In a major decision aimed at giving impetus to India’s domestic nuclear power production, the Union Cabinet on Wednesday approved a proposal for indigenously building 10 atomic reactors of 700 MW each. This is the largest-ever approval granted for such facilities in one go. The Pressurised Heavy Water Reactors (PHWRs) will be developed by the Department of Atomic Energy. The 10 reactors would be built at Mahi Banswara (Rajasthan), Chutka (Madhya Pradesh), Kaiga (Karnataka) and Gorakhpur (Haryana).
It would be one of the flagship Make in India projects in this sector.
The decision was taken at the meeting of Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.
“A total of 7,000-MW capacity will be added. It will help produce clean energy,” Union Power Minister Piyush Goyal said. “India currently has 6,780 MW from 22 operational plants. Another 6,700 MW of nuclear power is expected to be added by 2021-22 when currently under-construction projects come on stream in Rajasthan, Gujarat and Tamil Nadu,” said a Government statement.
With likely manufacturing orders of close to Rs 70,000 crore to the domestic companies, the project is expected to help transform Indian nuclear industry and generate more than 30,000 jobs in direct and indirect employment.
“The Cabinet’s decision reflects the Government’s commitment to prioritise the use of clean power in India’s energy mix, as part of low-carbon growth strategy and to ensure long-term base load requirement for the nation’s industrialisation,” said the statement, adding, “It also supports
India’s commitment to sustainable development, energy self-sufficiency, and bolsters global efforts to combat climate change.”
The Government also approved a new policy under which fuel supply to the power sector will be either through the auction route or power purchase pact based on competitive bidding of tariffs. The move may ease stress on account of non-availability of linkages to power sector projects.
“The coal availability scenario has now emerged from scarcity to adequacy,” the Coal Ministry said in a statement. “In this adequate coal availability scenario, the present policy proposes a fading away of the old linkage allocation policy and emergence of a new linkage allocation policy based on transparent and objective criteria for the optimal utilisation of the natural resources,” it added.