India to Let Private Firms Mine, Import Uranium for Nuclear Growth

• India opens uranium mining and processing to private firms
• Private players can supply critical nuclear equipment; the state keeps control of spent fuel
• Domestic uranium meets 25% of demand; imports and legal changes needed

India is set to allow private firms to explore, import, and process uranium, putting an end to a decades-long state monopoly in the nuclear industry and potentially drawing substantial investment to develop the industry, two government sources said. The move falls under the government's ambitious plan to increase nuclear power capacity twelvefold by 2047.

Also, foreign companies could have minority stakes in nuclear power plants, a laxity towards private and foreign participants. Currently, the state monopolizes the exploration of uranium mining, uranium importing and uranium processing due to risks associated with misuse of nuclear materials, radiation safety and strategic security.

However, the state continues to monopoly reprocessing of spent uranium fuel and plutonium waste in line with global best practice. In order to accommodate growing nuclear fuel demand in accordance with its planned expansion, the government plans to create a regulatory framework that will allow private Indian companies to engage in uranium mining, importing and processing. The policy will also allow private players to supply vital equipment for control systems for nuclear plant and reactors.

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Several countries, including Canada, the US, and South Africa, already allow private companies to mine and process uranium. India has around 76,000 tonnes of domestic uranium that could be utilized to power 10,000 megawatts of nuclear energy for 30 years. However, it is anticipated that only about 25% of all new demand would be met with domestic supplies, with the balance relying on imports and expanded processing capabilities.

Earlier this year, the government announced its intent to liberalize the sector, bringing the attention of major Indian conglomerates to the investment potential. The current plan will require modification of five existing laws, including legislation covering mining, electricity, and foreign direct investment, implementing a framework for private sector involvement in various nuclear activities.

"It's a major and bold initiative by the Indian Government which is critical for achieving the target. The challenge will be to define quickly the rules of engagement with private sector", said Charudatta Palekar, Independent Power Sector Consultant.

A proposed regulatory framework is expected to be announced during this fiscal year, possibly signifying an unprecedented change in India's nuclear energy policy. With these new investments and forecasts, the policy will accelerate the growth of nuclear capacity, be attractive to private sector and foreign investment, while improving India's energy security and keeping oversight on sensitive nuclear activities.