Foreign Vendors Flag Quality Upgrade Gaps in Nuclear Sector

Syllabus: GS3/Energy

Context

• The government is preparing two significant legal amendments aimed at opening up the civil nuclear energy domain to external players. 
  • Amid this, the foreign equipment vendors have flagged the need for putting in place quality standards to upgrade the country’s mid-and lower-tier nuclear supplier base.

Concerns Raised by Foreign Equipment Vendors

• Quality gaps among mid- and lower-tier suppliers: This gap has been specifically flagged in the second and third rung of equipment suppliers that, in turn, provide inputs to the tier-1 suppliers such as L&T, Bharat Forge, Godrej & Boyce and Walchandnagar Industries.
• Need for standardized quality protocols and a national training program, especially for new reactor technologies like Light Water Reactors (LWRs) and Small Modular Reactors (SMRs).
• Cybersecurity concerns, with vendors warning of risks such as loss of control over vital data, potential operational disruptions, or even ransomware-style hostage scenarios.

India’s Nuclear Infrastructure

• India operates 22 nuclear reactors, all run by Nuclear Power Corporation of India Limited (NPCIL), with plans for more.
• Despite signing civil nuclear agreements with the U.S., France, and Japan, only Russia is currently executing projects (Kudankulam), largely due to concerns around India’s liability regime.
  • Jaitapur Nuclear Plant (with France) has been pending since 2009, the liability concerns remain unresolved.
  • Kovvada Project (Andhra Pradesh): Yet to proceed.
  • Only Russia (Kudankulam) is implementing nuclear projects due to pre-CLNDA agreements.
• India has a robust safety record under NPCIL operations, with no radiological accidents in 238 reactor-years.
  • However, most of India’s expertise is in Pressurized Heavy Water Reactors (PHWRs), which differ significantly from the globally prevalent LWR technology. 

Reforms Underway in India

• Easing Nuclear Liability Law (Civil Liability for Nuclear Damage Act, 2010): Its objective is to limit the liability of equipment vendors in case of a nuclear accident. Key Proposed Changes:
  • Monetary Cap: Liability may be capped to the original contract value.
  • Time Limit: Introduce a statute of limitations for how long liability applies.
• Amendment to the Atomic Energy Act, 1962: Its objective is to allow private and foreign players to enter nuclear power generation.
  • Current Restriction: Only state-owned entities like NPCIL and NTPC Ltd can operate nuclear plants.
  • Proposed Change: Permit minority equity participation by foreign/private entities in upcoming projects.
• India’s Push for Small Modular Reactors (SMRs): SMRs are advanced nuclear reactors with ~1/3rd the generating capacity of conventional nuclear plants, but still capable of producing large amounts of low-carbon electricity.
  • The Bhabha Atomic Research Centre (BARC) is developing SMRs to phase out retiring coal plants and serve remote areas.
  • The Department of Atomic Energy is also exploring high-temperature gas-cooled reactors and molten salt reactors, tapping India’s thorium reserves.
• Nuclear Energy Mission for Viksit Bharat: A major initiative introduced as part of the budget, this mission includes R&D for Small Modular Reactors (SMRs).
  • ₹20,000 crore has been allocated to ensure the development of at least five indigenously designed and operational SMRs by 2033.
• Bharat Small Reactors (BSRs): These are 220 MW PHWRs being modernized to reduce land use and intended for industrial use (e.g., steel, aluminium plants).
  • The structure: private partners contribute land, water, and capital; NPCIL handles design, quality assurance, and operations.

Need for Private Players in Nuclear Sector

• Nuclear Capacity: India plans to increase its nuclear power capacity to 100 GW by 2047. 
• Energy Demand Growth: India’s electricity demand is expected to increase 4-5 times by 2047, and nuclear power will help meet base-load demand alongside renewables.
• India’s Targets: To reduce the emission intensity of its GDP by 44% by 2030 from the 2005 level.
  • To achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

Way Ahead

• National Training Programme: Suggested for equipment suppliers, especially mid- and lower-tier vendors.
  • Focus on new technologies like Light Water Reactors (LWRs) and Small Modular Reactors (SMRs).
• Role of DAE: Needs to enforce strict codes and standards across all systems and equipment.
  • Must institutionalise a culture of rigorous quality inspection and management.
• Professional Expertise: Build a cadre of highly qualified professionals capable of timely decision-making in inspection, certification, and quality control.
• Expanding Vendor Capacity: Invest in new vendors and expand manufacturing capacity in these specialised areas.
  • Encourage public–private partnerships and technology tie-ups to speed up capability development.

Conclusion

• Without supplier training, quality upgrades, and expanded capacity, India risks:
  • Delays in reactor construction.
  • Cost overruns due to late detection of quality issues.
  • Loss of credibility in international collaborations.
• With reforms, India can build a globally competitive nuclear supply chain and become a major player in the SMR market.

Source: IE