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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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.

11. 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.

12. 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