Uranium was one of the very few commodities to experience gains in 2015 and Peninsula Energy reports that India expects, in the first half of this year, to commit with Westinghouse Electric to build six nuclear reactors, a senior government official has said, in a sign its $150 billion dollar nuclear power program is getting off the ground.
One proposed power plant is in Prime Minister Narendra Modi’s home state of Gujarat. It will accelerate India’s plans to build roughly 60 reactors, which would make it the world’s second-biggest nuclear energy market after China.
India wants to dramatically increase its nuclear capacity to 63,000 MW by 2032, from 5,780 MW, as part of a broader push to move away from fossil fuels, cut greenhouse gas emissions and avoid the effects of climate change.
The US signed a pact with India in 2008, opening the way for nuclear commerce that had previously been precluded because of India’s nuclear weapons program and shunning of the global Non-Proliferation Treaty (NPT).
Hopes then that reactor makers would get billions of dollars of new business evaporated after India adopted a law in 2010 giving the state-run operator Nuclear Power Corp of India (NPCIL) the right to seek damages from suppliers in the event of an accident.
Indian officials have been trying to assuage suppliers’ concerns, including by setting up an insurance pool with a liability cap of $226.16 million. A final hurdle – ratification of the International Atomic Energy Agency’s Convention on Supplementary Compensation for Nuclear Damage (CSC) – is expected within weeks, the Indian government official said.
The CSC requires signatories to shift liability to the operator and offers access to relief funds.
In a statement, Westinghouse said it expected India would move towards a framework that satisfies the CSC and channels accident liability exclusively to the operator. The statement made no reference to ongoing negotiations.