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This is an archive article published on August 30, 2007

Atomic Act: ‘no change now’ to let in pvt players

While the Government is considering a clutch of amendments in the Atomic Energy Act 1962, there is no immediate plan to bring an amendment to facilitate the entry of private players into nuclear power generation.

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While the Government is considering a clutch of amendments in the Atomic Energy Act 1962, there is no immediate plan to bring an amendment to facilitate the entry of private players into nuclear power generation.

The Government will consider the issue of private sector participation only after all steps in the 123 Agreement are through, according to highly placed official sources.

The Atomic Energy Act 1962 allows nuclear power generation only by a Central Government company. “The Government has not taken any decision about the participation of private sector in nuclear power generation,” Minister of State in the Prime Minister’s Office Prithviraj Chavan told the Lok Sabha on Wednesday, emphasising that no policy change was required with regard to the manufacture of nuclear components and equipment by private companies.

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As for the amendments in the Act, sought by BJP leader L K Advani as a condition for the BJP’s support to the nuclear deal, official sources pointed out that the opposition leader was yet to spell out specifically what amendments he wants.

External Affairs Minister Pranab Mukherjee brushed off all queries about Advani’s statement: “Ask him (Advani) why he did not do that when he was in the Government for six years.”

During the Question Hour in the Lok Sabha on Wednesday, responding to a query by Samajwadi Party’s Ravi Prakash Verma and BJP’s Syed Shahnawaz Hussain whether the Associated Chambers of Commerce and Industry (ASSOCHAM) had urged the Government to bring such amendments, the Government said that no formal request was received.

Replying to a supplementary question by Congress MP Jyotiraditya Scindia whether the Government is looking at Public-Private Partnership (PPP) models in the nuclear sector to enable the private sector to come in given the fact that Nuclear Power Corporation of India (NPCIL) cannot put in Rs 1,00,000 crore to produce 20,000 MW of nuclear power by 2020, Prithviraj Chavan said that the NPCIL is a “very successful and cash-rich company”.

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Even the current law permits private sector participation in a “minor” way. “There is no problem in 49 per cent participation by the private sector as per the current law. If the law is to be changed, then it will be considered later,” said Chavan.

According to the minister, many developments have taken place since the Atomic Energy Act 1962 and the Government was of the view that some review and certain strengthening of the Act is required. That was why Dr Raja Ramanna Committee was constituted in 1997.

“For the last 10 years we have been considering review of the Atomic Energy Act. This has been necessitated because India has now become a very mature country in the field of advance nuclear technology,” said Chavan.

He added that the Government wants to align the Act with Convention on Physical Protection of Nuclear Materials 1980, which India signed and ratified in 2002. The Government also wants to align the Atomic Energy Act with certain provisions of the Weapons of Mass Destruction Act, which was passed in Parliament in 2005.

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