India railways and other state owned enterprises in the energy sector could soon create an investment fund for the nuclear energy sector.
India has set for itself an ambitious target to generate 63 GW of nuclear energy by 2032. In order to hit this target India has decided to expand its nuclear power program by establishing more nuclear plants in different parts of the country. State owned Nuclear Power Corporation of India Ltd (NPCIL) currently operates nuclear reactors through a mix of debt and equity budgetary support and debt financing from the technology sourcing in the U.S.A, Russia and France.
NPCIL is a state owned enterprise under the administrative control of the department of Indian Atomic Energy (DAE). The company was registered as a Public Limited Company under the companies Act. NPCIL is responsible for the design, construction, commissioning and operation of nuclear power reactors.
NPCIL is prospecting several state owned enterprises in the energy sector, which includes Oil and Natural gas Corporation, Indian Oil Corporation and National Thermal Power Corporation NTPC Limited (NTPC) LTD, as well as national transporter, which includes Indian railway. According to NPCIL director of projects Mr. Rohit Banerjee, these negotiations are allowed after the amendment in Atomic Energy act of India.
The 1962 Atomic Energy Act of India was amended in January 2016 that allowed NPCIL to collaborate with state owned enterprises of India in the nuclear field.
Note: Atomic Energy Act 1962 was amended in January 2016 to expand the definition of a government company providing for creation of joint ventures that are majority owned by NPCIL while other state run companies own 49%.
