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No decision on private participation in n-power

NEW DELHI: The government has said the private sector could not participate in nuclear power generation under the existing legislation, but a review was required in view of the changing situation.

Replying to a question in the Lok Sabha, Prithviraj Chavan, Minister of State in the Prime Minister’s Office, said the Atomic Energy Act, 1962 allowed nuclear power generation only by a Central government company.

However, for manufacture of equipment and components, no policy change was required, and private sector companies were already involved in it.

“In fact, the government has encouraged and worked with both public and private companies in this regard.”

It was only in nuclear power generation that no decision was taken on private sector participation, the Minister said.

According to the existing law, private players can hold up to 49 per cent equity in any nuclear power generation company but the majority shares have to remain with the Centre.

No final decision was taken on whether the private sector should be allowed to generate nuclear power as the Nuclear Power Corporation was cash rich.

Mr. Chavan said a review of the Act had been under consideration for the past 10 years and an expert committee, set up in 1997 under the chairmanship of scientist Raja Ramanna, gave its report in 1998.

This report was reviewed by an expert committee of the Department of Atomic Energy, which made some recommendations.

Asked about its recommendations, the Minister of State said these related to national security and strengthening of the regulatory mechanism in the atomic energy sector.

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