusively controlled uranium mining, imports and processing due to concerns over nuclear material misuse, radiation safety and strategic security.
However, the government will maintain control over the reprocessing of spent uranium fuel and managing plutonium waste, aligning with global practices.
To address the anticipated surge in nuclear fuel demand, the government is developing a regulatory framework to permit private Indian companies to engage in the uranium sector.
The policy is expected to be made public within the current fiscal year and will also allow private entities to supply critical control system equipment for nuclear power plants.
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By GlobalDataIndia’s estimated uranium reserves of 76,000 tonnes (t) could fuel 10,000 megawatts (MW) of nuclear power for 30 years, according to government data.
However, domestic resources are projected to meet only around 25% of the increased demand, necessitating imports and an expansion of processing capabilities.
While announcing the budget earlier this year, the government revealed its plans to open the sector, without providing detailed information. This reportedly prompted major Indian conglomerates to start formulating investment plans.
To facilitate private participation, New Delhi is required need to amend five laws, including those governing mining, electricity sectors and foreign direct investment policies.
Last month, India unveiled a strategic plan to incentivise foreign companies to establish smelters and refineries, aiming to boost copper production and reduce import dependency by 2047.
This includes incentives for state-owned Indian companies to invest in the mining operations of foreign entities.
