India rules out FDI in nuke plants

New Delhi, Aug 19 (PTI) India's atomic energy chief
Dr Anil Kakodkar has ruled out Foreign Direct Investment (FDI)
in the nuclear power plants but said there are no restrictions
for the private sector to carry out manufacturing of nuke
equipment and construction.

"FDI in Indian nuclear power plants is not envisaged,"
said Kakodkar, the Chairman of the Atomic energy Commission
(AEC), when asked if there are any plans in this regard after
India came out of its 34-year nuclear isolation.

Kakodkar's comments came close on the heels of Economic
Survey making a pitch for greater private participation even
in the sensitive sector of nuclear power generation. The
Survey called for allowing up to 49 per cent FDI in nuclear
power and amending the Atomic Energy Act to allow private
companies in the sector.

In an interview to Asian Nuclear Energy, a portal
dedicated to nuclear commerce, he said India's capability to
independently design and build thorium-based Fast Breeder
Reactors (FBRs) will make the country a global technological
leader in this crucial area in the future.

The small-sized Pressurized Heavy Water Reactors (PHWRs),
which this country is capable of building, have considerable
demand in developing nations, said Kakodkar, who is also
Secretary, Department of Atomic Energy (DAE).

Nuclear commerce in India has always been legitimate, he
said, adding, India is well known for its responsible
behaviour in conducting its nuclear business.

Kakodkar also said negotiations are already in progress
with vendors from France, Russia and USA for setting up
nuclear parks in different States across the country, each
expected to provide for six to eight reactors of 1,000-1,650
MW.

India's three-stage nuclear energy programme comprises
building uranium-fuelled Pressurized Heavy Water Reactors
(PHWRs), development of Fast Breeder Reactor (FBRs) and an
advanced nuclear power system based on Thorium-Uranium-fuelled
reactors.

"With nuclear energy likely to become centre stage, FBRs
are expected to be in considerable demand in future. With
India having taken the lead in this crucial area, we could
very well be the technological leaders worldwide," Kakodkar
said, adding the same thing could happen in the context of
thorium systems a little later.

Kakodkar also believed that India's nuclear power
generation programme, which offers immense potential for
technology and equipment suppliers from across the globe
through joint ventures will result in an additional installed
nuclear power capacity of 40,000 MW by 2020.

India has 17 operating nuclear power reactors and plans
to increase the current capacity of 4120 MW to 10,000 MW by
2012.

He also stressed that Indian companies must maintain
their technological competence and ability to tap emerging
markets.

"In so doing they should not allow themselves to be
subjected to extraterritorial application of foreign laws that
restrict their participation in the domestic development of
India's three-stage nuclear power programme which is the key
to opening up of very large potential of nuclear power,"
Kakodkar cautioned. PTI