Public CompanyIndia should manufacture equipment of N-industry: Kakodkar
The Indian private industries who are keen to participate in the large growth of civil nuclear power programme in the country should immediately concentrate on the manufacturing of equipments to become a major N-supply chain provider and later even exporters, Chairman, Atomic Energy Commission, Dr Anil Kakodkar said.
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"Instead of jumping first for utilities (power plants), the new private entrants to the nuclear industry should grab the opportunity and maximise India"s advantage in manufacturing of nuclear equipments and components," Kakodkar told PTI while reacting to the report submitted by FICCIs working group on civil nuclear energy on issues concerning utilities to the government of India last week.
"In fact, I told FICCI when they had come to my office to show the document Part I which emphasised on utilities that they have to correct their priorities and take up manufacturing of parts first and then export markets and later then after few years the utilities," Kakodkar said.
"This is not the time to look at the Atomic Energy Act (which is required mainly for Indian industries to take up utilities) but instead try and build up the supply chain and prepare for export to the neighbouring countries making India a nuclear hub of manufacturing and a supply chain king," Kakodkar said.
FICCI has constituted a working group on civil nuclear energy under the chairman ship of Dr S K Jain, CMD, Nuclear Power Corp of India Ltd (NPCIL) with members representing companies who are looking to engage in doing business in the Indian Nuclear sector.
"To bring in more focus into the deliberations of this group, smaller sub-groups were constituted to individually to look into issues concerning utilities, manufacturing and export markets," Dr Amit Mitra, Secretary, FICCI said.
Kakodkar said the industries can join with NPCIL to get them familiarise with the high work and safety culture which are mandatory for the N-industry.
"The utilities are simple power plants but there is a security, fuel cycle and safety culture issues and can not be done overnight. It takes time and very highly dedicated people are required for handling such hi-tech industry," he said.
He also asked how much experience these industries who wanted to take up nuclear power have experience in running thermal power plants.
Jain said, Department of Atomic energy has made it clear to the industry that manufacturing should be first priority for Indian industries to take advantage of this global civil nuclear cooperation.
Foreign direct Investment which is required for it is more than welcome but at the same time the priority on utilities should be the third in number.
The industry had to go step by step and have to achieve institutional strength.
In addition to developing the core strength over a period of time, the industry also should be ready to participate in regulatory procedures which will not allow such kind of flexibilities as they have in private sector like sudden Acquisition and Mergers (A&M), folding up the industry if it is found to be non-profitable and so on..
"All these things are strictly not available in the nuclear industry unlike the conventional ones," Jain said.
Therefore, those industries could move ahead with the country"s civil nuclear expansion should come together to evolve a mechanism for regulation.
Mitra had pointed out in the report that the purpose of this report they had prepared was to suggest the required legislative and policy interventions for an accelerated participation of the private sector, with a well defined qualification criterion so that only serious players participate in this strategic sector.
"We hope that the report, first of the series, will be useful to policy makers, thinkers and Indian industry, as a suggested approach to the opening of the civil nuclear sector in India, particularly as they deal with issues of security and employment potential," Mitra said.
"The second report on Issues in manufacturing will be submitted to the government soon," he said.