At the crux of this entire political conundrum, the core issue, which lays quite forlorn and forgotten is the nuclear issue. Today the politicians might have turned it into an opportunity to topple the UPA Govt but few remember that it all started with the nuclear deal.
Surely few of these politicians would have actually taken the effort to read the 82-page nuclear deal and tried to understand what it is all about. Somehow that does not come as a surprise at all! So without getting into the "political" angle of it, let us take a look at what exactly is this nuclear issue. What would India gain if UPA wins the vote and what we stand to lose if the deal gets cancelled?
*What exactly is nuclear power? *
Nuclear power is generated using Uranium, which is a metal mined in various parts of the world. It produces around 11% of the world's energy needs, and produces huge amounts of energy from small amounts of fuel, without the pollution that you'd get from burning fossil fuels.
* *
*Where does India currently stand on nuclear power? *
In India, nuclear power is being produced under the Nuclear Power Corporation of India. Seventeen reactors are under operation and five reactors are under construction. These power projects are highly capital intensive and currently, takes care of 2.8% of the power needs of the country. Amongst the 30 countries in the world that use nuclear power, India's rank at 27 is one of the lowest.
* *
*Why nuclear power? *
To take India's economic growth rate to greater heights, there is no doubt that power would be required as the main fuel for this growth. Though coal, thermal and hydro fuel would remain India's dominant energy mix, it cannot continue to depend on coal alone. Global warming considerations and the immediate availability of clean coal technologies may constrain the coal route at least in the short term. Hydropower may also face constraints that arise from changes in the hydrological cycle triggered by long term climatic change. Hence having nuclear power in India's energy portfolio is crucial for preserving India's energy security **
*What does 123 agreement mean? *
The 123 Agreement is the terms of engagement which operationalizes the treaty agreement between India and USA for transfer of civil nuclear technology. India's right to test nuclear weapons, guarantees of lifetime fuel supply and India's right to reprocess the spent fuel have all been covered in this agreement.
* *
*What is the Hyde Act?*
The Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006, it is known as the Hyde Act. It is the legal framework for this deal and provides the legal basis for the 123 Agreement with India.
*What would the deal with USA mean for India? *
The Govt has chalked out a roadmap wherein over the next 25 years, through the deal, it has set a target of generating 20,000 MWe (unit of nuclear power) as against the current 3,900 MWe.
* *
The biggest advantage, which the UPA Govt is actually seeking is projecting to the world that it an ally of USA, which is a superpower in the world of today. The deal would provide India with access to American civilian nuclear technology. It would finally open up the door to US military technology, especially the fascinating US missile defense system.
Once the new reactors are set up, and they go critical without any time overrun, the nuclear power generation would take care of 8% of India's total power requirement. More than 80% of the power generated in India comes from coal and thermal. And that will continue but just as oil has become critical today, coal will also one day reach such a stage. And unless we have backups ready, our entire country could get unplugged. Having nuclear power could help India, over the long run, offset the rising cost of coal.
Yes, price of uranium is also mounting. Between 2005 (when the India-US nuclear deal was first proposed) and 2007 (when the 123 Agreement was finalised), since then, the spot price of uranium has quadrupled. According to a June 2008 market assessment, a further 58 per cent increase is expected. But remember unlike oil, we are dealing with more mature economies here who will supply uranium and hopefully, they will prevent the present cartelization which we see in oil.
* *
*What is the cost of nuclear power? *
At present, power from existing nuclear reactors costs, after huge subsidies, between Rs 2.70 and Rs 2.80 per kWh. The coal-fired Sasan mega power project in Madhya Pradesh will be supplying power at Rs 1.196 per unit. The real cost of power from existing nuclear reactors is around Rs 4 per unit; the cost of power produced by new reactors will be around Rs 5.50 per unit. But the economies of scale would soon start giving the advantages. Plus, these costs are today at the present levels of coal price, so when price of coal escalates further, cost would only go up.
* *
*What would the deal mean to Indian companies? *
India has plans to set up 15 plants over the next 20 years. Business worth $100 billion is expected to be generated from this nuclear deal over the next 20 years. Apart from USA and France, which would benefit immensely, Indian companies too will get a part of this juicy pie. Over 400 Indian companies are expected to benefit, mainly for those involved in making equipment for nuclear power plants.
* *
*Why did the Left withdraw support?*
The Left alleged that the deal would undermine the sovereignty of India's foreign policy. It has also stated that the Indian government was hiding certain clauses of the deal, which would harm India's indigenous nuclear program.
