Private sector in nuke power generation impossible without clear mandate: Chavan

New Delhi, Feb 27: Amendments to the Atomic Energy Act (AEA) to allow private ownership of nuclear plants will be "impossible" if next Lok Sabha election gives a fractured verdict, Union Minister Prithviraj Chavan said here on Friday.

However, he said the private sector was welcome to become minority parters of central government companies and start nuclear power generation.

In an apparent reference to Left parties, he said the UPA government could not carry out amendments to the AEA of 1962 to allow private companies run nuclear plants due to lack of clear mandate.

"We could not do it because of the mandate for our government for the last five years was fractured. You know where the opposition came from," Chavan said at a session on nuclear energy organised by Assocham.

"If the next election throws up an even more fractured polity ... it will be impossible to do," said Chavan, the Minister of State in the PMO.

He said amending the AEA "is not an easy political decision" as it includes private sector ownership of nuclear power entities.

"There are issues about fuel ownership and about spent fuel. Of course, it has been done in western countries but it would be first for us," he said.

Chavan said he felt there was space for the private sector in nuclear power sector.

"They (private companies) can join PSUs with 49 percent minority participation. The best option is to be a partner," he said.

Chavan said he had not come across any foreign nuclear energy company willing to come and produce electricity in India. "They are interested in selling equipment," he added.

As per law, only central government-run companies -- Nuclear Power Corporation of India and Bhavni -- can operate nuclear reactors in the country.

Bureau Report