Chapter 2 Indian Perspective: Energy, Economics and Electricity

“The strongest of the species that survives, nor the most intelligent, but the one most responsive to change” -Charles Darwin

Chapter 2 Indian Perspective: Energy, Economics and Electricity

The chapter brings out the present and future analysis on Indian population, Gross Domestic Product (GDP), and per capita energy / electricity requirements. This chapter also discusses about the Indian nuclear energy programme and important milestones achieved. Details of present and proposed /planned nuclear plants including fuel waste management are also covered. National energy policy, important rules, acts, international treaties and conventions are also listed in this chapter. These form guidelines for the establishment of nuclear power plant. Environmental aspects related to nuclear energy are also coved in details. National perspective for energy, economics and electricity has been drawn mainly by available data analysis.

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2.1 General Overview India is vast country with diverse topographies and culture. It’s social fabric and heritage has been synthesized over decades that amalgamated to be born as a nation in 1947. With 3,214 Km from North to South and 2,993 Km from West to East, it encompasses 32, 87,263 Sq Km of area in South East Asia. The country is bounded by Himalayas in the north east, Arabian Sea in the west and Bay of Bengal towards the east. India is divided in seven general physiographic zones, namely, Northern Mountains, Indo Gangetic Plains, Central Highlands, Peninsular Plateau, East Coast, West Coast Bordering Seas and Islands. Major portion of the land mainly comprises of plateau. South-west monsoon during June to September, and north east monsoon during October to December are the main seasons for rainfall. Due to diverse physiographic regions and vast area, the annual pattern of rainfall is quiet uneven and uncertain. The tropic of cancer runs through the middle part of India. There are three seasons: Winter (October-January), Summer (February-May) and Monsoon (June- September). Post independence, India became Republic State on 26 January 1950. When India was born on political map of the world, it was a country with un- exploited potential natural resources. With a marginal population of 318.7 millions at the time of independence India transformed through an era with the blend of conflicts, research, development and inventions. Post independence India realized the need to develop the society, it was then imperative that basic needs like energy, education, water, roads would require an immediate attention. For this, the efforts began to formulate the strategy through, planning commissions, five year development plans etc. As per the details of the population shown in Table 2.1, 17.64 % growth is recorded between year 2001 and 2011. Per capita energy requirement of increased population invariably adds to total energy requirements (excluding industry requirements).Also, India constitutes significantly towards the worldwide energy demand commiserating to 17.5% of world population (Figure 2.1).

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2.2 Population index and GDP Table 2.1 India’s population as per year 2011 census

Rank State or union territory Population % of % Rural Pop Urban Pop. Sex (2011 Census) Population Growth ratio 2001–11

01 Uttar Pradesh 199,581,477 16.49% 20.1% 155,111,022 44,470,455 908 02 Maharashtra 112,372,972 9.28% 16.0% 61,545,441 50,827,531 946 03 Bihar 103,804,637 8.58% 25.1% 92,075,028 11,729,609 916 04 West Bengal 91,347,736 7.55% 13.9% 62,213,676 29,134,060 947 05 Andhra Pradesh 84,665,533 7.00% 11.1% 56,311,788 28,353,745 992 06 Madhya Pradesh 72,597,565 6.00% 20.3% 52,537,899 20,059,666 930 07 Tamil Nadu 72,138,958 5.96% 15.6% 37,189,229 34,949,729 995 08 Rajasthan 68,621,012 5.67% 21.4% 51,540,236 17,080,776 926 09 Karnataka 61,130,704 5.05% 15.7% 37,552,529 23,578,175 968 10 Gujarat 60,383,628 5% 19.2% 34,670,817 25,712,811 918 11 Orissa 41,947,358 3.47% 14.0% 34,951,234 6,996,124 978 12 Kerala 33,387,677 2.76% 4.9% 17,445,506 15,932,171 1084 13 Jharkhand 32,966,238 2.72% 22.3% 25,036,946 7,929,292 947 14 Assam 31,169,272 2.58% 16.9% 26,780,526 4,388,756 954 15 Punjab 27,704,236 2.30% 13.7% 17,316,800 10,387,436 893 16 Haryana 25,753,081 2.09% 19.9% 16,531,493 8,821,588 877 17 Chhattisgarh 25,540,196 2.11% 22.6% 19,603,658 5,936,538 991 18 Jammu and Kashmir 12,548,926 1.04% 23.7% 9,134,820 3,414,106 883 19 Uttarakhand 10,116,752 0.84% 19.2% 7,025,583 3,091,169 963 20 Himachal Pradesh 6,856,509 0.57% 12.8% 6,167,805 688,704 974 21 Tripura 3,671,032 0.30% 14.7% 2,710,051 960,981 961 22 Meghalaya 2,964,007 0.24% 27.8% 2,368,971 595,036 986 23 Manipur 2,721,756 0.22% 18.7% 1,899,624 822,132 987 24 Nagaland 1,980,602 0.16% -0.5% 1,406,861 573,741 931 25 Goa 1,457,723 0.12% 8.2% 551,414 906,309 968 26 Arunachal Pradesh 1,382,611 0.11% 25.9% 1,069,165 313,446 920 27 Mizoram 1,091,014 0.09% 22.8% 529,037 561,997 975 28 Sikkim 607,688 0.05% 12.4% 455,962 151,726 889 NCT Delhi 16,753,235 1.38% 21% 419,319 16,333,916 866 UT1 Po ndicherry 1,244,464 0.10% 27.7% 394,341 850,123 1,038 UT2 Chandigarh 1,054,686 0.09% 17.1% 29,004 1,025,682 818 UT3 Andaman & Nicobar 379,944 0.03% 6.7% 244,411 135,533 878 UT4 Dadra and Nagar 342,853 0.03% 55.5% 183,024 159,829 775 Haveli UT5 Daman and Diu 242,911 0.02% 53.5% 60,331 182,580 618 UT6 Lakshadweep 64,429 0.01% 6.2% 14,121 50,308 946 Total India 1,210,193,422 100% 17.64% 833,087,662 377,105,760 940 Source: http://censusindia.gov.in/PopulationFinder/Population_Finder.aspx

C h in a 2 1.9 2 . 7 2 . 4 2 . 3 1 9 .4 O th e r In d ia 2 0 .4 U S B ras il P akis tan Ban glaDe sh 1 7 .5 4 1 .2 N ige ria Russian Fe d Jap a n

Figure 2.1 Percentage of population (World) Source: http://www.prb.org/Publications/Datasheets/2011/world-population-data-sheet

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Three states, Bihar, Uttar Pradesh and Maharashtra have maximum population with considerable growth rate. The location and energy requirements of this section of population have important bearing on overall national energy demand. For example, to fulfill the electricity requirements of these areas, the power generating plants should be located in the vicinity. The issue of proximity of power plants is justified in Indian scenario for two reasons; firstly, too vast area for supply of electricity from single power station and secondly whopping 40% transmission losses. The location optimization of power generation industry (excluding renewable energy harnessing) in India requires a detailed perspective planning. Also, various factors like geographic, strategic, demographic, social impacts should also be considered. Decadal growth of Indian population is shown in Figure 2.2.

Figure 2.2 Percentage decadal growth in India (2001 Census) Source: www.mapsofindia.com

Figure 2.3 Per capita electricity consumption v/s per capita GDP (world) Sources: IMF, International Financial Statistics; International Energy Agency; World Bank,World Development Indicators; and IMF staff calculations .

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Figure 2.4 per capita energy consumption vs per capita GDP (OCED and Non OCED countries) Sources: IMF, International Financial Statistics; International Energy Agency; World Bank,World Development Indicators; and IMF staff calculations . Per capita electricity and /or energy consumption is directly proportional to per capita GDP. As shown in Figure 2.3 and 2.4, US has highest proportion followed by Organisation for Economic Cooperation and Development (OECD) countries. China and India are at the bottom of the list. As per the projections, if GDP of India has to overtake China by year 2050, it requires a sound and uninterrupted policy implementation towards achievement of desired GDP and per capita energy consumption. The comparison of GDP with respect to electricity is given in Table 2.2 Table 2.2 Gross Domestic Product (GDP) vs Electricity Consumption (India) Per Capita Growth Rate 2005 2006 2007 2008 2009 2010 2011 1990-2006 GDP (in Rupees) 402 428 443 506 610 655 774 12.57 Electricity 475 516 563 589 597 - - - (in KWh/y) Reference: http://www.world-nuclear.org/info/in 2.3 Supply of Electricity in India The history of power development in India began with the installation of a 130 kW hydro station at Darjeeling in 1899. This was followed by installation of a 100 kW steam generating unit in 1899 at Calcutta. Today the production and utilisation of energy have become one of the most important preconditions for socio- economic growth and welfare

32 Chapter 2 Indian Perspective: Energy, Economics and Electricity of the society. Electric Power Survey Committee, set up by Government of India from time to time is assessing demand for power in the country. The energy requirement and peak demand by the end of 2020 may well be in the vicinity of 1563 billion units and 260000 MW that warrants proper and long-term energy mix policy planning. For a large country like India, a major fraction of energy must come from domestic resources. From a long-term perspective, India has rather limited options in this regard. The existing reserves of coal in the country would be inadequate to meet an enhanced rate of energy consumption, comparable to world average per capita level. Solar and other renewable and non-conventional energy sources must be deployed to the fullest extent possible. However, to meet the large concentrated energy needs for industries and urban centers, one of the potential sustainable energy resources available in India, in a longer- term time frame, is nuclear energy. India, one of the fastest growing economies in the world, is facing an acute imbalance with respect to its energy requirements since last three decades. The disparity between demand and supply has been constantly diversifying. Changing dynamics of demographic strata, rising urbanization, socio-economic development and the desire for attaining and sustaining self-reliance further attribute to the energy imbalance. Availability vis-a vis its economic competitiveness and sustainability are major challenges of future. The requirement of primary energy increased at an average annual growth rate of 3.67% between 1991 and 2007, with the primary commercial energy requirement growing at an average annual growth rate of 4.93% during the same period. It is a matter of concern that the annual per capita consumption of electricity in India, at about 750 kWh (including captive power generation) is one of the lowest in the world. Large numbers of villages in India are still deprived of electricity supply till date. To increase installed power generation capacity by 78,700 MW by 2012, it must also facilitate an expansion of the transmission network and inter-regional capacity to transmit power. 2.4 Indian Power Generation Statistics Region wise power generation statistics of various resources are given in Table 2.3 and Figure 2.5.

