Question : PRIVATE INVESTMENT IN NUCLEAR POWER SECTOR

(a) whether the Prime Minister`s economic advisory panel has suggested that nuclear power sector should be opened to private investments which would help the power-starved economy to grow on a sustained basis;

(b) if so, the details thereof;

(c) whether the panel has also pointed out that there is an urgent need to make regulatory changes so that investment including from established private companies interested in the business can begin to flow;

(d) if so, the details thereof and the suggestions recommended by the panel and the reaction of the Government thereto; and

(e) the steps taken or being taken by the Government in this regard?

THE MINISTER OF STATE FOR SCIENCE & TECHNOLOGY AND EARTH SCIENCES (INDEPENDENT CHARGE), PMO, PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND PARLIAMENTARY AFFAIRS. (SHRI PRITHVIRAJ CHAVAN):

(a) & (b) Yes, Sir. The Economic Advisory Council to the Prime Minister in its “Economic Outlook for 2009-10” of October 2009 and in the “Review of the Economy 2009-10” of February, 2010 has recommended private sector participation in nuclear power sector.

(c) Yes, Sir. The Council has recommended amendment of the Atomic Energy Act, 1962 so as to permit the entry of reputable private companies in the nuclear power sector.

(d) & (e) The Atomic Energy Act, 1962 gives power to Central Government to produce, develop, use and dispose of atomic energy either by itself or through any authority or corporation established by it or a Government company in which not less than 51% of the paid up share capital is held by the Central Government. At present Indian private sector can participate in nuclear power generation projects as a minority partner. For the present participation of Indian private sector in nuclear power generation projects will continue to be as per the existing provisions of Atomic Energy Act, 1962.

Amendments to Atomic Energy Act has to be done in a careful manner after a detailed examination of all issues, including nuclear safety, physical security and international commitments.