In a move that will help the sustained growth of the energy-starved economy, the Union Government is soon likely to do away with its stand of not allowing any foreign or local private investments in the highly-sensitive nuclear power sector of the country. The center is likely to propose amendments to the Atomic Energy Act, 1962, necessary to make way for private companies in this potent sector. . However, the minister has promised that the amendments will be vetted carefully, and the government will thoroughly examine all the related issues, including nuclear safety, national security and international commitments, before moving the amendment bill to the Parliament for approval. Subsequent to the Parliament acquiescing to the changes, private sector firms will be able to participate in nuclear power generation projects as minority stakeholders.
Pertinently, the Advisory Council, headed by the former governor of the Reserve Bank of India, C Rangarajan, strongly recommended private sector participation in the Government-dominated sector, in two of its reports, “Economic Outlook for 2009-10”, prepared in October 2009, and in the “Review of the Economy 2009-10”, brought out in February 2010. “There is an urgent need to make the necessary regulatory changes so that investment, including from established private companies interested in the business, can begin to flow”, said the advisory panel.
As per the prevailing provisions of the 1962 Act, only the Central Government is entitled to produce, develop, use and sell atomic energy, either by itself or through any authority or corporation established by it or a public sector company, in which not less than 51% of the paid up share capital is held by the Centre.
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