Hi Some interesting observations in the article, which I reproduce hereunder with my 2 cents worth of comments:
Yes, price of uranium is also mounting. Between 2005 (when the India-US nuclear deal was first proposed) and 2007 (when the 123 Agreement was finalised), since then, the spot price of uranium has quadrupled. According to a June 2008 market assessment, a further 58 per cent increase is expected. But remember unlike oil, we are dealing with more mature economies here who will supply uranium and hopefully, they will prevent the present carterization which we see in oil. *Who says that there will be no no cartel in supply of Urenium? What is NSG - if it is not a cartel?
*At present, power from existing nuclear reactors costs, after huge subsidies, between Rs 2.70 and Rs 2.80 per kWh. The coal-fired Sasan mega power project in Madhya Pradesh will be supplying power at Rs 1.196 per unit. The real cost of power from existing nuclear reactors is around Rs 4 per unit; the cost of power produced by new reactors will be around Rs 5.50 per unit. But the economies of scale would soon start giving the advantages. Plus, these costs are today at the present levels of coal price, so when price of coal escalates further, cost would only go up.
*So cost will be 5.5 Rupees per Unit against 1.2 Rupees. Who has the money to pay? and how will the Industry be competitive with 450% high cost of power? Do we see many Dabhols in the pipe line? Like Dabhol, the imported nuclear power plants ( some nos I read was like $100 Billion) will make at least some people rich, but unfortunately they will not be included in our Billionairs list since the money will be in Switzerland.* ** *We have abundant supply of low grade coal which can be used for power production and not for steel production. Coal based power plants will be a source of large scale employment in mining, equipment supply, erection, construction and operation and maintenance against totally imported nuclear power plants with imported equipements, fuel and technology. It is a great pity that our politicians and their cronies in media are misguiding our people.* ** *One silver lining though. We simply do not have the money to import and hence no major castrophy may really happen except in the political arena since we will be forced to tow the american line in internatinal affairs ( Hide Act). We can forget India Iran pipe line or having a meaningful nuclear deterrant against China or Pak. *
> At the crux of this entire political conundrum, the core issue, which lays > quite forlorn and forgotten is the nuclear issue. Today the politicians > might have turned it into an opportunity to topple the UPA Govt but few > remember that it all started with the nuclear deal.
> Surely few of these politicians would have actually taken the effort to > read the 82-page nuclear deal and tried to understand what it is all about. > Somehow that does not come as a surprise at all! So without getting into the > "political" angle of it, let us take a look at what exactly is this nuclear > issue. What would India gain if UPA wins the vote and what we stand to lose > if the deal gets cancelled?
> *What exactly is nuclear power? *
> Nuclear power is generated using Uranium, which is a metal mined in various > parts of the world. It produces around 11% of the world's energy needs, and > produces huge amounts of energy from small amounts of fuel, without the > pollution that you'd get from burning fossil fuels.
> * *
> *Where does India currently stand on nuclear power? *
> In India, nuclear power is being produced under the Nuclear Power > Corporation of India. Seventeen reactors are under operation and five > reactors are under construction. These power projects are highly capital > intensive and currently, takes care of 2.8% of the power needs of the > country. Amongst the 30 countries in the world that use nuclear power, > India's rank at 27 is one of the lowest.
> * *
> *Why nuclear power? *
> To take India's economic growth rate to greater heights, there is no doubt > that power would be required as the main fuel for this growth. Though coal, > thermal and hydro fuel would remain India's dominant energy mix, it cannot > continue to depend on coal alone. Global warming considerations and the > immediate availability of clean coal technologies may constrain the coal > route at least in the short term. Hydropower may also face constraints that > arise from changes in the hydrological cycle triggered by long term climatic > change. Hence having nuclear power in India's energy portfolio is crucial > for preserving India's energy security **
> *What does 123 agreement mean? *
> The 123 Agreement is the terms of engagement which operationalizes the > treaty agreement between India and USA for transfer of civil nuclear > technology. India's right to test nuclear weapons, guarantees of lifetime > fuel supply and India's right to reprocess the spent fuel have all been > covered in this agreement.
> * *
> *What is the Hyde Act?*
> The Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation > Act of 2006, it is known as the Hyde Act. It is the legal framework for this > deal and provides the legal basis for the 123 Agreement with India.
> *What would the deal with USA mean for India? *
> The Govt has chalked out a roadmap wherein over the next 25 years, through > the deal, it has set a target of generating 20,000 MWe (unit of nuclear > power) as against the current 3,900 MWe.
> * *
> The biggest advantage, which the UPA Govt is actually seeking is projecting > to the world that it an ally of USA, which is a superpower in the world of > today. The deal would provide India with access to American civilian nuclear > technology. It would finally open up the door to US military technology, > especially the fascinating US missile defense system.
> Once the new reactors are set up, and they go critical without any time > overrun, the nuclear power generation would take care of 8% of India's total > power requirement. More than 80% of the power generated in India comes from > coal and thermal. And that will continue but just as oil has become critical > today, coal will also one day reach such a stage. And unless we have backups > ready, our entire country could get unplugged. Having nuclear power could > help India, over the long run, offset the rising cost of coal.
