India may allow private firms to mine, import uranium: Report

The Indian government is reportedly set to introduce a regulatory framework allowing private companies to mine, import, and process uranium. This move aims to end the decades-old state monopoly over the nuclear sector and attract billions of dollars in investments to enhance nuclear power production.

According to a report in Reuters, the policy is expected to be announced within the current fiscal year. It will also enable private entities to supply critical control system equipment for nuclear power plants.

India has maintained exclusive control over the uranium industry due to concerns about nuclear material misuse, radiation safety, and strategic security. However, to meet the growing demand for nuclear fuel, the government is considering a shift in policy. The initiative is part of Prime Minister Narendra Modi's vision to expand nuclear power production capacity by 12 times by 2047, which could result in nuclear energy supplying 5 per cent of the country's total power needs.

The domestic supply of uranium is inadequate to support this ambitious expansion. While India has approximately 76,000 tonnes of uranium, enough to sustain 10,000 megawatts of nuclear power for 30 years, this only covers around 25 per cent of the projected increase. Consequently, the rest must be imported, necessitating an increase in the country's processing capacity.

Amending the existing legislation to accommodate private participation in the uranium sector is also a complex affair. The proposed changes will require modifications to five laws, including those regulating mining, electricity, and foreign direct investment, to facilitate private sector involvement.

Private sector engagement in uranium mining aligns India with countries like Canada, South Africa, and the United States, where private firms are already active in this field.

The Finance Ministry, Department of Atomic Energy, and the Prime Minister's Office have yet to issue statements regarding these developments. However, the government's intention to open up the sector was hinted at in its budget announcement on February 1.