Union Budget 2024 | Government announces opening up of nuclear sector for private companies

'Our government will partner with the private sector for (1) setting up of Bharat Small Reactors, (2) research & development of Bharat Small Modular Reactors, and (3) research & development of newer technologies for nuclear energy', FM Nirmala Sitharaman said.

New Delhi: Union Finance Minister Nirmala Sitharaman on Tuesday announced the opening up of the highly restrictive nuclear sector to private companies during the Union Budget 2024 presentation by allowing them to set up small nuclear reactors and carry out research on small, as well as modular nuclear reactors in partnership with the government.

"Our government will partner with the private sector for (1) setting up of Bharat Small Reactors, (2) research & development of Bharat Small Modular Reactors, and (3) research & development of newer technologies for nuclear energy", she said.

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"Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat", she noted.

Experts, however, pointed out that the entry of the private sector, however, can take place with the amendment of the Atomic Energy Act, 1962 that permits only the government agencies to handle nuclear material and technologies.

Currently, the involvement of private companies like L&T, Godrej and Walchandnagar Industries are limited to executing turnkey projects for government companies.

The Department of Atomic Energy that has perfected its 220 MW pressurised heavy water reactors over the years, is now experimenting with Bharat small modular reactors, which will be a similar nuclear power plant using light water, and other smaller nuclear reactors that can help expand the reach of nuclear power.

Last month, Union Science Minister Jitendra Singh, at a review meeting, asked the DAE to carry out suitable design modifications to the 220 MW PHWR and convert it to a Bharat Small Reactor for captive nuclear power generation.

Singh also asked the DAE to work on the Bharat Small Modular Reactor (BSMR) 220 MW to use light water-based reactors by replacing the calandria with a pressure vessel.

Such reactors – once their safety is well established – can be set up at the sites of retiring coal plants for rapidly ramping up the nuclear capacity.

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The country’s installed nuclear capacity of 7.48 GWe will enhance to 13.08 GWe by 2029 with the addition of seven more nuclear reactors.

Sitharaman’s announcement on private participation in the nuclear sector comes four years after the Union government opened up the space sector for private firms.

As the private space business grew, the Finance Minister announced establishing a Rs 1,000 crore venture capital fund for expanding the economy by 5 times in the next 10 years.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.