PRIVATISATION OF NUCLEAR POWER TATA CONSULTING ENGINEERS, Mumbai TRENDS AND ISSUES TOWARDS PRIVATISATION OF NUCLEAR POWER By K V Subramanian TATA CONSULTING ENGINEERS, Mumbai

Current Situation in Nuclear Power Generation in India Ownership Models All operating nuclear power plants owned & operated by NPCIL FBR under construction is owned & will be operated by BHAVINI Presently ownership is limited by law to – Government of India or, A Government Company

Current Situation in Nuclear Power Generation in India Project Execution Models Indigenous nuclear power plants executed on multi-package model Plants supplied by overseas entities executed on E & P or EPC basis

Prospective Ownership Models Emerging trends in Nuclear Power Generation in India Prospective Ownership Models Existing DAE Corporations e.g., NPCIL, BHAVINI New Government owned SPVs created under DAE auspices Non-DAE Government Corporations e.g., DAE-Govt corporations (NPCIL) with NTPC(Junior partner) Public – Private Partnerships (PPP) e.g. DAE-Govt corporations( NPCIL) & private entity(junior partner) Private Ownership Domestic / Overseas / JV

Private participation Necessity for private participation To make significant contribution to India energy needs Private parties interests evident Nuclear power v/s conventional power Attention same under operation / shut Players with right credentials, business interests Necessity for clear & supportive policy framework Necessity for sound ethical practices

Issues & actions- private participation Amendment to Atomic Energy Act Prequalification criteria for selection of private sector participant – establishing minimum criteria Selection of technology Criteria for acceptance of a technology from foreign players. Criteria for selection by private player- low capital costs, less gestation period, higher reliability, etc. Business models to be established – tariff fixing, PPA Responsibilities for site selection ( Studies to be undertaken by Govt) 9-May-18

Front End Work to be undertaken by Indian Government Issues & actions- private participation (contd) Front End Work to be undertaken by Indian Government Appointment of a Nodal Agency Nomination of Potential Sites Site Evaluation Studies Land Availability Population & Environmental Impact Geo-political & Strategic Aspects Seismology On-shore and Off-shore Geology Topography Bathymetry Oceanography Meteorology Flood level Data Fresh Water Availability Power Evacuation Transportation AERB Approval 9-May-18

Issues & actions- private participation (contd) Review of domestic manufacturing sector Regulatory mechanisms Enactment of Public Liability law Nuclear fuel import and spent fuel management responsibilities. Storage and safeguards for fuel Waste management Storage and disposal of Nuclear waste Enunciation of Principles of PPA

Code of ethics: Governs ethical behaviour of an organization its employees Interactions between organizations and external stakeholders Nuclear industry operating organizations – high ethical standards – long term stability

Examples of behaviours important for nuclear facility operating organizations: Decision making- Conservative, risk based approach Safety before commercial gain. Accept personnel responsibility for own/others safety. Integrate safety and environmental condition into business practices Effective mechanisms for communication between the board and operational level managers. Board level decision making it done with appropriate consideration of safety and environmental risks.

Examples of behaviours important for nuclear facility operating organizations(contd): Communicate openly and honestly with regulators employees and all other stakeholders. Maintain a “blame free” reporting culture and encourage full reporting of unsafe and un-ethical practices, incidents, and near misses and use this information to continuously improve the organization. Openly share operating experience information with other industry operating organizations including benchmarking and make effective use of the experiences of others while respecting commercial confidentiality. Materials, technology and information regarding nuclear activities are not illegally sold or otherwise distributed or misused.

Nuclear Industry Operating Organization Culture and Ethics Leadership Leadership Management System Processes Management Management Expected Outcomes Protecting the Health and Safety of Employees, the Public and the Environment Safeguarding Nuclear Materials Exercising Social Responsibility Protecting the Interests of shareholders (Public and/or Private) Maintaining the Trust of Stakeholders