Three big developments to give boost to India’s nuclear programme

India’s nuclear programme is set to get a huge boost thanks to three big changes. First, Japan has asked India for a dedicated nuclear reactor site, signalling that not only is it willing to shed all inhibitions of doing nuclear commerce with India but is also keen to be counted with the US, France and Russia as a power building nuclear parks here, reports in the Indian media said.

Second, India is giving big contracts for six reactors each to US blue-chip companies GE and Westinghouse. This is a big shift from India’s long-standing policy of signing deals for two reactors at one go. The six-reactor deal with the two American companies will mean cheaper pricing for India.

Third, a critical component of the nuclear industry, the insurance structure, will be activated next month when Nuclear Power Corporation of India Ltd (NPCIL) buys a nuclear insurance policy at Rs 100-crore premium from a consortium that includes General Insurance Corporation (GIC) and a group called Nuclear Risk Insurers from Britain.

The Japanese willingness to set up a nuclear park in India is a major foreign policy advance. This is because Japan is the only country that has faced a nuclear attack and is still willing to invest in India, which despite the Indo-US nuclear deal is still a nuclear weapon state outside the Non-Proliferation Treaty. Meetings are slotted over the next few months to close Indo-Japan nuclear negotiations.

Tokyo’s decision shows an even wider global acceptance of India’s nuclear programme. Plus, Japan’s government-driven investment plans have typically suited India most. Critical infrastructure projects, the Metro for example, took off on the back of the Japanese government’s financial commitment. Capital-intensive nuclear programmes will benefit from Japanese involvement.

The 6-reactor-each order for Westinghouse and GE, which got finalised following US President Barack Obama’s visit earlier this year, will lower costs, and costs have always been an issue while negotiating nuclear commercial deals with the US. The sites for these reactors are in Gujarat and Andhra Pradesh.

An insurance pool was a critical part of the liability setup, and GIC plus the British group’s Rs 1,500-crore insurance pool will cover India’s civil nuclear programme, with NPCIL buying the insurance next month. According to the CNLD Act, this sum would be made available as compensation right away after any nuclear disaster or accident that impacts areas 10 km beyond the site. Payment will not depend on fixing responsibility and will be quick


  1. Seemab said:

    This is so ridiculous to see that the government is celebrating the bigger three developments in the nuclear domains despite of knowing the intricacies regarding the social infrastructure, including poverty, chronic diseases non availability of proper food and clean water even people pee on roads due to non availability of toilets. Actually the boost would be in developing the social infrastructure and making the country to move along with two tiers rather just spending on defense sector which would only increase India's military light but would make the country fall in social domain.

  2. Nehath said:

    For India, there is no need to sign a Nuclear Non Proliferation Treaty (NPT). Interestingly, India is enjoying international nuclear collaboration with all of those states which are the signatories as well as proponents of NPT. But their vivid inclination in shaking hand with a state like India is quite questionable. It is simply a mockery of NPT. India is the one who has literally introduced “Nuclear” to the South Asian region and constantly involved in nuclear proliferation activities. Now, opening up of nuclear cooperation with every major nuclear weapon state indicate that there is much hypocrisy and double standards in the way of countering nuclear proliferation.

  3. Pingback: Special Report: Nuclear Law and Liability Developments in India (Part 3 of 3) | Future of Nuclear

  4. Health Insurance said:

    This was a very interesting read! Lots of opinion and very good research to be shared! Good feedback from the online readers as well. I must commend the author and web designer as well. Thank you for taking the time to share this with us.

  5. Health Insurance said:

    Nice post on India’s nuclear programme, Yes India is very fast growing in nuclear sector and increase our nuclear power in world.

Comments are closed.