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Table 2.3 Region wise power generation (year 2011) in MW

S Region Thermal Total Nuc Hyd Renew Captv Total No Coal Gas Dsl 1 Northern 24232.5 4134.75 12.99 28380.25 1620 13822.75 3165.55 0 46988.55 2 Western 30999.5 7903.81 17.48 38916.79 1840 7447.5 5357.96 0 53562.25 3 Southern 19882.5 4690.78 939.32 25512.6 1320 11299.08 9341.67 0 74473.3 4 Eastern 18747.88 190 17.2 18955.08 0 3882.12 359.64 0 23196.84 5 NE 60 787 142.74 989.74 0 1116 223.6 0 2329.34 6 Island 0 0 70.02 70.02 0 0 6.1 0 76.12 All India 93918.38 17706.35 1199.7 112824.5 4780 36567.4 18454.5 19509 193135.4 % of Total 48.62 9.16 0.62 58.41 2.48 19.45 9.55 10.10 100 Generation Source: http://www.renewableenergymagazine.com/

4 00 0 0 Therm al 3 50 0 0 N uclear 3 00 0 0 Hydel 2 50 0 0 2 00 0 0 Renew able 1 50 0 0 C ap tive 1 00 0 0 5 0 0 0 0 Northenn Western Southern Eastern NE Island

Figure 2.5 Region wise power generation wrt various resources (All figures in MW up to 31 March 2011) Source: http://www.renewableenergymagazine.com/ 2.5 Energy Demand and Development India [1] has the potential to show the fastest growth over the next 30 to 50 years. Growth rate could be higher than 5 percent over the next 30 years and close to 5 percent as late as 2050 if development proceeds successfully.” Growth in capital stock together with growth in factor productivity will yield output growth of 5.4 percent. Over the next 20 years, the working age population is projected to grow at 1.9 percent per year. If educational attainment and participation rates

34 Chapter 2 Indian Perspective: Energy, Economics and Electricity remain unchanged, labor growth will contribute another 1.3 percent, yielding an aggregate growth rate of 6.7 percent per year, or a per capita growth rate of 5.3 percent. This is a lower bound estimate and, even so, would be significantly greater than the per capita growth rate of 3.6 percent achieved in the 1980s and 1990s. Over a 40-year period, a 5.3 percent growth rate [2] would increase the income of the average person nearly 8-fold.” Growth in economy is made possible by several inputs, the two most important being energy and human resource. Energy is the driving factor for growth. Associated with human labour, it increases productivity in agriculture, industry as well as in services. To sustain the growth rate in economy, energy supply has to grow in tandem. For a large country like India, with population exceeding one billion and rapid economic growth rate, no single energy resource or technology constitutes a single solution to address all issues related to availability of fuel supplies, environmental impact, particularly, climate change, and health externalities. It is imperative that all non-carbon emitting resources become an integral part of an energy mix – as diversified as possible – to ensure energy security during the present century. Available sources are low carbon fossil fuels, renewable and nuclear energy and all these should be subject of increased level of research, development, demonstration and deployment. An exhaustive study under the aegis of Dr Anil Kakodkar, then Chairman, Atomic Energy Commission (AEC) was conducted at Department of Atomic Energy (DAE) with the aim to quantify the likely growth in energy demand in India, and the role of nuclear energy in the decades to come. The salient aspects are as under. The ultimate aim of the study was to formulate a strategic plan to meet the projected role to be played by nuclear energy [3]. Energy intensity of GDP, defined as the ratio of the energy consumption to the GDP, has been observed to follow a certain trend worldwide. Below a certain level of development, growth results in increase in energy intensity. With further growth in economy, the energy intensity starts declining. Based on data by International Energy Agency [4], overall energy

35 Chapter 2 Indian Perspective: Energy, Economics and Electricity intensity of GDP in India is the same as in OECD countries, when GDP is calculated in terms of the Purchasing Power Parity (PPP). Energy-GDP elasticity, the ratio of the growth rates of the two, remained around 1.3 from early fifties to mid-seventies. Since then it has been continuously decreasing. Electricity is the most important component of the primary energy. Electricity-GDP elasticity was 3.0 till the mid-sixties. It has also decreased since then. Reasons for these energy– economy elasticity changes are: demographic shifts from rural to urban areas, structural economic changes towards lighter industry, impressive growth of services, increased use of energy efficient devices, increased efficiency of conversion equipments and inter-fuel substitution with more efficient alternatives. Based on the CMIE data [5], the average value of the Electricity-GDP elasticity during 1991-2000 has been calculated to be 1.213 and that of the primary energy- GDP elasticity to be 0.907. Estimating the future GDP growth rates of India taking the primary energy intensity fall to be 1.2 percent per year [6], extrapolating the electricity intensity fall from past data till 2022 and subsequently a constant fall of 1.2 percent year, the growth rates of the primary energy and electrical energy, have been estimated in table 2.4. Table 2.4 Comparison of primary energy and electricity growth Period Primary Energy Electricity Percent Annual Growth Percent Annual Growth 2002 -2022 4.6 6.3 2022-2032 4.5 4.9 2032 -2042 4.5 4.5 2042 -2052 3.9 3.9 These rates are the basis of the projections reported [3]. It may be recalled that historical primary energy and electricity growth rates during 1981- 2000 were 6 percent per year and 7.8 percent per year respectively. Based on the growth rates given in the above table, per capita electricity generation would reach about 5300 kWh per year in the year 2052 and total about 8000 TWh. This would correspond to an installed capacity of around 1300 GWe. Annual primary energy consumption would increase from about 13.5 EJ in 2002-

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03 to about 117 EJ in 2052-53. By then the cumulative energy expenditure will be about 2400 EJ. The present status of various fuel-resources in India is given in the table 2.5 Table 2.5: Primary energy & electricity resources Electricity Amount Thermal energy potential EJ TWh GWYr GWe-Yr Fossil Coal 38 -BT 667 185,279 21,151 7,614 Hydrocarbon 12 -BT 511 141,946 16,204 5,833 Non-Fossil Nuclear Uranium-Metal 61,000 -T In PHWRs 28.9 7,992 913 328 In Fast breeders 3,699 1,027,616 117,308 42,231 Thorium -Metal 2,25,000 -T In Breeders 13,622 3,783,886 431,950 155,502 Renewable Hydro 150 -GWe 6.0 1,679 192 69 Non-conventional renewable 100 -GWe 2.9 803 92 33 Assumptions for potential calculations Fossil 1. Complete Source is used for calculating electricity potential with a thermal efficiency of 0.36. 2. Calorific Values: Coal: 4,200 kcal/kg, Hydrocarbon: 10,200 kcal/kg. 3. Ministry of Petroleum and Natural Gas has set strategic goals for the next two decades (2001-2020) of ‘doubling reserve accretion’ to 12 BT (Oil + Oil equivalent gas) and “improving recovery factor’ to 40%. Considering the fact that exploration is a dynamic process and India is one of the less explored countries, reference assumes that cumulative availability of hydrocarbons up to 2052 will be 12 BT. Non-Fossil Thermal energy is the equivalent fossil energy required to produce electricity with a thermal efficiency of 0.36.

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Nuclear 1. PHWR burn-up = 6,700 MWd/T of U-oxide, thermal efficiency 0.29 2. It has been assumed that complete fission of 1kg of fissile material gives 1000 MWd of thermal energy. Fast reactor thermal efficiency is assumed to be 42%. Fast breeders can use 60% of the Uranium. This is an indicative number. Actual value will be determined as one proceeds with the programme and gets some experience. Even if it is half of this value the scenario presented does not change. 3. Breeders can use 60% Thorium with thermal efficiency 42%. At this stage, type of reactors wherein thorium will be used are yet to be decided. The numbers are only indicative. Hydro 1. Name plate capacity is 150 GWe. 2. Estimated hydro- potential of 600 billion kWh and name plate capacity of 150,000 MWe gives a capacity factor of 0.46. Non-conventional renewable 1. Includes: Wind 45 GWe, Small Hydro 15 GWe, Biomass Power/ Co-generation 19.5 GWe and Waste to Energy 1.7 GWe etc. 2. Capacity factor of 0.33 has been assumed for potential calculations. The domestic mineable coal (about 38 BT) and the estimated hydrocarbon reserves (about 12 BT) together may provide about 1200 EJ of energy. To meet the projected demand of about 2400 EJ, all options including using the known fossil reserves will require to exploit efficiently, looking for increasing fossil resource base, competitive import of energy (including building gas pipe lines whenever and wherever permitted based on geo-political considerations and found feasible from techno-commercial considerations), harnessing full hydro potential for generation of electricity and increasing use of non-fossil resources including nuclear and non- conventional. Energy statistics for the same is given in Table 2.6 India needs as much additional electricity as produced today to provide a reasonable standard of living (~5000 kWh per capita) in the developing world. Table 2.6 and 2.7 gives energy statistics and production vs capacity. Table 2.8 gives

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energy related ratios.

Table 2.6 Energy statistics Average annual

growth rate (%) 1990 2000 2001 2002 2003 2004 2005 (4) 2006 (4) 1990 2000 – – 2006 2000 Energy consumption - Total (1) 11.34 16.14 16.51 17.08 17.64 18.69 18.89 20.29 3.60 3.99 - Solids (2) 7.68 7.68 9.37 9.64 9.87 10.29 11.10 11.26 2.01 3.29 - Liquids 2.50 4.54 4.60 4.98 5.00 5.14 5.09 6.14 6.15 5.16 - Gases 0.39 1.07 1.14 1.20 1.22 1.22 1.22 1.22 10.62 2.21 - Primary electricity (3) 0.23 0.23 0.33 0.34 0.31 0.34 0.44 0.50 3.68 4.91 Energy production - Total 10.12 12.57 12.73 13.00 13.49 14.06 13.51 14.64 2.20 2.71 - Solids 7.53 8.96 9.09 9.36 9.72 10.12 10.09 10.30 1.75 2.55 - Liquids 1.43 1.38 1.37 1.41 1.42 1.45 1.37 1.45 -0.36 0.83 - Gases 0.39 1.13 1.14 1.20 1.22 1.22 1.22 1.22 11.22 1.29 - Primary electricity (3) 0.23 0.23 0.33 0.34 0.31 0.34 0.38 0.50 3.68 7.17 Net import

(Import - Export) - Total 1.22 3.57 3.78 4.08 4.15 4.63 4.73 5.65 11.33 7.95 - Solids 0.15 0.41 0.55 0.51 0.57 0.94 1.01 0.96 10.58 15-.23 - Liquids 1.07 3.16 3.23 3.57 3.58 3.69 3.72 4.69 11.44 6.80 - Gases N/A N/A N/A N/A N/A N/A N/A N/A

Years represent financial years from 1st April of the year to 31st March of the next year (1) Energy consumption = Energy Production + Net Import (Import - Export) (2) Solid Fuels include coal, lignite and estimated commercial wood. The consumption of wood is assumed to remain constant at 3.134 EJ. Reference: S.K. Varma, "Coal- A predominant option" Proc.Power in the New Millenium: Palns & Strategies. Indian Nuclear Society, August 31-September 2,1999 (3) Primary Electricity = Hydro + Geothermal + Nuclear + Wind (4) Annual Reports 2004-05 of the Ministries of Power, Coal, Petroleum & Natural

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Gas, Ministry of Renewable Energy Sources and Department of Atomic Energy, Government of India. (5) Solid Fuel, except commercial wood, liquid and gas data is for 9 Months (Apr - Dec 2005) Table 2.7 Production vs capacity Average annual

growth rate (%) 1990- 2000- 1990 2000 2001 2002 2003 2004 2005 2006 2000 2006 Electricity production (TW.h) - Total (1) 264.32501.04517.29 533.8 560.9 591.23 622.16 670.50 6.60 4.98 - Thermal 186.54 408.2 422 448.6 466.6 486.10 497.21 527.55 8.15 4.37 - Hydro 71.64 74.36 74.00 63.83 73.8 84.50 103.05 113.36 0.37 7.28

- Nuclear 6.14 16.9 19.32 19.24 17.9 16.85 17.24 18.61 10.66 1.62 - Wind 0 1.58 1.97 2.13 2.6 3.78 4.66 7.97 - 30.96 Bhutan Import 1.76 3.01 Capacity of electrical plants (GWe) - Total 66.08 102.75106.43109.71 114.53 118.17 122.06 131.16 4.51 4.15 - Thermal 45.77 73.61 75.94 78.34 79.83 80.90 82.04 85.20 4.87 2.47 - Hydro 18.75 25.15 26.26 26.91 29.5 30.90 32.28 34.48 2.98 5.40 - Nuclear 1.56 2.72 2.72 2.72 2.72 2.77 3.31 3.90 5.72 6.19 - Wind 0 1.27 1.51 1.74 2.48 3.60 4.43 7.58 - 34.68

Years represent financial years from 1 st April to 31 st March of the next year. Electrical capacities are at the end of the financial years. (1) Electricity from Utilities only. Losses not included. Sources: Annual Reports 2005-06, 2006-07 of the Ministries of Power, Coal, Petroleum& Natural Gas, Ministry of Renewable Energy Sources, Central Electricity Authority and Department of Atomic Energy, Government of India.

