New Delhi: Growing demand for energy in the country seems to be feeding the private sector's hunger for nuclear power. Not only have corporates stepped up lobbying with the government for opening up of nuclear power generation to private play, but also started putting key personnel in place, in anticipation.
GMR, for one, has hired senior officials like G R Srinivasan and O P Goel from the Nuclear Power Corp of India (NPC). Tata Power, too, is learnt tobe consulting a senior ex-NPC official to firm up its nuclear power generation plans.
Over the past eight months or so, industry has made several representations to the government for an amendment in the Atomic Energy Act 1932, which only allows state-owned entities (read NPC) to engage in nuclear power generation activity due to security issues.
The Federation of Indian Chambers of Commerce and Industry (Ficci) has constituted a working group on civil nuclear energy under the chairmanship of S K Jain, CMD, NPC.
"We are trying to convince the government that Indian power sector is mature enough to participate in nuclear power generation on its own," said Vivek Pandit, director, Ficci.
According to Pandit, the kind of investment needed for nuclear power generation cannot be met without allowing the private sector to participate. Going by estimates, around Rs 10 crore is required to produce 1 mw of nuclear power.
Another industry chamber, Assocham, has also recently made a representation to the government, asking for opening up of the nuclear power sector. According to Assocham, corporates like the Tata group, North East Power Co, JSW, Jaiprakash Associates,
Reliance and Lanco are ready with their nuclear energy diversification drive and awaiting amendment of the proposed Act.
"The private players are lobbying hard to get a share in the pie of nuclear power sector. Even though the government seems reluctant today, we hope to convince them at some stage," said a senior official of one of India's largest private power generators. The players say they are aware of the issues involved and ready to deal with them.
"We are a mature corporation and understand the security issues involved in the nuclear sector and are confident to deal with these appropriately. If the government allows, we could work for developing a 1,000 mw nuclear power plant," Raaj Kumar, CEO-energy business of GMR Infrastructure, said.
A section within the government is also in favour of allowing the private sector into nuclear power generation. Indeed, the Economic Survey of India earlier this year and the Economic Outlook for 2009-10 presented by the Prime Minister's Economic Advisory Council recently have both recommended opening up of the sector.India has six nuclear powerplants, all operated by NPC, witha combined installed capacity of4,120 mw, which accounts for 2.7% of the country's total installed capacity of 1,52,360 mw.


