Editorial 1: Having private participation in India’s nuclear energy
Context
With the government proposing such a partnership, the existing framework governing the nuclear energy sector needs to be assessed.
Introduction
In July 2024, the Government of India made announcements on the expansion of India’s nuclear energy sector, proposing partnerships with the private sector for research and developing Bharat Small Reactors (BSR), Bharat Small Modular Reactors (BSMR) as well as newer nuclear energy technologies. Presumably, this announcement is aimed at India’s ambitious pursuit of the decarbonisation of energy generation and achieving 500 Gigawatts of non-fossil fuel-based energy generation in India by 2030, as pledged at the COP26 Summit in Glasgow, in 2021.
Revisiting the existing nuclear framework
The government’s announcement has renewed interest in revisiting the framework governing India’s nuclear energy sector.
- The Atomic Energy Act, 1962 (AEA), amended as the Atomic Energy (Amendment) Act, 1987, is the primary governing statute.
- Section 3(a) of the AEA empowers only the central government to control atomic energy production, development, and disposal.
Supreme Court decision on Private Sector involvement
- On September 17, 2024, the Supreme Court dismissed a petition challenging the AEA’s restriction on private involvement in nuclear power.
- The court observed that the Parliament has designed a regime for careful exploitation of atomic power, with stringent safeguards to prevent misuse and accidents.
- Pending Challenges to Civil Nuclear Liability Law: The constitutionality of the Civil Liability for Nuclear Damage Act, 2010 (CLNDA) remains challenged, introducing regulatory uncertainty.
- This creates a high degree of regulatory uncertainty but also have the potential to leave private investments in the sector in a state of limbo.
Thus, the road map for private participation in the Indian nuclear energy sector must run consonance, and not in conflict with the applicable laws.
AEA, restrictions on private sector
- Sole control of the nuclear energy sector: The AEA grants the government sole control over nuclear energy activities through the Department of Atomic Energy (DAE) and the Nuclear Power Corporation of India Limited (NPCIL).
- Private sector involvement has been limited to engineering, procurement, and construction (EPC) roles in reactor infrastructure.
- Promoting Private Sector Participation: The DAE and NITI Aayog released a report in 2023 highlighting key enablers for private sector participation in Small Modular Reactors (SMRs).
- Focus of the report: on “Conducive SMR regulatory framework led by national regulators” and “Unambiguous Civil Nuclear Liability Framework and supporting legal structure” to ensure a sustainable and continuous engagement of the private sector.
- Private EPC contracts: the NPCIL has involved the private sector only in engineering, procurement and construction (EPC) where the infrastructure for the reactor is developed by private entities such as Megha Engineering & Infrastructures and Reliance.
- Financial implications of Private Sector involvement: the NITI Aayog report, and the Union Minister of Finance’s statement contemplate partnering with private participants to attract nearly $26 billion of investments into the sector. Such involvement, specifically for research and development (R&D), is strictly prohibited as in Section 3(a) of the AEA.
- Regulatory oversight: Atomic Energy Regulatory Board (AERB): Rule 35 of the Atomic Energy (Radiation Protection) Rules, 2004, grants Atomic Energy Regulatory Board (AERB) authority over radioactive technology. But concerns about its lack of independence persist.
- The Nuclear Safety Regulatory Authority Bill 2011 aimed to address this but it was never enacted.
- Investments: Attracting private investment in nuclear energy will require significant changes to the AERB’s structure and functions, alongside efforts by organisations such as the NPCIL and the DAE to create programmes that encourage private participation while ensuring a robust regulatory oversight of the sector.
A possible structure
- Public-Private partnership: A possible approach where the NPCIL or a similar government body/authority holds 51% ownership of nuclear plants, aligning with existing laws.
- This structure may invite private capital while keeping responsibility, ownership, and accountability with the government.
- Additionally, entities with a majority government stake would also be covered under Section 2(h) of the Right to Information Act (RTI) Act, ensuring transparency.
- The entity would also be required to make disclosures under Section 4 and respond to reasonable public queries under Section 6 of the RTI Act, maintaining public accountability.
- Liability standards in Nuclear infrastructure: The other large concern is a significantly higher standards of liability with nuclear infrastructure.
- For reasons that are obvious to anyone who is vaguely familiar with nuclear technology, the presence of nuclear reactors in the vicinity of human settlements introduces a gnarly threat.
- The Chernobyl disaster of 1986 and the Fukushima Daiichi accident of 2011 are near synonymous with the word nuclear in this context.
- Compensation for Nuclear Disasters under CLNDA in India:
- Provides civil liability for nuclear damage.
- Ensures prompt compensation to victims of nuclear incidents.
- Operates under a no-fault liability system for the operator.
- Constitutional challenge: The constitutionality of the CLNDA is currently challenged in a writ petition before the Supreme Court.
- Grounds for challenge:
- Violation of the absolute liability principle
- Violation of the polluter pays principle
- Concerns over serious dangers to nuclear safety
- The judgment in G. Sundarrajan vs Union Of India and Ors. (2013) has refences to the Chernobyl and Fukushima disasters while addressing a Special Leave Petition (SLP) concerning protests over the Kundankulam nuclear power plant in Tamil Nadu.
- Although the Supreme Court allowed the plant’s commissioning, it issued directions for regular inspections, reports, and due diligence by the DAE, the NPCIL, and Ministry of Environment, Forest, and Climate Change.
Specific needs
- India’s country profile, as published by the World Nuclear Association in September 2024 recognises an in-principle proposed gross increment of 32 GWe in the Indian nuclear energy production capacity.