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Table 2.8. Energy related ratios

1990 2000 2001 2002 2003 2004 2005 2006 Energy consumption per 13 16 16 16 16 17 17 18 capita (GJ/capita) Electricity per capita 314 488 496 505 522 542 563 604 (kWh/capita) (1) Electricity Production/ 28 37 37 37 39 38 39 39 Energy Consumption (%) (2) Nuclear/Total electricity 2 3 4 4 3 3 3 3 (%) Ratio of External 11 22 23 24 22 25 25 28 dependency (%) Load factor of electricity plants - Total (%) 54 ------Thermal 44 69 70 72 73 74 75 77 - Hydro 44 ------Nuclear 54 82 83 90 90 88 (3) 89(3) 89 (3)

A year represents a financial year from 1 st April of the year to 31 st March of the next year. (1) Electricity from utilities only. However electricity from captive power plants is a significant component of the total electricity generation and including that per capita consumption is above 600 kWh. (2) Net import/Total energy consumption. (3) Average Annual Availability Factor. Source: Annual Reports 20005-06, Ministries of Power and New and Renewable Energy, Department of Atomic Energy and "Energy" by Centre for Monitoring Indian Economy Pvt. Ltd. May, 2003. IAEA Energy and Economic database. India alone would need around 40% of present global electricity generation to be added to reach average 5000 kWh per capita electricity generation Even after the growth projected by the study, there will be shortages and the country will continue to import energy, as present practice. The study also points out that it is necessary to develop metallic fuel for the fast reactors during the next one decade. Metallic fuels have short doubling time and can ensure a fast enough growth in nuclear installed capacity. Assuming that

41 Chapter 2 Indian Perspective: Energy, Economics and Electricity the fast reactors to be set up after 2020 are based on metallic fuel, the study calculates the maximum possible contribution that can be made by nuclear till the middle of the century. Hydro and non-conventional potential being limited, the remaining demand has to be met by the fossil fuels. The results indicate that it is possible to have one quarter of the contribution coming from nuclear by the middle of the century, if the fast reactor growth follows the course outlined. The Indian population corresponds to one sixth of world population. However, the carbon dioxide emission from India is only around 4% of the global emissions. On the basis of current energy mix and the present day technologies for electricity production, the CO 2 emission from India alone could become as much as half of the present level of global emission in a few decades from now. A larger share of nuclear power in India beyond what would be realized through indigenous efforts would, in principle, contribute to further avoidance of CO 2 emission which otherwise would be inevitable. 2.6. Analysis of Primary Energy During fiscal year 2002-03, the total available energy in India was 18.96 EJ, out of which 15 EJ (79 %) was domestic and 3.96 was imported (21 %). Out of 15 EJ, 13.46 EJ was commercial energy and 5.49 EJ was non commercial component. . India was able to consume only 12.9 EJ of commercial energy, which was merely 3.4 % of worlds total energy consumption which is 382 EJ. (US constituted 24.5 % out of 382 EJ). India has a share of 16.6 % in worlds population density where as US merely accounts for 4.6 %. This has resulted in very low per capita energy consumption of 1/5 of worlds and 1/26 of US average respectively. From 2005 to 2030 the worlds marketed energy consumption is projected to increase by 50%. Total energy demand in Asian countries will increase by 85% as compared to 19% in rest of the countries 2.7 Estimated Potential of Various Energy Resources Based on a systematic survey carried out, the hydro electric potential in the country is estimated at 600 billion kilowatt hours annually corresponding to a name plate capacity of 150,000 MWe. In year 2007, the total installed hydro power

42 Chapter 2 Indian Perspective: Energy, Economics and Electricity capacity with utilities was about 34476 MWe (i.e. about 20% of the total potential). A capacity addition of about 30,000 MWe has been planned over the XI and XII Plans (2007-2012-2017). More than 70% of the total hydro potential in the country is located in the northern and north-eastern regions put together. Coal, oil, natural gas and lignite are used for thermal power generation. As on January 1, 2007, the geological reserves of coal are estimated to be about 255 billion tonnes out of which the proven reserves are about 96 billion tonnes and economically mineable reserves are 52 billion tonnes. Proven lignite reserves suitable for power generation are estimated at about 4.2 billion tonnes and are being exploited for this purpose. As on January 1, 2007 recoverable reserves of crude oil are placed at about 756 million tonnes and of natural gas at about 1075 billion cubic meters. Uranium reserves in the country are estimated to be about 95,000 tonnes (metal). It does not include reserves in speculative category. After accounting for various losses in mining, milling and fabrication, the net uranium available for power generation is estimated to be about 61,000 tonnes (metal). One of the largest resources of thorium in the world is contained in Monazite deposits (about 8 million tonnes) in India mainly along the Indian seacoast. Out of this, about 4 million tonnes is considered exploitable of which 70% is considered mineable containing about 2,25,000 tonnes of thorium metal. The estimated power generation potential from non-conventional renewable energy resources is about 100,000 MW. This includes 45,000 MW from wind, 15,000 MW from small hydro, 19,500 MW from bio-mass/biomass- cogeneration, 2,700 MW from urban and industrial waste etc. Thermal applications of such resources include solar thermal systems, biogas plants, improved biomass cooking stoves etc. Table 2.9 gives all India installed capacity (Year 2008) and Table 2.10 denotes Indian states by households having electricity. 2.8 Energy Policy The Integrated Energy Policy[9] of the Government of India aims at ensuring in a judicious manner, adequate energy supplies at an optimum cost,

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achieving self-sufficiency in energy supplies and protecting the environment from the adverse impact of utilizing energy resources. Table 2.9All India installed capacity (Year 2008)

Mode wise Break up Ownership Grand Region Thermal Sector Total Nuc Hydro Res Total Coal Gas Diesel Thermal State 11527.5 1231.2 14.99 12773.69 0 6615.15 571.87 19960.71 Private 0 0 0 0 0 786 699.41 1485.41 Northern Central 7050 2311.99 0 9361.99 1180 5498 0 16039.99 Sub Total 18577.5 3543.19 14.99 22135.68 1180 12899.15 1271.28 37486.11 State 15325.5 1430.72 17.28 16800.5 0 5234.5 311.89 22346.89 Private 2540 1658 0.2 4198.2 0 444 2698.95 7341.05 Western Central 5860 3512 0 9372 1840 1520 0 12732 Sub Total 23725.5 6600.72 17.48 30370.7 1840 7198.5 3010.74 42419.94 State 8282.5 735.8 362.52 9380.82 0 10646.18 846.32 20873.32 Private 510 2500.5 576.8 3587.3 0 0 5374.37 8961.67 Southern Central 7890 350 0 8240 1100 0 0 9340 Sub Total 16682.5 3586.3 939.32 21208.12 1100 10646.18 6220.69 39174.99 State 6508.5 100 17.06 6625.56 0 3144.93 200.36 9970.85 Private 1441.38 0 0.14 1441.52 0 0 0.05 1441.57 East Central 7710 90 0 7800 0 204 0 8004 Sub Total 15659.88 190 17.2 15867.08 0 3348.93 200.41 19416.42 State 330 372 142.74 844.74 0 256 145.98 1246.72 North Private 0 24.5 0 24.5 0 0 0.03 24.53 East Central 0 375 0 375 0 860 0 1235 Sub Total 330 771.5 142.74 1244.24 0 1116 146.01 2506.25 State 0 0 50.02 50.02 0 0 5.25 55.27 Private 0 0 20 20 0 0 0.86 20.86 Island Central 0 0 0 0 0 0 0 0 Sub Total 0 0 70.02 70.02 0 0 6.11 76.13 State 41974 3869.72 604.61 46475.33 0 25896.76 2081.67 74453.76 Private 4491.38 4183 597.14 9271.52 0 1230 8773.57 19275.09 All India Central 28510 6638.99 0 35148.99 4120 8082 0 47350.99 Total 74975.38 14691.71 1201.75 90895.84 4120 35208.76 10855.24 141079.84 Reference: http://www.powermin.nic.in The main elements of the Energy Policy are: • Accelerated exploitation of all domestic conventional energy sources, viz. coal, hydro, oil/gas and nuclear power in an environmentally sustainable manner. • Energy conservation and management with a view to increasing energy productivity.

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• Optimizing the utilisation of existing capacity in the country by using high efficiency machines and processes in the entire gamut of energy related operations like mining, generation, transmission, industrial processes, transport, etc. • Adoption of ‘clean coal’ and related technologies to contain Green House Gas (GHG) emissions. • Accelerated development of nuclear and hydro-electricity. Table 2.10 Indian states by households having electricity Rank State Electricity (%) 1 Himachal Pradesh 98.4 2 Goa 96.4 3 Punjab 96.3 4 Jammu and Kashmir 93.2 5 Mizoram 92.3 6 Sikkim 92.1 7 Haryana 91.5 8 Kerala 91 9 Andhra Pradesh 89.3 10 Gujarat 89.3 11 Tamil Nadu 88.6 12 Karnataka 88.4 13 Manipur 87 14 Maharashtra 83 .5 15 Nagaland 82.9 16 Uttaranchal 80 17 Arunachal Pradesh 76.9 18 Madhya Pradesh 71.4 19 Chhattisgarh 71.4 20 Meghalaya 70.4 21 Tripura 68.8 22 West Bengal 60.0 23 Rajasthan 52.5 24 Orissa 45.4 25 Uttar Pradesh 42.8 26 Jharkhand 40.2 27 Assam 38.1 28 Bihar 27.7 ** Whole INDIA 67.9 Reference: http://www.powermin.nic.in • Development and exploitation of renewable sources of energy including bio-fuels and fuel plantations to meet the energy requirement of both urban and rural communities.

