Private players are seeking green energy status for nuclear power to enable access to green bonds, green loans and blended financing for nuclear projects.
During recent stakeholder consultation by NITI Aayog, they sought review of existing green finance frameworks, including Ministry of Finance's Sovereign Green Bond Framework, RBI's framework for acceptance of green deposits and SEBI's framework for green debt securities.
"Currently for Ministry of Finance sovereign green bond framework does not include the nuclear energy and there was suggestion from many industry participants to review these frameworks...whether it is Ministry of Finance sovereign green energy bond framework or RBI's framework for acceptance of green deposits or even SEBI's green debt securities framework. So I think there is need for review of these frameworks to allow access to green bonds and green loans and blended financing schemes," Abhay Karandikar, member NITI Aayog said during inaugural session of POWERGEN India's NuclearX event.
"The world over...I think even including World Bank and Asian Development Bank are reviewing these restrictions on nuclear investments and similar things perhaps I think may be needed," he added.
During consultation, private players also suggested nuclear power projects be accorded infrastructure status, he said, while adding that in NITI Aayog's view nuclear power is already covered under infrastructure framework, as Harmonised Master List of Infrastructure Sub-sectors maintained by Department of Economic Affairs includes electricity generation. "Perhaps a clarification in this regard may be needed," he added.
Around 150 participants from 60 organisations took part in NITI Aayog's consultation. India opened tightly regulated civil nuclear sector last year for private participation and targets 100 gigawatt-electric (GWe) nuclear power by 2047. Nivruti Rai, MD and CEO of Invest India, said India will require at least $228 billion in investment to achieve target 100 GWe nuclear energy capacity.
Final SHANTI rules to be ready in 2-3 months: Speaking at event, Ghanshyam Prasad, Chairperson of Central Electricity Authority, said final rules under SHANTI Act are likely to be ready in next two to three months, with stakeholder consultations on draft rules currently underway.
He also stressed need to reduce gestation period of nuclear power projects in India. Prasad said site selection would be another major challenge as India scales up nuclear capacity. "A lot of efforts are supposed to be made in identification of sites. We are all working with the states. Teams are there, site selection committees are there," he said.
On nuclear fuel, Prasad stressed need to develop thorium-based technologies to strengthen India's long-term energy security.