Local intellectual property ownership key for private nuclear power plants

New Delhi: India may insist on local ownership of certain intellectual property (IP) rights as a precondition for private investors looking to set up nuclear power plants as the government seeks to increase the country’s atomic energy capacity, officials working on the policy told ET.This is among the proposals that the government is considering as it works on the public-private partnership framework and joint venture rules, including those that will govern overseas companies, for private investment in nuclear power, they said. Another person familiar with the matter said that the proposed framework may skip certain components in core tech from the provision.

To be sure, the rights referred to are for reactor design and not those that apply to the core reactor, said the people cited.

Atomic Ambitions
India plans to expand nuclear energy capacity to 35-40 GW by 2035 and 100 GW by 2047 from 8 GW now to meet demand in the fastest-growing major economy and that will require private sector participation. The country currently has 22 operating reactors, all state-run, with an installed capacity of 6,780 MW.

Finance minister Nirmala Sitharaman had proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act in the February 1 budget in order to facilitate private investment and boost atomic energy capacity.Local joint venture companies will need to have control and ownership of the IP rights of the design of the reactors, said an official. The policy is also likely to stipulate majority ownership by the Indian partner in the venture. Besides, the government also plans to keep control of fuel management for security reasons and to prevent misuse.These measures-IP rights for reactor design, majority Indian stake, and government oversight over fuel-are designed to ensure full domestic control over nuclear power plants.

The government has reached out to the private sector on the proposed framework. It has set up committees with senior officials to finalise the changes required in the Atomic Energy Act.

According to the official cited above, top Indian companies have shown interest in setting up these reactors and a handful of consulting firms have already started work on designs.