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• Intensification of research and development activities in the field of energy, with infusion of sufficient capital by setting up a "National Energy Fund”. • Organisation of training for personnel engaged at various levels in energy sector. 2.9 National Energy Vision National Energy Vision was published by then President of India, Dr APJ Abdul Kalam, which state that, “Energy Independence has to be our Nation’s first and highest priority. We must achieve COMPREHENSIVE ENERGY SECURITY by 2020 through an Energy Asset Profile that allows our economy to function with necessary abandon. We must concurrently strive to achieve ENERGY INDEPENDENCE by 2030 through accretions to our traditional stockpiles and strategic reserves as also skilful use of alternate and renewable sources of energy” 2.10. Electricity Sector India ranks fifths in the world in terms of total installed electricity generation capacity. Electricity demand as per CASR is growing at the rate of 7% per annum. India still remains one of the lowest in terms of per capita power consumption in the world. Total electricity demand in India is expected to cross 9, 50,000 MW by 2030. Electricity is a concurrent subject as per the constitution of India implying that both the parliament and the state legislature have the authority to legislate on the subject. The structure of the electricity sector derives its character and composition from the Indian constitution and till recently was mainly defined by the following Acts: • Indian Electricity Act of 1910 legislated over the supply and use of electrical energy in India. • Indian Electricity (Supply) Act of 1948 enacted in order to secure a fully coordinated development of electricity on a regional basis. • Electricity Regulatory Commission Act, 1998 had been enacted with a view to providing for the establishment of Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERC). For speedy reforms in the power sector with the goal of electrifying all the

46 Chapter 2 Indian Perspective: Energy, Economics and Electricity villages by 2007 and all the households by 2012 and to modernise the sector, the Electricity Bill 2003 has been enacted on June 10, 2003. 2.11 Electricity Act 2003 This act[10] consolidates all electricity legislations (Central and State) into one comprehensive binding act. It seeks to create a liberal framework of development for the power sector by distancing Government from regulation. The objectives of the Act are "to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto." The salient features of the Act are as follows: • The Central Government to prepare a National Electricity Policy in consultation with State Governments. (Section 3) • Thrust to complete the rural electrification and provide for management of rural distribution by Panchayats (local governing bodies), Cooperative Societies, non- Government organisations, franchisees etc. (Sections 4, 5 & 6) • Provision for licence free generation and distribution in the rural areas. (Section 14) • Generation being delicensed and captive generation being freely permitted. Hydro projects would, however, need clearance from the Central Electricity Authority. (Sections 7, 8 & 9) • Transmission Utility at the Central as well as State level, to be a Government company - with responsibility for planned and coordinated development of transmission network. (Sections 38 & 39) • Provision for private licensees in transmission and entry in distribution through an independent network, (Section 14) • Open access in transmission from the outset. (Sections 38-40)

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• Open access in distribution to be introduced in phases with surcharge for current level of cross subsidy to be gradually phased out along with cross subsidies and obligation to supply. SERCs to frame regulations within one year regarding phasing of open access. (Section 42) • Distribution licensees would be free to undertake generation and generating companies would be free to take up distribution businesses. (Sections 7, 12) • State Electricity Regulatory Commission is a mandatory requirement. (Section 82) • Provision for payment of subsidy through budget. (Section 65) • Trading, a distinct activity is being recognised with the safeguard of the Regulatory Commissions being authorised to fix ceilings on trading margins, if necessary. (Sections 12, 79 & 86) • Provision for re-organisation or continuance of SEBs. (Sections 131 & 172) • Metering of all electricity supplied made mandatory. (Section 55) • An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs. (Section 111) • Provisions relating to theft of electricity made more stringent. (Section 135-150) • Provisions safeguarding consumer interests. (Sections 57-59, 166) Ombudsman scheme (Section 42) for consumer’s grievance redressal. The Ministry of Power, Government of India (GOI), is responsible for the administration of the above act and to undertake such amendments to the Act, as may be necessary from time to time, in conformity with the policy objectives. The electricity generating companies in the Central Sector are: • The National Thermal Power Corporation (NTPC) responsible for construction and operation of fossil thermal power plants in the various power regions under the administrative control of Ministry of Power; • The National Hydroelectric Power Corporation (NHPC) responsible for establishing and operating regional hydroelectric power plants under the administrative control of Ministry of Power; • North Eastern Electric Power Corporation (NEEPCO) responsible for establishing and operating thermal and hydro power plants in the North Eastern Region under the administrative control of Ministry of Power; • Neyveli Lignite Corporation (NLC) responsible for establishing and operating

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thermal power plants based on lignite reserves at Neyveli in the Southern region, under the administrative control of Ministry of Coal; • Nuclear Power Corporation of India Ltd. (NPCIL) responsible for nuclear power generation under the administrative control of the Department of Atomic Energy (DAE). • A new company Bhartiya Nabhikiya Vidyut Nigam Ltd. (BHAVINI) was incorporated to set up fast reactors in October 2003. This is also under the administrative control of the DAE. • Two statutory bodies i.e. the Damodar Valley Corporation (DVC) and the Bhakra Beas Management Board (BBMB) are also under the administrative control of Ministry of Power. • The generation through non-conventional renewable energy sources comes under the administrative control of the Ministry of Non-Conventional Energy Sources, GOI. • There are also non-utilities with captive generating capacities. • The Rural Electrification Corporation (REC) under the administrative control of Ministry of Power, provides financial assistance to the programmes of rural electrification. • The Power Finance Corporation (PFC) provides term finance to projects in the power sector. • The PTC (Power Trading Corporation) is an entity established to serve as a single point of contract for entering into power purchase agreements with independent power producers on the one hand and the consumers or state utilities on the other. The Government of India has also taken up two joint ventures: • Nathpa-Jhakri Power Corporation (NJPC), responsible for the execution of the Nathpa-Jhakri Hydroelectric Project which is being developed as a joint venture of the Central Government and the Government of Himachal Pradesh. • Tehri Hydro Development Corporation (THDC), a joint venture of the Central Government and the Government of Uttar Pradesh to execute the Tehri Hydro Power Complex. India is divided into five Electricity Regions; namely, Northern, North Eastern,

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Eastern, Western and Southern. For each region, a Regional Electricity Board is constituted. This is essentially to provide guidelines for operation of the grid, co- ordinate exchanges of power between states and regions. The Regional Electricity Board also reviews progress of schemes and plan generation schedule. The Power Grid Corporation of India Limited (PGCIL) has established and operates Regional and National Power Grids to facilitate transfer of power within and across the Regions with reliability, security and economy on sound commercial principles. 2.12. Electricity Policy and Decision Making Process The Ministry of Power is concerned with perspective planning, policy formulation, processing of projects for investment decision, monitoring of projects, training and manpower development. The National Electricity Policy (as indicated in the Electricity Act 2003) has been notified in 2005. Apart from overcoming endemic shortages in energy and peak power requirements, the policy seeks to increase the per capita availability to 1000 units by 2012. It also aims to effect the financial turnaround and commercial viability of the electricity sector. As part of this policy, the ministry of power has embarked on setting up of eight "ultra mega power projects" of 4000MW capacity each in various parts of the country. Of these, letters of intent for two plants at Sasan (Madhya Pradesh) and Mundra (Gujarat) have already been issued. The National Tariff Policy to provide guidelines to the regulators for fixing tariffs for generation, transmission and distribution, has been finalised in January 2006. The demand for electricity is assessed periodically at the national level by CEA. Based on the generation expansion planning studies, CEA prepares short, medium and long-term national power plans. Based on this, power schemes are conceived and implemented by the different agencies. Planning of schemes are on the basis of the national five-year plans and annual plans through the national Planning Commission. Expert groups scrutinize the formulation of the five-year plan before it is finalized and approved.

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In line with the five-year plans, annual plans are implemented. There are different Ministries involved in the Power Sector such as Ministry of Power (being the main), Department of Atomic Energy, State Power Ministries and the Ministry of New and Renewable Energy. Matching plans are prepared by these agencies for implementation in line with the national plans. Respective Ministries/Departments exercise administrative control of the functions relating to their areas. Individual power schemes go through the process of techno- economic scrutiny in terms of the procedures of the administrative Ministry before it is approved for implementation. The Department of Atomic Energy is responsible for setting up nuclear power generation schemes including the techno-economic appraisal. Transmission schemes for nuclear power generation are implemented by PGCIL as per schemes approved by CEA on a regional basis. The overall integration of all the activities is achieved through the planning process in assessment of demands, decision on the expansion planning strategies, energy policy and national five-year/annual plans. Several policy initiatives have been taken and incentives have been provided to widen the scope of private sector participation in the India's electricity sector. With the enactment of the Electricity Act 2003 and its implementation through various important notifications the electricity sector is rapidly evolving. 2.13 Nuclear Power: India 2.13.1. Historical Development and Nuclear Power Organisational Structure 2.13.1.1. Overview A major step in the formulation of the Atomic Energy Programme in India was the passing of the Atomic Energy Act in 1948 (subsequently replaced by the Atomic Energy Act of 1962). Under the provisions of the Atomic Energy Act, the Atomic Energy Commission (AEC) was constituted in 1948. Uranium exploration and mining required for the nuclear power programme were some of the initial activities that were undertaken. The Department of Atomic Energy (DAE) of the Government of India (GOI) was established in August 1954. The Department is responsible for execution of

51 Chapter 2 Indian Perspective: Energy, Economics and Electricity policies laid down by the AEC. It is engaged in research, technology development and commercial operations in the areas of Nuclear Energy, related High Technologies and supports basic research in nuclear science and engineering. The key policy has been self-reliance. The importance of developing a strong research and development base for the nuclear power programme was recognized early on. Thus, a decision was made, in 1954, to set up a research and development centre, now called Bhabha Atomic Research Centre (BARC) at Trombay. Research reactors APSARA (1956), CIRUS (1960), and DHRUVA (1985) and critical facilities were set up at the Centre. A number of additional facilities and laboratories were built at the Centre to support the nuclear power programme and related nuclear fuel cycle activities. The Centre extends the necessary R&D support to the nuclear power programme and associated fuel cycle activities. In 1947 when India became independent, its installed electric power capacity was only about 1.5 GW (e), which has now grown to about 122GW (e). Considering the population growth, low per capita electricity consumption and need for increasing the share of commercial energy sources, large-scale production of electric power was necessary. By the late 1950's, AEC had worked out the economics of generating electricity from atomic power reactors. Based on this study, the Government decided to set up a series of nuclear power plants at locations away from coalmines and nearer to load centres. The strategy adopted by the Indian nuclear power programme is to use the country's modest uranium and vast thorium resources. In line with this strategy, a three-stage programme is envisaged. The first stage is based on setting up of pressurized heavy water reactors (PHWRs) using indigenously available natural uranium producing electricity and plutonium and is in commercial domain. This is being followed by the second stage by plutonium fuelled fast breeder reactors (FBRs) producing electricity and more plutonium and uranium233 from thorium. The third stage of reactors will be based on thorium cycle producing electricity and more uranium233. The design of a 300 MW Advanced Heavy Water Reactor is completed and construction of a critical facility will shortly be taken up. The three

