{"id":53304,"date":"2025-09-06T18:55:50","date_gmt":"2025-09-06T13:25:50","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=53304"},"modified":"2025-09-06T18:56:09","modified_gmt":"2025-09-06T13:26:09","slug":"indias-expand-liberalise-nuclear-energy-sector","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/06-09-2025\/indias-expand-liberalise-nuclear-energy-sector","title":{"rendered":"Foreign Vendors Flag Quality Upgrade Gaps in Nuclear Sector"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Energy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The government is preparing <strong>two significant legal amendments<\/strong> aimed at <strong>opening up the civil nuclear energy domain to external players.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Amid this, the foreign equipment vendors<\/strong> have <strong>flagged the need for putting in place quality standards<\/strong> to upgrade the country\u2019s <strong>mid-and lower-tier nuclear supplier base.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns Raised by Foreign Equipment Vendors<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Quality gaps among mid- and lower-tier suppliers<\/strong>: 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&amp;T, Bharat Forge, Godrej &amp; Boyce and Walchandnagar Industries.<\/li>\n\n\n\n<li><strong>Need for standardized quality protocols and a national training program<\/strong>, especially for new reactor technologies like Light Water Reactors (LWRs) and Small Modular Reactors (SMRs).<\/li>\n\n\n\n<li><strong>Cybersecurity concerns,<\/strong> with vendors warning of risks such as loss of control over vital data, potential operational disruptions, or even ransomware-style hostage scenarios.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Nuclear Infrastructure<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India operates<strong> 22 nuclear reactors<\/strong>, all run by<strong> Nuclear Power Corporation of India Limited (NPCIL), with plans for more.<\/strong><\/li>\n\n\n\n<li>Despite signing civil nuclear agreements with the U.S., France, and Japan, <strong>only Russia is currently executing projects (Kudankulam),<\/strong> largely due to concerns around India\u2019s liability regime.\n<ul class=\"wp-block-list\">\n<li>Jaitapur Nuclear Plant (with France) has been pending since 2009, the liability concerns remain unresolved.<\/li>\n\n\n\n<li>Kovvada Project (Andhra Pradesh): Yet to proceed.<\/li>\n\n\n\n<li>Only Russia (Kudankulam) is implementing nuclear projects <strong>due to pre-CLNDA agreements.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India has a <strong>robust safety record under NPCIL operations<\/strong>, with no radiological accidents in 238 reactor-years.\n<ul class=\"wp-block-list\">\n<li>However, most of India\u2019s expertise is in <strong>Pressurized Heavy Water Reactors (PHWRs),<\/strong> which differ significantly from the globally prevalent LWR technology.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Reforms Underway in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Easing Nuclear Liability Law (Civil Liability for Nuclear Damage Act, 2010): <\/strong>Its objective is to<strong> <\/strong>limit the liability of equipment vendors in case of a nuclear accident. <strong>Key Proposed Changes:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Monetary Cap: <\/strong>Liability may be capped to the original contract value.<\/li>\n\n\n\n<li><strong>Time Limit:<\/strong> Introduce a statute of limitations for how long liability applies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Amendment to the Atomic Energy Act, 1962: <\/strong>Its objective is to allow private and foreign players to enter nuclear power generation.\n<ul class=\"wp-block-list\">\n<li><strong>Current Restriction:<\/strong> Only state-owned entities like NPCIL and NTPC Ltd can operate nuclear plants.<\/li>\n\n\n\n<li><strong>Proposed Change: <\/strong>Permit minority equity participation by foreign\/private entities in upcoming projects.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India\u2019s Push for Small Modular Reactors (SMRs): <\/strong>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.\n<ul class=\"wp-block-list\">\n<li><strong>The Bhabha Atomic Research Centre (BARC)<\/strong> is developing SMRs to phase out retiring coal plants and serve remote areas.<\/li>\n\n\n\n<li><strong>The Department of Atomic Energy <\/strong>is also exploring high-temperature gas-cooled reactors and molten salt reactors, tapping India\u2019s thorium reserves.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Nuclear Energy Mission for Viksit Bharat: <\/strong>A major initiative introduced as part of the budget, this mission includes R&amp;D for Small Modular Reactors (SMRs).\n<ul class=\"wp-block-list\">\n<li>\u20b920,000 crore has been allocated to ensure the development of at least five indigenously designed and operational SMRs by 2033.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Bharat Small Reactors (BSRs): <\/strong>These are 220 MW PHWRs being modernized to reduce land use and intended for industrial use (e.g., steel, aluminium plants).