Private Sector Entry into Nuclear Power after SHANTI Act

Context:
The Adani Group has entered India’s nuclear energy sector following the passage of the SHANTI Act, which replaces the earlier Atomic Energy Act and allows private companies to operate nuclear power plants.

Key Highlights:

Entry of Adani Group into Nuclear Energy
Adani Power Limited (APL) has created a wholly owned subsidiary named Adani Atomic Energy Limited.
• The move marks the first major private sector participation in India’s nuclear energy sector.

Legislative Framework: SHANTI Act
• The SHANTI Act replaces the earlier Atomic Energy Act.
• It allows private companies to operate nuclear power plants and collaborate with foreign technology providers.

Expansion of Nuclear Energy Capacity
• India’s current installed nuclear power capacity is about 8.8 GW.
• The government aims to increase it to around 32 GW within the next decade.

Policy Debate and Controversy
• Opposition parties have alleged that the legislation favours specific corporate interests.
• Critics argue the policy shift may raise concerns regarding safety regulation and transparency.

Significance / Applications
• Nuclear power is a low-carbon energy source, supporting India’s clean energy transition.
• Private investment could accelerate nuclear infrastructure expansion.

Relevant Prelims Points:

  • Nuclear Power
  • Electricity generated through nuclear fission reactions in nuclear reactors.
  • Considered a low-carbon energy source.
  • Atomic Energy Act (Earlier Framework)
  • Provided the legal basis for government monopoly over nuclear power generation.
  • Nuclear Energy in India
  • Contributes around 3% of India’s electricity generation.
  • Operated primarily by Nuclear Power Corporation of India Limited (NPCIL).
  • Three-Stage Nuclear Power Programme (India)
  • Stage 1: Pressurized Heavy Water Reactors (PHWRs) using natural uranium.
  • Stage 2: Fast Breeder Reactors (FBRs) using plutonium.
  • Stage 3: Thorium-based reactors.

Relevant Mains Points:

Role of Nuclear Power in Energy Transition
• Helps reduce carbon emissions while ensuring reliable baseload power.
• Important for achieving India’s climate commitments under the Paris Agreement.

Advantages of Private Participation
• Mobilizes capital investment and technological collaboration.
• Accelerates infrastructure development and capacity expansion.

Concerns and Challenges
• Nuclear power requires strict safety regulations and high capital investment.
• Liability, waste disposal, and security remain major policy concerns.

Way Forward
• Strengthen independent nuclear regulatory mechanisms.
• Ensure transparency and safety compliance in private participation.
• Promote international collaboration for advanced reactor technologies.

UPSC Relevance:
Prelims: Nuclear power, NPCIL, India’s three-stage nuclear programme.
Mains (GS III): Energy security, clean energy transition, nuclear energy policy.

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