52 Chapter 2 Indian Perspective: Energy, Economics and Electricity stage process described above will enable the country to make efficient use of domestic uranium and thorium contributing significantly to attain true energy security beyond 2050. The first indigenously designed and fabricated Tokamak ADITYA was commissioned by the Institute of Plasma Research (IPR) in 1989. Experiments on edge plasma fluctuations, turbulence and other related works have been conducted A Superconducting Steady State Tokamak (SST-1) is to be operational shortly which will enable advanced research in the Physics of Plasmas and associated technologies. This experience would be useful in the ITER (International Thermo-nuclear Experimental Reactor) Project, of which India is a partner. 2.13.1.2 Milestones Table 2.11indicated salient milestones of the Indian Atomic Energy Programme Table 2.11: Important milestones of AEC (excluding power plant operations) January 19, 2011 - Unit 4 of Kaiga synchronised to grid. December 7, 2010 - India and France sign agreement for fuel supply March 29, 2010 - India and USA complete negotiations on "arrangements and procedures" for reprocessing U.S.-obligated spent nuclear fuel March 12, 2010 - India & Russia agree on a Roadmap for construction of reactors of Russian design in India February 11, 2010 - India and United Kingdom sign joint declaration on nuclear cooperation September 30, 2008 - India and France sign agreement on cooperation for peaceful uses of Nuclear Energy April 7, 2008: Low power critical facility at Bhabha Atomic Research Centre (BARC) attains first criticality. September 2007 - Bhabha Atomic Research Centre (BARC) and Electronics Corporation of India Limited (ECIL) develop a 32 metre diameter Indian Deep Space Antenna System – IDSN 32 for providing steering, tracking and science data reception support for ISRO’s Moon Mission – Chandrayaan – I. 1 August, 2007 - India and USA sign agreement on cooperation for peaceful uses of Nuclear Energy November 21, 2006: India signs agreement to join International Thermo-nuclear Experimental Reactor (ITER) project. December 17, 2005: Centre for Advanced Technology (CAT) Indore dedicated in the memory of Dr. Raja Ramanna. The centre renamed as Raja Ramanna Centre for Advanced Technology (RRCAT). December 5, 2005: India is admitted to the International Thermo-nuclear Experimental Reactor (ITER) venture. Other parties in this venture are China,

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European Union, Japan, South Korea and United States. November 09, 1990: Research Reactor PURNIMA-III, a Uranium-233 fueled reactor attains criticality. December 18, 1985.- Reactor Research centre is named as Indira Gandhi Centre for Atomic Research (IGCAR) October 18, 1985: FBTR at IGCAR attains criticality. August 08, 1985: Research Reactor DHRUVA (100 MWt) attains criticality. It attains full power on January 17, 1988. Februa ry 19, 1984: Centre for Advanced Technology (CAT) at Indore (Madhya Pradesh) is inaugurated. November 15, 1983: Atomic Energy Regulatory Board (AERB) in Mumbai is constituted. 1983: FBTR attains first criticality. November 19, 1982: BARC's Power Reactor Fuel Reprocessing Plant at Tarapur is commissioned. June 16, 1977: Variable Energy Cyclotron becomes operational at Kolkata. May 18, 1974: Peaceful underground Nuclear Experiment is conducted at Pokhran, Rajasthan. May 18, 1972: Research Reactor PURNIMA-I attains criticality. October 02, 1969: Tarapur Atomic Power Station starts commercial operation. May 01, 1969: Heavy Water Projects is constituted at Mumbai. This later becomes Heavy Water Board. December 31, 1968: Nuclear Fuel Complex is set up at Hyderabad, Andhra Pradesh. May 1968: Uranium Mill at Jaduguda with a capacity of 1,000 TPD commences commercial production of Magnesium diuranate (yellow cake). Jaduguda Mine Shaft is commissioned in November 1968. October 4, 1967: Uranium Corporation of India Limited (UCIL) is established with head quarters at Jaduguda Mines in Jharkhand (then Bihar). June 1, 1967: Power Projects Engineering Division (PPED), Mumbai is formed. The Division is subsequently converted to Nuclear Power Board on August 17, 1984. April 11, 1967: Electronics Corporation of India Limited (ECIL) is set up at Hyderabad for producing electronic systems, instruments and components. January 22, 1967: AEET is named as Bhabha Atomic Research Centre (BARC). January 14, 1961: Research Reactor ZERLINA attains criticality. (It is decommissioned in 1983). July 10, 1960: CIRUS – the 40 MWt research reactor attains criticality. After its successful refurbishment, the reactor was dedicated to the Nation on October 31, 2002. February 19, 1960: First lot of 10 Fuel Elements for CIRUS reactor is fabricated at Trombay. August 19, 1957: AEET Training School starts functioning at Trombay. January 20, 1957: Atomic Energy Establishment, Trombay (AEET) is inaugurated.

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August 04, 1956: APSARA - first research reactor in Asia, attains criticality at Trombay, Mumbai. August 03, 1954: Department of Atomic Energy is created. April 1951: Uranium Deposit at Jaduguda is discovered by AMD. Drilling operations commence in December 1951. August 18, 1950: I ndian Rare Earths Limited (IRE) owned by the Government of India and Government of Travancore, Cochine, is set up for recovering minerals, processing of rare earths compounds and Thorium - Uranium concentrates. In 1963, IRE becomes a full-fledged government undertaking under DAE August 10, 1948: Atomic Energy Commission is constituted. April 15, 1948: Atomic Energy Act is passed December 19, 1945: Tata Institute of Fundamental Research (TIFR) Mumbai is inaugurated. March 12, 1944: Dr. Homi Jehangir Bhab ha writes to Sir Dorabji Tata Trust for starting Nuclear Research in India Reference: http://www.dae.gov.in/milestone.htm 2.13.1.3 Current Organisational Charts The Indian Atomic Energy Organisational Structure is shown in Figure 2.6 Development of nuclear power and related nuclear fuel cycle and research and development activities are carried out in various units under the AEC/DAE. The organisation is broadly divided into research and development sector, industrial sector, public sector, services and support sector and provides for close interaction needed between the production and R&D units. • Atomic Energy Regulatory Board (AERB) comes directly under the Atomic Energy Commission as the independent Regulatory Authority. It is independent of DAE. • Research and development sector includes Bhabha Atomic Research Centre (BARC), Indira Gandhi Centre for Atomic Research (IGCAR), Atomic Minerals Directorate for Exploration and Research (AMD), Raja Ramanna Centre for Advanced Research (RRCAT), Variable Energy Cyclotron Centre (VECC), and fully aided research institutions like Tata Institute of Fundamental Research (TIFR), Institute for Plasma Research (IPR) and others. It also includes Board of Research for Nuclear Sciences (BRNS) and National Board for Higher Mathematics (NBHM) for providing extra-mural funding to universities and other national laboratories. • The HRD programmes of DAE have been recently augmented by the setting up of

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the Homi Bhabha National Institute (HBNI) as a "Deemed to be University". This will further strengthen the linkages between basic research and technology development in various constituent R&D centres and grant-in-aid institutes of the DAE. • Industrial sector includes Government owned units Heavy Water Board (HWB) for the production of heavy water, Nuclear Fuel Complex (NFC) for the manufacture of nuclear fuel, zircaloy components and stainless steel tubes, and Board of Radiation & Isotope Technology (BRIT) for processing and sale of radioisotopes. Public Sector Enterprises under the control of DAE and their activities are as follows: • Nuclear Power Corporation of India Limited (NPCIL) engaged in the design, construction, commissioning and operation of the nuclear power plants based on thermal reactors; • Uranium Corporation of India Limited (UCIL) engaged in mining, milling and processing of uranium ore; • Indian Rare Earths Limited (IRE) engaged in mining and processing mineral sands containing thorium and rare earth minerals and producing minerals such as ilmenite, rutile, monazite, zircon and garnet; • Electronics Corporation of India Limited (ECIL) engaged in design and manufacture of reactor control and instrumentation equipment related to atomic energy and also to other sectors; • Bhartiya Nabhikiya Vidyut Nigam Limited (BHAVINI) for setting up fast reactors. Directorate of Construction Services and Estate Management is responsible for construction and maintenance of residential housing/office buildings and other related facilities; Directorate of Purchase and Stores is responsible for centralised purchases and stores. Nuclear power projects have been set up and operated by a unit directly under the Government of India since the late 1960's, when the construction of the first nuclear power station was commenced. This unit was corporatised in September 1987, thereby forming Nuclear Power Corporation of India Limited

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(NPCIL), a wholly owned company of Government of India. Formation of NPCIL was a step to give the required degree of operational freedom and to mobilise funds from the Indian capital market to finance new nuclear power projects. NPCIL is responsible to design, construct, commission and operate the nuclear power plants of the first stage nuclear power programme. Construction of the first 500 MWe PFBR was started by the recently setup company, BHAVINI. Development of the 300 MWe AHWR design, for demonstration of technology towards large-scale utilisation of thorium for electricity generation, is being carried out at BARC.

Figure 2.6 Organisation of Atomic Energy Commission (AEC) Reference: www.dae.gov.in

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2.13.2 Nuclear Power Plants: Status and Operation The nuclear power generation comes under the AEC/DAE, GOI. NPCIL, a public sector enterprise of the DAE is responsible for design, construction, commissioning and operation of the nuclear power stations. It is supported by the different units of the Department for R&D, supply of fuel, heavy water, etc. Power generated from the nuclear power stations is sold to State Electricity Boards as per the power purchase agreements. The power supplied is shared by the States in the respective Electricity Region in which the nuclear power plant is located. The laying of transmission lines for evacuation of power from the nuclear power plants is carried out by the Power Grid Corporation of India Limited (PGCIL), a public sector enterprise of Ministry of Power, GOI. The tariffs for generation of electricity generated by the nuclear power stations are fixed based on the applicable norms and notified by the DAE in consultation with the CEA. AERB is the Competent Authority for the regulation on the safety aspects of nuclear power. Environmental clearances for the nuclear power plant sites are obtained from the Ministry of Environment and Forests, GOI apart from the clearance of AERB. 2.13.3 Status of Nuclear Power Plants The construction of India's first nuclear power station at Tarapur consisting of two boiling water reactors (BWRs) commenced in 1964. This was essentially to establish the technical and economic viability of nuclear power in India and to gain valuable experience. In parallel, the work on construction of PHWRs was also commenced. First two BWRs at Tarapur are in operation since 1969. Total of twenty power reactors are in operation (As on February 2012). two reactors at each of the four locations Kalpakkam (MAPS), Narora (NAPS), Kakrapar (KAPS), four each at Tarapur (TAPS) and Kaiga (KGS) and six reactors at Rawatbhata (RAPS) are now in operation. Of these, TAPS- 3&4 of 540 MWe unit size while the others are in the unit size range of about 200-220 MWe (gross). The total net nuclear power capacity in operation is now 4385 MWe. Construction work for setting up of 2 × 1000 MWe VVERs at Kundankulam is now complete in co-operation with Russian Federation. Several advanced safety

58 Chapter 2 Indian Perspective: Energy, Economics and Electricity features have been provided in these reactors. Construction work for setting up of two 700 MWe reactors at Kakrapar (KAPS 3&4) and one 700 MWe reactor at Rawatbhata (RAPP-7) are also in progress. The work on the second stage of the nuclear power programme is in progress at the Indira Gandhi Centre for Atomic Research (IGCAR). The Fast Breeder Test Reactor (FBTR) 40 MWth at Kalpakkam is in operation. Its unique carbide fuel has achieved a burn-up of 155,000 MWD/Tonne. Construction of the first 500 MWe Prototype Fast Breeder Reactor (PFBR) is in progress and the unit is scheduled to start commercial operation in the year 2013. Land acquisition and fencing work is complete at Jaitapur for construction of six 1650 MWe EPR (European Power Reactors) in cooperation with AREVA France. Towards building up thorium-based reactors, the strides taken by DAE include setting up of 30 kWth neutron source research reactor KAMINI at Kalpakkam. The reactor has been in operation since 1997. Kamini uses uranium233-based fuel derived from irradiated thorium. Three more research reactors DHRUVA, CIRUS and APSARA are also operational at BARC, Mumbai. A Compact High-Temperature Reactor (CHTR) is being designed to have long (15 year) core life and employ liquid metal (Pb-Bi) coolant. There are also designs for HTRs up to 600 MWt for hydrogen production and a 5 MWt multi-purpose nuclear power pack. A detailed design report for setting up the Advanced Heavy Water Reactor (AHWR) of 300 MWe capacity has already been prepared by BARC. This is a vertical pressure tube reactor design utilising heavy water moderator, boiling light water coolant, thorium-plutonium based fuel and incorporating passive safety systems. It derives about two-third of its power from thorium and DAE/BARC expects to launch its construction in 2009 essentially as a technology demonstration project for utilising thorium for electricity generation. The details along with the status of NPPs of India are given in Table 2.12. Table 2.13 lists details of nuclear power plants in India under construction and Table 2.14 gives details of planned / firmly Proposed nuclear power plants in India.