\n<ul class=\"wp-block-list\">\n<li><strong>The structure: <\/strong>private partners contribute land, water, and capital; NPCIL handles design, quality assurance, and operations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Private Players in Nuclear Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Nuclear Capacity:<\/strong> India plans to increase its nuclear power capacity to <strong>100 GW by 2047.\u00a0<\/strong><\/li>\n\n\n\n<li><strong>Energy Demand Growth:<\/strong> India&#8217;s electricity demand is expected to increase 4-5 times by 2047, and nuclear power will help meet base-load demand alongside renewables.<\/li>\n\n\n\n<li><strong>India\u2019s Targets:<\/strong> To reduce the emission intensity of its GDP by 44% by 2030 from the 2005 level.\n<ul class=\"wp-block-list\">\n<li>To achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Global Templates for Quality Upgrades in Nuclear Sector<\/strong><br>&#8211; <strong>Japan\u2019s Experience (1970s\u20131980s):<\/strong><br>1. <strong>National Push:<\/strong> After declaring nuclear energy a national strategic priority in 1973, Japan expanded its nuclear power programme.<br>2. <strong>Parallel Quality Movement:<\/strong> This coincided with a broader industrial quality revolution in Japan. Companies like Toyota and Sony became global benchmarks of reliability and quality.<br>3. <strong>International Influence:<\/strong> The IAEA (International Atomic Energy Agency) published \u201cQuality Assurance for Nuclear Power Plants: A Code of Practice\u201d in 1978, providing detailed safety and quality standards.<br>4. <strong>Impact: <\/strong>Japan\u2019s regulators adopted these principles, embedding quality assurance into both industrial culture and nuclear regulation.<br>&#8211; <strong>China\u2019s Approach (2000s onwards)<\/strong><br>1. <strong>Regulatory Institution:<\/strong> The National Nuclear Safety Administration (NNSA) became the central authority to oversee nuclear safety and quality.<br>2. <strong>Programme Characteristics:<\/strong><br>(a). Comprehensive national quality assurance programme.<br>(b). Framework aligned with international standards but adapted to domestic conditions.<br>(c). Standardisation of manufacturing processes across all nuclear suppliers.<br>3. <strong>Outcome:<\/strong> Helped China expand its nuclear sector rapidly while building a globally competitive supply chain.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>National Training Programme: <\/strong>Suggested for equipment suppliers, especially mid- and lower-tier vendors.\n<ul class=\"wp-block-list\">\n<li>Focus on new technologies like Light Water Reactors (LWRs) and Small Modular Reactors (SMRs).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Role of DAE: <\/strong>Needs to enforce strict codes and standards across all systems and equipment.\n<ul class=\"wp-block-list\">\n<li>Must institutionalise a culture of rigorous quality inspection and management.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Professional Expertise: <\/strong>Build a cadre of highly qualified professionals capable of timely decision-making in inspection, certification, and quality control.<\/li>\n\n\n\n<li><strong>Expanding Vendor Capacity: <\/strong>Invest in new vendors and expand manufacturing capacity in these specialised areas.\n<ul class=\"wp-block-list\">\n<li>Encourage public\u2013private partnerships and technology tie-ups to speed up capability development.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Without supplier training, quality upgrades, and expanded capacity, India risks:\n<ul class=\"wp-block-list\">\n<li>Delays in reactor construction.<\/li>\n\n\n\n<li>Cost overruns due to late detection of quality issues.<\/li>\n\n\n\n<li>Loss of credibility in international collaborations.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>With reforms, India can build a globally competitive nuclear supply chain and become a major player in the SMR market.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/as-india-readies-legal-tweaks-to-open-up-nuclear-sector-foreign-vendors-flag-quality-upgrade-gaps-in-domestic-supplier-base-10232997\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">The government is preparing two significant legal amendments aimed at opening up the civil nuclear energy domain to external players.\u00a0<\/li>\n<p><\/p>\n<h3><strong>Concerns Raised by Foreign Equipment Vendors<\/strong><\/h3>\n<li class=\"ms-5\">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&#038;T, Bharat Forge, Godrej &#038; Boyce and Walchandnagar Industries.<\/li>\n<li class=\"ms-5\">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).<\/li>\n<li class=\"ms-5\">Cybersecurity concerns, with vendors warning of risks such as loss of control over vital data, potential operational disruptions, or even ransomware-style hostage scenarios.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/06-09-2025\/indias-expand-liberalise-nuclear-energy-sector\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-53304","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=53304"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53304\/revisions"}],"predecessor-version":[{"id":53330,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53304\/revisions\/53330"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=53304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=53304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=53304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}