N-energy Bill likely to open space for foreign funding

NEED FOR BASELOAD ALTERNATIVES, HUNT FOR CAPITAL

- LIZ MATHEW & ANIL SASI

BUILDING ON THE clear directional push to open up the restricted nuclear power sector to private sector participation, the rules that will follow the passage of the proposed Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI) are likely to make a provision for potential foreign funding in the nuclear sector.

The new Bill, which was tabled in Parliament on Monday and aims to repeal both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, comes amid India's move to look outward for collaborations on nuclear that is driven by two clear policy imperatives: the desperate need for base load alternatives to coal-fired capacity to tide over the limitations of renewables; and more importantly, the need for capital to scale up nuclear capacity addition.

Foreign funds, including sovereign funds from West Asia, have expressed early interest to put in capital to part-finance the country's stated objectives to scale up nuclear power, including getting into the manufacturing value chain of SMRs, or small modular reactors.