- High costs: It is evident that this ambitious growth in nuclear energy infrastructure is very capital intensive and requires extremely skilled construction resources due to high-risk physical reactions.
Way Forward
Given the sensitive requirements for nuclear technology, strict and comprehensive legislation is crucial to address these needs and ensure ease of business. The legislative restriction on R&D under the AEA is just one issue, while litigation on the constitutionality of the Civil Liability Law, has been pending before the top court for over 12 years now. These factors only contribute to uncertainty of this ambitious target.
Conclusion
Energy generation capacity has been central to all economic development across the globe after the Industrial Revolution and a commitment to achieving the same through renewable sources makes India’s ambition just as admirable as it is challenging. It will undoubtedly be interesting to see how legislative and policy changes will shape the Indian nuclear energy sector. Thus, policy change can assist to achieve energy goals.
Editorial 2 : India’s ‘silver dividend’, challenge to opportunity
Context
There need to be tailored reforms to cater to the evolving needs of the country’s senior citizens.
Introduction
While the rising quantum and share of the elderly population is a global concern, India and China, the two population giants in the world, have a disproportionate share of the elderly given their large population size. And rising longevity is intensifying this concern every day. Therefore, it is pertinent to transform this challenge into an opportunity that involves suitable reforms to cater to the evolving needs of this population. In this regard, evidence indicates that it is not merely the quantum of this population but also its quality that needs attention and intervention.
Rising health-care consumption and reform
- For instance, the health-care consumption of this segment of the population, presently estimated at $7 billion, is rising.
- Such a rise in India is because three-quarters of the elderly have at least one chronic ailment along with a quarter of them having limitations in daily living.
- In addition, a third of them display depressive symptoms along with low-life satisfaction.
- When these adversities are coupled with economic insecurities, there is every reason to dwell on senior care reform to ensure the better well-being of this population segment.
Multi-sectoral reform initiative
Such a reform initiative needs to recognise the multi-sectoral attention involving health, social, economic/financial and, above all, digital domains towards mainstreaming the elderly within the evolving environment.
- Health empowerment and inclusion can happen by improving health literacy among the elderly and their care-givers.
- Policy efforts: On this front, the initiative of adopting comprehensive health care at health and well-being centres under the renewed mission of the Ayushman Arogya Mandir (AAM) may be considered a good initiative.
- About AAM: This involves a preventive, promotive, curative and rehabilitative component under the multiple system of ayurveda, yoga, naturopathy, unani, siddha and homoeopathy (AYUSH).
- Strengthening the health-care infrastructure: to focus on the elderly by expanding tele-consultation services, enhancing the skilled workforce for the elderly, and capacity building of the existing workforce may facilitate the utilisation of health care among senior citizens despite limitations of means on the one hand and specific need on the other.
This all-inclusive package has a mental health services aspect as well as nutrition-related services that will operationalise senior care through preventive, wellness and therapeutic interventions and is thus holistic.
Addressing financial insecurities
- Need for Sensitisation: The social inclusion of the elderly may well be served by sensitising the larger community on their needs and sensitivities and by establishing peer support groups for interaction.
- Awareness about entitlements: At the same time there is a need to make them aware of their entitlements and legal safeguards on inheritance, succession and protection that will help their confidence in handling ugly eventualities that could arise in the course of life.
- Addressing insecurities: Economic and financial insecurities need to be addressed through innovative schemes and plans specifically for the elderly, in terms of investments, to reduce their financial burden.
- Curative and inclusive product portfolio: Such a burden that is largely on account of health care costs may be protected with well-designed insurance products such as ₹5 lakh coverage for every individual above the age of 70 years.
- Reskilling the younger population: that is also aging (given their adaptability to modern technology and infrastructure) to be engaged in the labour market may be another option to maintain the economic independence of the elderly.
- Digital Inclusion: the inclusion of the elderly in a rapidly growing digital environment is equally important for the elderly to benefit from many schemes and programmes with ease and convenience.
- Digital adaption among the elderly: still remains below expectation, excluding them from desirable schemes and benefits.
- Focussed targeting: the current elderly population and those younger who are also aging to go digital should get a second look from the domain of finance to the delivery of numerous care services that are meant for the elderly.
As an economic segment
- Tuning into opportunities: Besides this five-point care reform for seniors, the idea of turning this emerging challenge into an opportunity lies in viewing a silver economy that comprises economic activities, and goods and services catering to this population segment.
- On this count, the available worth of this economy is estimated at ₹73,082 crore and is expected to grow manifold over the years.
- Elderly Population: While the 60-plus share is estimated at 13.2% in 2031, and at 19% by mid-century, the elderly will constitute a major consumer segment that is also characterised as the wealthiest given the professional in the age group of 45-64 years is the richest.
- Boost to wellness driven program: Further, as health-care consumption is about a third of their entire consumption, it can ignite the health and wellness-driven businesses among the senior care segment in India.
- Leveraging economic growth: On the whole, the silver economy is set to grow in India and the world, with a market size that has potential for innovation in the health technology domain as well as utility infrastructure for varying limitations that come with age.
One has the quote these days which says ‘they become rich before they grow old’.
Conclusion
In recognition of this eventual reality, the government appears to have given consideration to rehabilitating the silver segment by launching the Senior Able Citizens for Re-Employment in Dignity (SACRED) portal to connect senior citizens with job providers in the private sector. Another initiative is the Senior care Ageing Growth Engine (SAGE), by the Ministry of Social Justice and Empowerment, to promote and incentivise senior care products.
