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INDIA NUCLEAR SECTOR TRICKLES DOWN


AS INDIA HOPES TO TRIPLE ITS ATOMIC ENERGY CAPACITY BY 2050 TO PROVIDE A QUARTER
OF THE COUNTRY’S POWER, SUPPORT INDUSTRIES SUCH AS MANUFACTURING, MINING, AND
ENGINEERING ALL STAND TO GAIN.



The Pressurised Heavy Water Reactors (PHWR) Tarapur 3 and 4 at the Tarapur
Atomic Power Station in Thane district of Maharashtra state. AFP

Jul 21, 2017
Listen In English
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Beta V.1.0 - Powered by automated translation


Rebecca Bundhun, Foreign Correspondent, reports from Mumbai

India’s burgeoning civil nuclear power ambitions are creating more opportunities
for domestic and foreign businesses, despite the huge challenges the sector
faces.

India has made significant progress in its nuclear power programme recently as
it strives to meet the growing appetite for power.

Canada on Wednesday announced a C$350 million (Dh1.04 billion) deal to supply
uranium to India. Canada’s Cameco, one of the world’s biggest producers of
uranium, is set to provide 7.1 million pounds of the fuel to India over the next
five years.

Canada had previously banned uranium exports to India after it used Canadian
technology to develop a nuclear bomb in the 1950s. India is also close to
reaching a civil nuclear agreement with Australia over uranium fuel supply.



A few days earlier, the Nuclear Power Corporation of India (NPCIL) signed an
agreement with Areva, a French firm, related to the Jaitapur nuclear power plant
in Maharashtra, which has suffered setbacks over issues including pricing of the
project and liability laws. This is a significant step in allowing the project
to move forward. Areva also signed a deal with the Indian engineering company
Larsen & Toubro (L&T), which would lead to some of the key nuclear equipment for
the plant being manufactured locally.

“This partnership will add new dimensions to the capabilities of India’s
manufacturing sector in the nuclear business,” said MV Kotwal, the director and
president of heavy engineering at L&T.

In January, the Indian prime minister Narendra Modi reached a breakthrough deal
with the US president Barack Obama to pave the way for more investment into
nuclear energy.

These developments come despite strong opposition among many to the development
of India’s nuclear power capabilities, largely because of concerns over safety.

India’s demand for energy is rapidly rising amid a growing economy and
urbanisation, meaning it needs to boost production capabilities to improve its
energy security.



There is already a shortage of power. Many parts of the county suffer frequent
blackouts and about 300 million people do not have access to electricity,
according to the World Bank.

Coal is the country’s biggest source of power, accounting for about two-thirds
of its electricity production. Despite expansive natural reserves of coal, the
country is heavily dependent on costly imports of the fuel.

The need for energy is only expected to surge over the coming years, and nuclear
power is considered by authorities to be part of the solution to the problems.

To this end, Mr Modi has urged the department of atomic energy to triple nuclear
power capacity by 2024 from 5,780 megawatts. India is aiming for nuclear power
to produce 25 per cent of its electricity by 2050.

“India’s dependence on imported energy resources and the inconsistent reform of
the energy sector are challenges to satisfying rising demand,” says the World
Nuclear Association. “India’s fuel situation, with a shortage of fossil fuels,
is driving the nuclear investment for electricity.”



But it adds that the nuclear targets would require “substantial uranium
imports”.

Trade bans have held back the industry, restricting imports of uranium. This has
led to a “largely indigenous” development of the industry.

“India’s nuclear energy self-sufficiency extended from uranium exploration and
mining through fuel fabrication, heavy water production, reactor design and
construction, to reprocessing and waste management,” the World Nuclear
Association says.

“Because of earlier trade bans and the lack of indigenous uranium, India has
uniquely been developing a nuclear fuel cycle to exploit its reserves of
thorium. Since 2010, a fundamental incompatibility between India’s civil
liability law and international conventions limits foreign technology provision.
India has a vision of becoming a world leader in nuclear technology because of
its expertise in fast reactors and thorium fuel cycle.”

Thorium is beneficial for India because it has substantial resources of the
fuel. It is also potentially safer. Uranium is fissile on its own, whereas
thorium is not, meaning thorium’s reactions can be better controlled and stopped
where necessary, and therefore it is less likely to result in a nuclear reactor
disaster on the scale of Fukushima. Proponents say thorium produces less
radioactive waste and more power than uranium. But opponents argue that it still
produces waste that is highly hazardous, could still result in accidents and is
has yet to be proved commercially viable.



There are seven operational nuclear power plants in India. The first, the
Tarapur plant in Maharashtra, became commercially operational in 1969, a
two-units facility with a total capacity of 320MW. The latest was the Kudankulam
project in Tamil Nadu, which started commercial operations in December with a
capacity of 1,000 MW.

In its federal budget presented in February, the government said it would
commission the second unit of the Kudankulam nuclear power station, which uses
Russian technology, in the 2015-2016 financial year. It is another project that
has suffered severe delays, partly because of opposition by locals.

Mr Modi this month called for easing of restrictions on uranium imports to allow
India to increase its nuclear power production.

“Nuclear energy is definitely one of the options India has,” says Karl Rose, the
senior director of policy and scenarios at the World Energy Council. “If you
look at it objectively and not emotionally, it’s very often a question of, ‘Is
it cost competitive?’ In many western countries, new nuclear stations are not
being built because of cost rather than public sentiment. For India, the
question will be, under the current economic environment, can you build nuclear
power stations at a low enough cost that the power you produce will be
competitive?”

In comparison, the cost of building a nuclear power plant in the United States,
excluding financing, is about 30 per cent higher than in India, according to the
World Nuclear Association. Delays to projects would add to expenses, however.



It is also critical to try to prevent opposition to projects, he adds.

“If you decide that it’s part of your portfolio, you need to engage the
stakeholders early enough that you are able to execute the projects in a timely
fashion and you don’t get held up in courts because people protest and challenge
the licences.”

Cyient, a technology and engineering company based in Hyderabad that has
developed nuclear plant engineering expertise, is among the companies that stand
to benefit from development of India’s nuclear power infrastructure.

“The growing demand for energy, combined with the rising need for clean power
generation options, has helped nuclear power plants make a big comeback,” says
Bharat Heavy Electricals, another nuclear-sector manufacturing company.
“Governments across the world have drawn up aggressive plans for nuclear power
programmes and have scaled up their investments accordingly. All of these
dynamics have contributed to major opportunities opening up within this sector.”

The International Atomic Energy Agency highlights that nuclear energy could play
a role in helping to grow India’s developing economy. It also says nuclear
energy can help reduce the impact of volatile fossil fuel prices, as well as
mollify climate change.



There has been mounting pressure on India from its global peers over its carbon
emissions. New Delhi has been rated as the world’s most polluted city and 13 of
the world’s dirtiest 20 cities are in India, according to the World Health
Organization.

“The world takes a lead on climate change and teaches lessons,” Mr Modi said
earlier this month. “But when we tell them we want to proceed on the path of
nuclear energy, since it is good for environment protection, and ask for fuel,
they refuse.”

[ business@thenational.ae ]


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