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Table 2.12 Nuclear power plants in India: operations State Type MWe Commercial Safeguards status net, operation each Tarapur 1 & 2 Maharashtra BWR 150 1969 item-specific Kaiga 1 & 2 Karnataka PHWR 202 1999 -2000 Kaiga 3 & 4 Karnataka PHWR 202 2011 Kakrapar1& 2 Gujarat PHWR 202 1993 -95 2010 -new agreement Madras 1 & 2 Tamil Nadu PHWR 202 1984-86 Narora 1 & 2 UP PHWR 202 1991-92 2014-new agreement Rajasthan 1 Rajasthan PHWR 90 1973 item-specific Rajasthan 2 Rajasthan PHWR 187 1981 item-specific Rajasthan3& 4 Rajasthan PHWR 202 1999 -2000 2010 -new agreement Rajasthan5& 6 Rajasthan PHWR 202 Feb -April 2009 -new agreement 2010 Tarapur 3 & 4 Maharashtra PHWR 490 2006, 05 Total (20) 4385 Reference: http://www.world-nuclear.org/info/inf53.html Table 2.13 Nuclear power plants in India: under construction Reactor Type MWe Project Construction Commercial Safeguards gross, control start operation status net, due each Kudankulam 1 PWR 1000, NPCIL March 2002 3/2012 but item- (VVER) 950 delayed specific

Kudankulam 2 PWR 1000, NPCIL July 2002 6/2012 but item- (VVER) 950 delayed specific Kalpakkam FBR 500, Bhavini Oct 2004 2013 - PFBR 470 Kakrapar 3 PHWR 700, NPCIL Nov 2010 June 2015 630 Kakrapar 4 PHWR 700, NPCIL March 2011 Dec 2015 630 Rajasthan 7 PHWR 700, NPCIL July 2011 Dec 2016 630 Total (6) 4260 net, 4600 gross Reference: http://www.world-nuclear.org/info/inf53.html

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Table 2.14 Nuclear power plants in India: planned / firmly Proposed Reactor State Type MWe Project Start Start gross, control construction operation each Reactors Planned (17 Reactors, Total of 15000-16600 MWe) Rajasthan 7 Rajasthan PHWR 700 NPCIL Dec 2010 June 2016 Rajasthan 8 Rajasthan PHWR 700 NPCIL 2011 Dec 2016 Kundankula Tamil PWR - 1050- NPCIL 6/2011 2016 m 3 Nadu AES 92 1200 or AES- 2006 Kundankula Tamil PWR - 1050- NPCIL 2012? 2017 m 4 Nadu AES 92 1200 or AES- 2006 Jaitapur 1& 2 Maharasht PWR - 1700 NPCIL 2013 2018 -19 ra EPR Kaiga 5 & 6 Karnataka PWR 1000/150 NPCIL by 2012 0 Kudankulam Tamil PWR - 1050- NPCIL 2014 2019-21 5 & 6 Nadu AES 92 1200 or AES- 2006 Kumharia 1- Haryana PHWR x 700 NPCIL by 2012? 4, 4 (or x2) or Fatehabad NPCIL -NTPC Bargi 1 & 2 Madhya PHWR x 700 NPCIL 2012? Pradesh 2 or NPCIL -NTPC Kalpakkam Tamil FBR x 2 50 0 Bhavin 2014 2019 -20 2 & 3 Nadu i Kudankulam Tamil PWR - 1050- NPCIL 2012? 2017 7 & 8 Nadu AES 92 1200 or AES- 2006 Reactors Proposed (39 Reactors, Total of 45000 MWe) Rajauli Bihar PHWR x 700 NPCIL 2 Mahi- Rajasthan PHWR x 700 NPCIL Banswara 2 ? PWR x 2 1000 NPCIL by 2012? 2014 /NTP C Jaitapur 3 & Maharasht PWR - 1700 NPCIL 2016 2021 -22 4 ra EPR

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Reactor State Type MWe Project Start Start gross, control construction operation each ? ? FBR x 2 500 Bhavin 2017 i ? AHWR 300 NPCIL 2014 2019 Jaitapur 5 & Maharasht PWR - 1600 NPCIL 6 ra EPR Markandi Orissa PWR (Pati 6000 Sonapur) MWe Mithi Virdi Gujarat 2 x 1250 2013 2019-20 1-2, AP1000? Saurashtra region Mithi Virdi Gujarat 2 x 1250 2015 2020-21 3-4 AP100? Pulivendula Kadapa, PWR? 2x1000? NPCIL Andhra PHWR? 2x700? 51%, Pradesh AP Genco 49% Kovvada 1-2 Srikakula 2 x 1350 - NPCIL site works, 2019 -20 m, Andhra ESBWR? 1550 2014 Pradesh (1400?)

Kovvada 3-4 Andhra 2 x 1350- NPCIL Pradesh ESBWR? 1550 Nizampatna Guntur, 6x? 1400 NPCIL m 1-6 Andhra Pradesh Haripur 1-2 West PWR x 4 1200 2014? 2019-21 Bengal VVER- (but likely 1200 relocated, maybe to Orissa) Haripur 3-4 West PWR x 4 1200 2017 2022 -23 Bengal VVER12 00 Chutka Madhya ? 1400 BHEL- Pradesh NPCIL -GE? Mithi Virdi Gujarat 5-6 Kovvada 5-6 Andhra Pradesh Reference: http://www.world-nuclear.org/info/inf53.html

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2.13.4 Proposed Nuclear Energy Parks The details of Nuclear Energy Parks[7] proposed In India are given below. Kudankulam in Tamil Nadu: three more pairs of Russian VVER units, making 9200 MWe. Environmental approval has been given for the first four. A general framework agreement for construction of units 3 & 4 was planned to be signed by the end of June 2010, but has apparently been delayed on account of supplier liability questions. Equipment supply and service contracts for units 3 &4 were to be signed by the end of December 2010 and the first concreting was expected by the end of June 2011. Jaitapur in Maharashtra: An EUR 7 billion framework agreement with Areva was signed in December 2010 for the first two EPR reactors, to be commissioned in 2017-18, along with 25 years supply of fuel. Environmental approval has been given for these, and site work will start in 2011 with a view to 2013 construction start. In July 2009 Areva submitted a bid to NPCIL to build the first two EPR units, which will have Alstom turbine-generators, accounting for about 30% of the total EUR 7 billion plant cost. The site will host six units, providing 9600 MWe. Mithi Virdi (or Chayamithi Virdi) in Gujarat: to host US technology (possibly Westinghouse AP1000, maybe GE Hitachi ESBWR), six units. NPCIL says it has initiated pre-project activities here, with groundbreaking planned for 2012. Kovvada in Andhra Pradesh: to host US technology (possibly GE Hitachi ESBWR), six units. NPCIL says it has initiated pre-project activities here, with groundbreaking planned for 2012. GE Hitachi said it expected to sign a contract in 2010 to supply six ESBWRs to NPCIL. Haripur in West Bengal: to host four or six further Russian VVER-1200 units, making 4800 MWe. NPCIL says it has initiated pre-project activities here, with groundbreaking planned for 2012. However, strong local opposition led the West Bengal government to reject the proposal in August 2011, and change of site to Orissa state has been suggested. Kumharia or Gorakhpur in Haryana is earmarked for four indigenous 700 MWe PHWR units and the AEC had approved the state's proposal for a 2800 MWe nuclear power plant. The inland northern state of Haryana is one of the country's most industrialized and has a demand of 8900 MWe, but currently generates less than 2000 MWe and imports 4000 MWe. The village of Kumharia is in Fatehabad district and the plant may be paid for by the state government or the Haryana Power Generation Corp. As per NPCIL pre-

63 Chapter 2 Indian Perspective: Energy, Economics and Electricity project activities have been initiated, with groundbreaking planned for 2012. Bargi or Chuttka in inland Madhya Pradesh is also designated for two indigenous 700 MWe PHWR units. As per NPCIL pre-project activities have been initiated here, with groundbreaking planned for 2012. At Markandi (Pati Sonapur) in Orissa there are plans for up to 6000 MWe of PWR capacity. Major industrial developments are planned in that area and Orissa was the first Indian state to privatise electricity generation and transmission. State demand is expected to reach 20 billion kWh/yr by 2010. Rosatom expects to build six further Russian VVER reactors at a further site, not yet identified. The AEC has also mentioned possible new nuclear power plants in Bihar and Jharkhand. 2.13.5. Supply of NPPs [8] India's first nuclear power station, Tarapur, was constructed by the International General Electric Co., USA based on a turnkey contract. The second nuclear power station at Rajasthan was built as a collaborative venture with Atomic Energy of Canada Limited (AECL), Canada. For all subsequent nuclear power stations, DAE/NPCIL assumed total responsibility for design, manufacture, construction, commissioning and operation. NPCIL carries out the nuclear design. Balance of plant engineering is done by Indian Consulting Engineering firms (employed by NPCIL) who have expertise in the fossil thermal power plant engineering. Manufacturing of most of the materials, components and equipment required for nuclear power plants is done indigenously. India has heavy engineering plants in both public and private sectors, manufacturing large steam generators, turbines, electrical equipment, heat exchangers, pumps, pressure vessels and other industrial equipment. The Indian Nuclear Power Programme utilizes these facilities for manufacture of nuclear and conventional equipment. In the early stage of the programme these facilities were augmented, whenever necessary, with balancing machinery and technical inputs to meet nuclear quality assurance requirements. NPCIL integrates all the activities relating to setting up the nuclear power

