Pvt sector should focus on manufacture N equipment: Kakodkar

Mumbai, Jun 7 (PTI) With FICCI batting for amendments
to the Atomic Energy Act for allowing private sector to set up
nuclear power plants in the country, atomic energy chief Anil
Kakodkar has said the Indian industry should first concentrate
on manufacturing of equipments to become a major N-supply
chain provider and later even exporter.

"Instead of jumping first for utilities (power plants),
the new private entrants to the nuclear industry should grab
the opportunity and maximise India's advantage in manufacture
of nuclear equipments and components," Kakodkar, Chairman of
Atomic Energy Commission, told PTI while reacting to a report
submitted by a FICCI working group on civil nuclear energy
issues last week.

"This is not the time to look at the Atomic Energy Act
(which is required mainly for Indian industries to take up
utilities) but instead try and build up the supply chain and
prepare for export to the neighbouring countries making
India a nuclear hub of manufacturing and a supply chain,"
Kakodkar said.

He said he had told the chambers "that they have to
correct their priorities and take up manufacturing of parts
first and then export markets and later then after few years
the utilities."

FICCI had constituted a working group on civil nuclear
energy under the chairmanship of S K Jain, CMD of state-run
Nuclear Power Corporation of India Ltd (NPCIL) with members
representing companies who are looking to engage in doing
business in the Indian Nuclear sector.

"Smaller sub-groups were constituted to individually to
look into issues concerning utilities, manufacturing and
export markets," Amit Mitra, Secretary, FICCI said.

Kakodkar said the industries can join NPCIL to
familiarise themselves with the high work and safety culture
which are mandatory for the N-industry.

"The utilities are simple power plants but there are
security, fuel cycle and safety culture issues and these
cannot be done overnight. It takes time and very highly
dedicated people are required for handling such hi-tech
industry," he said.

He also asked how much experience these industries who
wanted to take up nuclear power had in running thermal power
plants?

Jain said the Department of Atomic Energy has made it
clear to the industry that manufacturing should be first
priority for Indian industries to take advantage of this
global civil nuclear cooperation.

Foreign direct Investment is more than welcome but at the
same time the priority on utilities should be the third in
number. The industry had to go step by step and have to
achieve institutional strength, Jain said

In addition to developing the core strength over a period
of time, the industry also should be ready to participate in
regulatory procedures which will not allow such kind of
flexibilities as they have in private sector like sudden
Acquisition and Mergers (A&M), folding up the industry if it
is found to be non-profitable and so on.

"All these things are strictly not available in the
nuclear industry unlike the conventional ones," Jain said.

Industries seeking to move ahead with the country's civil
nuclear expansion should come together to evolve a mechanism
for regulation.

Mitra had pointed out that the purpose of the report was
to suggest the required legislative and policy interventions
for an accelerated participation of the private sector, with a
well defined qualification criterion so that only serious
players participate in this strategic sector.

"We hope that the report, first of the series, will be
useful to policy makers, thinkers and Indian industry, as a
suggested approach to the opening of the civil nuclear
sector in India, particularly as they deal with issues of
security and employment potential," Mitra said.

"The second report on issues in manufacturing will be
submitted to the government soon," he said. PTI LV
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