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India's ambitious plan to achieve 100 GW of nuclear power capacity by 2047 has begun to draw strong interest from the private sector but to ensure that it contributes to at least 50 per cent of this target, existing policy gaps need to be addressed quickly, according to a report by SBI Capital Market.
The report also mentioned that the opportunity is not limited to just project development. A wide range of companies can benefit across the nuclear power ecosystem. It said "Addressing existing policy gaps is crucial to ensure that the private sector leads the development of 50 per cent of the targeted 100 GW nuclear capacity by 2047". This includes reactor manufacturers, turbine and generator suppliers, precision control and equipment providers, and specialists in cooling systems. The potential is clear--what remains uncertain is whether the right policy "triggers" will be introduced to set the sector in motion. The government has taken an important step by launching the BSR (Bharatiya Saksham Reactor) program. This allows the private sector to develop Pressurised Heavy Water Reactors (PHWRs) for captive use. The report added that the program comes with strict entry criteria to ensure that only serious and capable players participate, which also helps reduce risks related to implementation and funding. The captive use model is another positive aspect, as it reduces demand uncertainty. Despite these encouraging steps, more needs to be done to make the BSR program fully effective. Currently, the approval process is too long and follows a sequential path, slowing down progress. In addition, the risk burden on private companies remains high at various stages of development. The report stated that a critical improvement would be the inclusion of a compensation clause to protect private players if the Department of Atomic Energy fails to supply adequate fuel and heavy water. Transparent pricing mechanisms are also necessary. Moreover, there should be clear guidelines on the allocation of extra costs, such as those related to power transmission. Incentives for state governments to approve such projects would help speed up approvals. Better force majeure and termination clauses would give more security to investors. Lastly, offering sovereign support and tax liability waivers when the plant is transferred to NPCIL could improve the program's overall success. As per report, with the right policy changes and support mechanisms, India's nuclear sector could see a powerful reaction--driven by private sector energy. (ANI)
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