64 Chapter 2 Indian Perspective: Energy, Economics and Electricity plant. It plays the role similar to that of a turnkey supplier. The strategy of adopting large supply-cum-erection packages has been adopted in the projects under construction with the growth of domestic industry. Fuels, heavy water, zircaloy components, reactor control equipment, are supplied by the various units of DAE from the facilities set up for this purpose. Foreign suppliers of NPPs are involved in supplies of a major component of systems and equipment in respect of units set up in technical cooperation with foreign countries. In case of Kudankulam project, industries in Russia and other CIS are the major suppliers. 2.13.6 Operation of NPPs NPCIL operates and maintains the NPPs in operation. Each station has Operation, Maintenance, Technical and Training Groups. These functions are carried out by specially trained and qualified operating and maintenance personnel at each nuclear power station. The NPPs include reactor components and process systems, turbine generators, electrical system equipment, instrumentation and control systems (I&C), cooling water intake and out fall structures, heavy water upgrading plant (at PHWR stations), waste management facilities and the like, to be operated and maintained. Whenever required, the services of equipment suppliers are availed through contracts for major maintenance and overhaul. Three groups of technical and scientific personnel are required for the nuclear power programme: qualified professionals, i.e., engineers and scientists who later become senior engineers and managers; semi- professionals having engineering diplomas or advanced trade certificates who constitute the supervisory personnel; and, technicians like operators and maintainers with high school education and trade certificates. Professionals get inducted into the Atomic Energy Organisation by completing one-year training course at the BARC training school in Trombay or its affiliates at Indore, Hyderabad and NTCs of NPCIL. Separate training programmes at different levels are conducted at the NPCIL's Nuclear Training Centres of operating stations for qualifying and licensing of operating personnel, as per the regulatory

65 Chapter 2 Indian Perspective: Energy, Economics and Electricity requirements. Training simulators are used to provide training in all aspects of operation, including handling of unusual incidents. Key operations personnel are also imparted rigorous training in various systems of the plant on training simulators. NPCIL is a member of World Association of Nuclear Operators (WANO). WANO Peer Review of the nuclear power plants have being undertaken progressively by NPCIL. NPCIL is also a member of CANDU Owners Group (COG). All the nuclear power stations except the recently commissioned TAPS 3&4 have been certified for ISO-14001 - Environmental Management System, and all stations except TAPS & KGS certified for OHSAS - ISO 18001. 2.13.7 Fuel Cycle, Spent Fuel and Waste Management Fuel cycle and waste management services are provided by various units of the Department of Atomic Energy (DAE). Uranium Corporation of India Ltd., (UCIL), a public sector company of DAE, carries out mining and processing of uranium deposits surveyed by the Atomic Minerals Directorate of Exploration & Research (AMD) of DAE. New and innovative techniques like electromagnetic aerial survey capability to explore deep seated uranium deposits are being employed to enhance the uranium capacity. In addition, new mines are also being commissioned. Nuclear Fuel Complex (NFC), an industrial unit of DAE, utilizes the uranium concentrates supplied by UCIL to fabricate PHWR's nuclear fuel assemblies. For the BWR's in Tarapur, NFC manufactures the fuel assemblies from imported uranium. NFC also supplies the required zircaloy components. Heavy water required for the initial charge and subsequent make-up requirements of the nuclear power plants are supplied by the Heavy Water Board of DAE. Spent fuel from the PHWRs is reprocessed to extract the plutonium contained in it. Build up of plutonium inventory is vital for development of the second stage of the Indian nuclear power programme consisting of FBRs. The fuel reprocessing plants are set up by the BARC based on the technology developed by it. Power Reactor Fuel Reprocessing Plants at Tarapur and Kalpakkam are

66 Chapter 2 Indian Perspective: Energy, Economics and Electricity operational. Processes for treating reactor-produced wastes have been established and plants meeting regulatory requirements have been in operation during the past several decades. This is also the case with waste generated from fuel reprocessing plants. The first waste immobilization plant at Tarapur is in service and a Solid Storage Surveillance Facility (S3F) has also been set up for interim storage of waste. A Waste Immobilisation Plant (WIP) has been installed at Trombay and another WIP is under construction at Kalpakkam. R'D work for ultimate disposal of high level and alpha bearing wastes in a repository is in progress. 2.13.8 Research and Development 2.13.8.1 R&D Organizations and Institutes • BARC, is the national research centre for multidisciplinary R'D work in nuclear sciences, reactor engineering, reactor safety, nuclear fuel, control and instrumentation, material science, spent fuel reprocessing and radioactive waste management, development of radiation technology applications etc. R'D work on development of the AHWR is in progress at this Centre and the prototype unit is expected to be launched in a few years. Development works on plant life extension, ageing and in-service inspection are given due importance. • IGCAR is responsible for R'D related to development of FBR technology. Technology development for the first 500 MW (e) PFBR has been completed and excavation for construction of the reactor at Kalpakkam has been started by a corporation BHAVINI set up especially for this purpose. BHAVINI draws technical expertise from IGCAR and project management expertise from NPCIL. • Atomic Mineral Directorate for Exploration and Research (AMD) at Hyderabad, is responsible for survey, exploration and prospecting of atomic minerals, etc. • Raja Ramanna Centre for Advanced Technology (RRCAT) and Variable Energy Cyclotron Centre (VECC) carry out advanced research in Lasers, Accelerators and their applications. • Institute of Plasma Research (IPR) undertakes research in Plasma Physics and associated technologies. • The other R&D institutions of the DAE are carrying out advanced research work

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in hi-tech areas such as biosciences etc. and also in basic sciences such as physics, chemistry, biology and mathematics. • Academic Institutions and Universities also extend R&D support in specific areas as per needs. • The Board of Research in Nuclear Sciences (BRNS) and the National Board of Higher Mathematics (NBHM) support research activities in national institutes and universities in the fields of nuclear science & technology and mathematics. • Homi Bhabha National Institute (HBNI) is a "Deemed to be University" which provides the linkage between basic research and technology development in DAE. 2.13.9 Development of Advanced and New Generation Nuclear Reactor Systems A number of initiatives have been taken on the development of new reactor systems. The details are as follows: • All PHWRs beyond those presently under construction are proposed to be of 700 MWe unit size. Design work on scaling up the 540 MWe unit PHWR to 700 MWe by permitting partial boiling in the channels, has been completed. These units are proposed to be launched in the next 2-3 years. • The construction of the first 500 MWe PFBR is proceeding according to schedule. This will signify the launch of the second stage FBR programme in the country. • The 300 MWe AHWR design has been completed. This is a technology demonstration project for large-scale utilisation thorium for electricity generation. 2.14 International Co-operation and Initiatives International co-operation is through multilateral mechanism with IAEA as well as through bilateral mechanisms. Under the aegis of the IAEA, India has trained a number of personnel, particularly from the developing countries. India has also hosted a number of workshops, seminars and training courses. The expertise of Indian scientists and engineers is made available to other countries through IAEA. NPCIL is a member of WANO Tokyo Centre, WANO Atlanta Centre and Candu Owners Group (COG). Many Indian professional have participated in the workshops/seminars/training courses, conducted by these organisations. Also, many Indian professional have participated as Reviewer / Lead Reviewer in the

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WANO Peer Review of Plants abroad. NPCIL teams have also visited other NPPs outside India under the Technical Exchange Visit (TEV) programme of WANO. Similarly NPCIL plants have also received TEV team from other NPPs worldwide. The details on various greements are given in Table 2.15, 2.16, 2.17 and 2.18. Table 2.15The details on international, multilateral and bilateral agreements AGREEMENTS WITH THE IAEA • Amendment to the Article VI of the IAEA Entry into force: 28 December 1989 Statue • Amendment to the Arti cle XIV of the IAEA Not ratified • Agreement on privileges and immunities Entry into force: 10 March 1961 • Additional protocol Not signed • Supplementary agreement on provision of Non-Party; 6 Oct. 1993 (Text technical assistance by the IAEA Handed Over) • RCA Entry into force: 6 July 1987 • The Agency's assistance in furthering projects Entry into force: 9 December 1966 by the supply of materials MULTILATERAL SAFEGUARDS AGREEMENTS • Safeguards transfer relating to the bilateral Entry into force: 27 January 1971 agreement with the United States of America • Safeguards transfer relating to the bilateral Entry into force: 30 September 1971 agreement with Canada; INFCIRC/211 • Application of safeguards in connection with Entry into force: 17 November 1977 the supply of heavy water from USSR; INFCIRC/260 • Application of safeguards in connection with Entry into force: 27 September 1988 the supply of a nuclear power station from the USSR; INFCIRC/360 • Application of safeguards in connection with Entry into force: 11 October 1989 the supply of nuclear material from France INFCIRC/374 • Agreement for the application of safeguards to Entry into force: 1 March 1994 all nuclear material subject to Agency Safeguards 12 September 1994 under INFCIRC/154, • Improved procedures for designation of Accepted : 9 January 1989 safeguards

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Table 2.16 Main treaties Main Treaties or Agreements • NPT Non Party • Convention on physical protection of nuclear Entry into 11 April material force 2002 • Convention on early notification of a nuclear Entry into 28 Feb accident force: 1988 • Convention on assistance in the case of a nuclear Entry into 28 accident or radiological emergency force: Feb1988 • Vienna convention on civil liability for nuclear Non Party damage • Paris convention on civil liability for nuclear N.A. damage • Joint protocol Non Party • Protocol to amend the Vienna convention on civil Not signed liability • Convention on Supplementary compensation for Not signed nuclear damage • Convention on nuclear safety Signature: 20 Sept1994 • Joint convention on the safety of spent fuel Not signed management and the safety of radioactive waste management • Agreement establishing the Asian Regional Co- Entry into 23 May operati ve Project on Food Irradiation force: 1980 • Memorandum of Understanding between the IAEA and the May Department of Atomic Energy, Government of India, concerning 2000 strengthening of Co-operation in connection with the Agency's regional and inter-regional training events, individual and group fellowship programmes carried out as part of the Technical Co- operation Activities of the IAEA

Table 2.17 Relevant international treaties Other Relevant International Treaties, etc • Zangger N.A. Committee • Nuclear Export Export control system in place since 1948 when the Atomic Guidelines Energy Act was passed by the Constituent Assembly • Acceptance of Summary: Valuable guidance for national requirements. NUSS Codes Useful reference in safety assessments. India's regulatory regulatory requirements are generally consistent with codes. Aims to meet requirements although they are not binding.

