Private Investment in Nuclear Power Sector

The Economic Advisory Council to the Prime Minister in its “Economic Outlook for 2009-10” of October 2009 and in the “Review of the Economy 2009-10” of February, 2010 has recommended private sector participation in nuclear power sector.

The Council has recommended amendment of the Atomic Energy Act, 1962 so as to permit the entry of reputable private companies in the nuclear power sector.

The Atomic Energy Act, 1962 gives power to Central Government to produce, develop, use and dispose off atomic energy either by itself or through any authority or corporation established by it or a Government company in which not less than 51% of the paid up share capital is held by the Central Government. At present Indian private sector can participate in nuclear power generation projects as a minority partner. For the present participation of Indian private sector in nuclear power generation projects will continue to be as per the existing provisions of Atomic Energy Act, 1962.

Amendments to Atomic Energy Act has to be done in a careful manner after a detailed examination of all issues, including nuclear safety, physical security and international commitments.

This was stated by Shri Prithviraj Chavan, the Minister of State (I/C) for Science & Technology and Earth Sciences in the Lok Sabha today.

Source: Press Information Bureau
Date: May 05, 2010