Govt to build N-buffer stocks, overseas assets

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New Delhi, Oct 2: With the US Congress ratifying the 123 Agreement on Indo-US civilian nuclear co-operation on Wednesday, the UPA government is modifying its integrated energy policy (IEP) to factor in the changes in India’s nuclear status. Drafted two years ago and cleared by Prime Minister Manmohan Singh on the eve of his recent visit to New York and France, the IEP will now be amended to specify the country’s need to acquire uranium assets overseas as well as create buffer stocks of the fissile element.

The IEP, which envisions acquiring oil and gas assets abroad to reduce the country’s dependence on imports, will also include uranium assets. “We will certainly mention acquiring uranium assets abroad, like all other energy assets,” said Kirit Parikh, member (energy) in the Planning Commission. At the full plan panel meeting on September 20, where the Singh cleared the IEP, Atomic Energy Commission chairman Anil Kakodkar also suggested exploring the possibility of acquiring uranium assets overseas.

The draft IEP had suggested a three-stage process, which includes extensive use of uranium, tapping India’s vast thorium resources and becoming energy independent beyond 2050. With limited domestic uranium deposits, the IEP suggested imports to ensure 10,000 mw of power generation in Phase-I of the nuclear energy programme, should NSG restrictions be lifted.

The IEP will also call for creating buffer stocks of uranium, just like other imported energy sources. “Like we say that India should worry about having a buffer stock of oil, we need to add the need to create a buffer stock of uranium,” Parikh said.

The Centre is also considering opening up the nuclear energy sector to private players. “We should really open it up for private sector participation. The exact mechanism has to be worked out. But unless we have private sector participation, the full benefits of the nuclear deal will not accrue to us,” Parikh said.

“We permit 100% FDI in the power sector. So, maybe we can do it in nuclear power, too. I think we will relax the conditions that restrict nuclear energy projects to the public sector,” Parikh said, indicating that the prospect of India allowing 100% FDI in the nuclear energy sector cannot be ruled out.