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Table 2.18 Bilateral agreements Bilateral Agreements (Co-operation agreement concerning peaceful uses of nuclear energy) Egypt 10 July 1962 Belgium 30 Jan 1965 Czech Republic 9 Nov 1966 Germany 5 Oct 1971 Iraq 28 Mar 1974 Poland 9 Sept 1977 Russi an Federation 22 Jan1979 Syria 1 May 1980 Indonesia 9 Jan 1981 Cuba 18 May 1985 Vietnam 25 May 1986 Algeria 25 September 1990 Philippines 29 April 1991 Peru 12 February 1992 2.15 Human Resource Development Realising the importance of having well trained scientists and engineers in achieving success in the programme, a training school at BARC was established in August 1957. Subsequently, for the training needs of the operating nuclear power stations, the Nuclear Training Centres (NTC) were set up by Nuclear Power Corporation of India Limited (NPCIL). To meet the expanding needs of Human Resources, Training Schools have also been set up at the Raja Ramanna Centre for Advanced Technology, Indore (2000) and Nuclear Fuel Complex, Hyderabad (2001). NTCs and training schools at Hyderabad and Indore are affiliated to the BARC Training School with respect to training of engineers and scientists. Thus, human resource development has been given high importance from the early stages by the DAE. It has been further strengthened by setting up the Homi Bhabha National Institute (HBNI), a "Deemed to be University'. 2.16 National Laws and Regulations 2.16.1. Safety Authority and the Licensing Process The Atomic Energy Regulatory Board (AERB) was formed in November 1983 by the Government of India in exercise of the powers conferred by the Atomic Energy Act of 1962, to carry out regulatory and safety functions as

71 Chapter 2 Indian Perspective: Energy, Economics and Electricity envisaged in the Act. As per its constitution, AERB has the power of the Competent Authority to enforce rules and regulations framed under the Atomic Energy Act for radiation safety in the country. AERB also has the authority to administer the provisions of the Factories Act, for industrial safety of the units of DAE. AERB has been delegated with powers to enforce some of the provisions of the Environmental Protection Act, at DAE installations. Prior to setting up of AERB, the DAE - Safety Review Committee (DAE-SRC) was carrying out these functions. DAE-SRC was supported by the Unit level Safety Committees. Enforcement of safety related regulation at all nuclear facilities lies with the Atomic Energy Regulatory Board (AERB), empowered by the Government of India. The structure of the regulatory organisation is shown in Fig. 2.7. The AERB conducts in-depth reviews so that nuclear facilities do not pose any radiological risk to the public and plant personnel. The authorisation process involves various major activities like site approval, construction, commissioning, operation and decommissioning. This process is an ongoing one starting with site selection and feasibility study, continuing through the construction and operation of the facility until the decommissioning of the plant. The applicant is required to provide all relevant information, such as safety principles, analysis, criteria and standards proposed for each major stages, and quality assurance demonstrating that the plant will not pose any undue radiological risks to site personnel and the public. AERB has advisory committees for site selection, design review and authorisation, and licenses for commissioning. The advisory committees are assisted by unit level safety committees, which undertake detailed safety assessments at the design and commissioning stages of nuclear facilities. AERB then issues its authorisation based on the recommendations of the advisory committee. Safety assessments during plant operation are done by the Safety Committee for Operating Plants (SARCOP). Authorisation is granted only for a limited period and further authorisation is required beyond that period. Authorisation also includes explicit conditions that the applicant must adhere to.

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Figure. 2.7 Organisational chart of Atomic Energy Regulatory Board Source: http://www.aerb.gov.in/T/public/ria/orgstructure.pdf

AERB also ensures that all the nuclear facilities have put in place an emergency preparedness procedure and organisation. 2.16.2. Main National Laws and Regulations The Atomic Energy Act 1962 is the main law. The various activities relating to the Indian atomic energy programme are governed by this Act. A number of rules, codes, and regulations covering the entire nuclear fuel cycle have been defined by AERB as well as DAE under the Atomic Energy Act of 1962, for instance: Rules: • Atomic Energy (Arbitration procedure) Rules, 1983 • Atomic Energy (Working of mines, minerals and handling of prescribed substances) Rules, 1984 • Atomic Energy (Safe disposal of radioactive waste) Rules, 1987

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• Atomic Energy (Factories) Rules, 1996 • Atomic Energy (Control of irradiation of foods) Rules, 1996 • Atomic Energy (Radiation Protection) Rules, 2004 Notifications • Prescribed substances, prescribed equipment and Technology, 2006. • Guidelines for Nuclear Transfers (Exports), 2006. Exports of Nuclear and nuclear related items are regulated under the following legislations: • Atomic Energy Act 1962. • Foreign Trade (Development and Regulations) Act 1992. • The weapons of Mass Destruction and their delivery systems (Prohibition of Unlawful Activities) Act 2005. 2.17 Current Issues and Developments on Nuclear Power 2.17.1 Energy Policy The Integrated Energy Policy of the country recognizes that nuclear power based on indigenous resources can provide long term energy security for the country and recommends continued support for the three-stage program and development of the thorium fuel cycle. It also recommends exploring the possibility of setting up large nuclear capacities based on imports once the necessary agreements for international cooperation are in place. 2.17.2 Privatisation and Deregulation The nuclear power generation and related fuel cycle activities are under the Central Government. NPCIL, a wholly owned company of GOI. The 500 MWe PFBR is being set up by BHAVINI which is another PSU under DAE registered on 22 nd October 2003 for this purpose. DAE, is responsible for setting up and operating the nuclear power plants. The other related fuel cycle (both front-end and back end) activities are carried out by the different units of DAE, GOI. As of now, there is no equity participation by the private sector in the area of nuclear power generation. Possibility of joint ventures with public/private sector is being explored. This is essentially with a view to attracting investment in the nuclear power sector for capacity addition. This, however, will require

74 Chapter 2 Indian Perspective: Energy, Economics and Electricity amendments to the Atomic Energy Act, 1962. 2.17.3 Safety and Waste Management Issues Utmost attention is given to safety in nuclear power plants. The overriding attention to safety encompasses the entire gamut of activities associated with nuclear power plants (NPPs), that is, siting, design, construction, commissioning, and operation. In all these activities, a major effort is devoted to ensuring safety of operating personnel, public as well as the environment. A systematic approach using well-defined principles is followed in the design of the nuclear power plants to provide the required safety features adopting principles of defence-in-depth, diversity and redundancy. Nuclear Power Plants are constructed in accordance with the design intent, and with required quality of workmanship to very strict quality standards. Commissioning of the systems to test and demonstrate adequacy of each system and the plant as a whole by actual performance tests to meet the design intent is carried out before commencing the operation of the plant. Operation of the plant is carried out as per defined and approved procedures defining the safety limits for various system parameters, in technical specifications that are thoroughly reviewed by the internal safety committees and approved by AERB. Further AERB, through formal clearances that authorise actions and stipulate specific conditions, enforces safety at various stages of the plant. These include site approval, review and approval of design of systems important to safety and authorisations for construction, commissioning and operation and safety review during operational phase. The regulatory framework in India is indeed robust. All these measures are for ensuring safe operation of the plants, safety of occupational workers and members of public. All nuclear power plant sites in India are self sufficient in the management of radioactive waste generated there. Adequate facilities have been provided for handling, treatment and disposal of relevant wastes at these sites. Management of radioactive wastes is carried out in conformity with the guidelines specified by the Regulatory Authorities based on internationally accepted principles in line with

75 Chapter 2 Indian Perspective: Energy, Economics and Electricity the guidelines laid down by the international agencies. 2.17.4 Other Issues and Developments The NPPs presently in operation are generating electricity at competitive tariffs. Measures to reduce construction period of NPPs, standardisation and scaling up unit sizes have been taken to further improve the economic competitiveness of nuclear power. The nuclear power technology, as is evident from the excellent performance of the indigenously constructed plants of the first stage nuclear power programme, in India has matured. The current emphasis is on accelerating the growth of nuclear capacity addition. The factors receiving attention are: • Launching indigenously designed 700 MWe. PHWRs • Launching of AHWR 300 MWe- a technology demonstration project for utilisation of thorium for electricity generation. • Setting up large capacity LWRs based on imports • Focus on further enhancement of performance and safety of NPPs in operation 2.18 Environmental Aspects 2.18.1 Nuclear Power – Decarburizing the environment Climate change arising out of Green House Gas Emissions is among the most important challenges facing the world today. The effects of climate changes are expected to be catastrophic, with crop losses, sea-level rise, extreme weather events and other losses predicted by various models. Nuclear power is environmentally benign and the life cycle Greenhouse Gas emissions of nuclear power are comparable to that of wind and solar photo-voltaic power. This power thus contributes significantly in decarburizing the power sector and arresting climatic changes. Nuclear power, being a compact source of energy requiring lower quantities of fuel in comparison to coal based thermal power station. Therefore, the transport infrastructure needed for nuclear fuel is very small. 10,000 MWe nuclear power capacity needs only about 300-350 tons of fuel per annum, as

76 Chapter 2 Indian Perspective: Energy, Economics and Electricity against 35-50 million tons of coal needed for a coal fired thermal power station of the same capacity. It works to about a shipload or 20 trainloads per day. The pressure on rail, port and other infrastructure will be immense when large thermal capacity is added, apart from emissions arising out of transporting such large quantities of coal. Figure 2.8 gives details of greenhouse gases from electricity production

Source: www.iaea.in Figure 2.8 Greenhouse gases from electricity production

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Conclusion Annual electricity consumption of 750 kWh (including captive power generation) per capita in India is one of the lowest in the world. Based on the projected growth rates, per capita electricity needs would reach 5300 kWh per year by the year 2052. This corresponds to an installed capacity of around 1300 GWe. The domestic mineable coal (about 38 Billion Tonnes) and the estimated hydrocarbon reserves (about 12 Billion Tonnes) together may provide about 1200 EJ of energy. To meet the projected demand of about 2400 EJ, all options including using the known fossil reserves will require to exploit efficiently, looking for increasing fossil resource base, competitive import of energy (including building gas pipe lines whenever and wherever permitted based on geo-political considerations and found feasible from techno-commercial considerations), harnessing full hydro potential for generation of electricity and increasing use of non-fossil resources including nuclear and non-conventional. Installed capacities and power generation status analysed over fifteen years explicitly brings out the immediate requirement of filling the deficiency gap of power to achieve desired goals set for the future.

It is deduced that, the potential of hydel and nuclear energy should be exploited optimally. Nuclear energy has the potential of approximately 17000EJ (including Pressurised Heavy Water Reactors, Fast Breeders, and Thorium thermal breeder).

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References [1] Dani Rodrik and Arvind Subramanian of the International Monetary Fund [2] Dani Rodrik and Arvind Subranium, “Why India can grow at 7 percent or more: projections and reflections”, IMF Working Paper, WP/04/118, July 2004. [3] R. B. Grover and Subash Chandra, “A strategy for growth of electrical energy in India”, Document No 10, Department of Atomic Energy, Mumbai, India, August 2004. [4] International Energy Agency (IEA), Key World Energy Statistics, 2003. [5] Centre for Monitoring Indian Economy (CMIE) 2002, “Energy”, April 2002 [6]International Energy Agency(IEA),World Energy Outlook 2002 Highlights p- 32 [7] http://www.world-nuclear.org/info/inf53.html [8]http://www-pub.iaea.org/mtcd/publications/pdf/cnpp2011/countryprofiles [9] Integrated Energy Policy, Government of India, Planning Commission, August 2006 [10] The Electricity Act, 2003 [no. 36 of 2003], The Gazette of India Also Country Profile of India 1995 - 96, Economist Intelligence Unit Annual Report 2004-05, 2005-06, Ministry of Power, Government of India Annual Report 2004-05, 2005-06, Ministry of New and -Renewable Energy India 2002, A Reference Manual, Compiled and Edited by Research, Reference and Training Division, Publication Division, Ministry of Information and Broadcasting, Government of India Division. Annual Report 2004-05, 2005-06, Ministry of Coal Annual Report 2004-05, Government of India, Department of Atomic Energy. Data & Statistics, The World Bank, www.worldbank.org/data IAEA Energy and Economic Data Base (EEDB). IAEA Power Reactor Information System (PRIS).

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