> Yes, price of uranium is also mounting. Between 2005 (when the India-US > nuclear deal was first proposed) and 2007 (when the 123 Agreement was > finalised), since then, the spot price of uranium has quadrupled. According > to a June 2008 market assessment, a further 58 per cent increase is > expected. But remember unlike oil, we are dealing with more mature economies > here who will supply uranium and hopefully, they will prevent the present > cartelization which we see in oil.
> * *
> *What is the cost of nuclear power? *
> At present, power from existing nuclear reactors costs, after huge > subsidies, between Rs 2.70 and Rs 2.80 per kWh. The coal-fired Sasan mega > power project in Madhya Pradesh will be supplying power at Rs 1.196 per > unit. The real cost of power from existing nuclear reactors is around Rs 4 > per unit; the cost of power produced by new reactors will be around Rs 5.50 > per unit. But the economies of scale would soon start giving the advantages. > Plus, these costs are today at the present levels of coal price, so when > price of coal escalates further, cost would only go up.
> * *
> *What would the deal mean to Indian companies? *
> India has plans to set up 15 plants over the next 20 years. Business worth > $100 billion is expected to be generated from this nuclear deal over the > next 20 years. Apart from USA and France, which would benefit immensely, > Indian companies too will get a part of this juicy pie. Over 400 Indian > companies are expected to benefit, mainly for those involved in making > equipment for nuclear power plants.
> * *
> *Why did the Left withdraw support?*
> The Left alleged that the deal would undermine the sovereignty of India's > foreign policy. It has also stated that the Indian government was hiding > certain clauses of the deal, which would harm India's indigenous nuclear > program.
Akhil, This is very informative Article. Thanks. One question based on below. Which are the leading companies which are related to making equipments for nuclear plants ?
Regards, Amol.
*What would the deal mean to Indian companies? *
India has plans to set up 15 plants over the next 20 years. Business worth $100 billion is expected to be generated from this nuclear deal over the next 20 years. Apart from USA and France, which would benefit immensely, Indian companies too will get a part of this juicy pie. Over 400 Indian companies are expected to benefit, mainly for those involved in making equipment for nuclear power plants.
On 7/23/08, Akhil Jain <akhiljai...@gmail.com> wrote:
> At the crux of this entire political conundrum, the core issue, which lays > quite forlorn and forgotten is the nuclear issue. Today the politicians > might have turned it into an opportunity to topple the UPA Govt but few > remember that it all started with the nuclear deal.
> Surely few of these politicians would have actually taken the effort to > read the 82-page nuclear deal and tried to understand what it is all about. > Somehow that does not come as a surprise at all! So without getting into the > "political" angle of it, let us take a look at what exactly is this nuclear > issue. What would India gain if UPA wins the vote and what we stand to lose > if the deal gets cancelled?
> *What exactly is nuclear power? *
> Nuclear power is generated using Uranium, which is a metal mined in various > parts of the world. It produces around 11% of the world's energy needs, and > produces huge amounts of energy from small amounts of fuel, without the > pollution that you'd get from burning fossil fuels.
> * *
> *Where does India currently stand on nuclear power? *
> In India, nuclear power is being produced under the Nuclear Power > Corporation of India. Seventeen reactors are under operation and five > reactors are under construction. These power projects are highly capital > intensive and currently, takes care of 2.8% of the power needs of the > country. Amongst the 30 countries in the world that use nuclear power, > India's rank at 27 is one of the lowest.
> * *
> *Why nuclear power? *
> To take India's economic growth rate to greater heights, there is no doubt > that power would be required as the main fuel for this growth. Though coal, > thermal and hydro fuel would remain India's dominant energy mix, it cannot > continue to depend on coal alone. Global warming considerations and the > immediate availability of clean coal technologies may constrain the coal > route at least in the short term. Hydropower may also face constraints that > arise from changes in the hydrological cycle triggered by long term climatic > change. Hence having nuclear power in India's energy portfolio is crucial > for preserving India's energy security **
> *What does 123 agreement mean? *
> The 123 Agreement is the terms of engagement which operationalizes the > treaty agreement between India and USA for transfer of civil nuclear > technology. India's right to test nuclear weapons, guarantees of lifetime > fuel supply and India's right to reprocess the spent fuel have all been > covered in this agreement.
> * *
> *What is the Hyde Act?*
> The Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation > Act of 2006, it is known as the Hyde Act. It is the legal framework for this > deal and provides the legal basis for the 123 Agreement with India.
> *What would the deal with USA mean for India? *
> The Govt has chalked out a roadmap wherein over the next 25 years, through > the deal, it has set a target of generating 20,000 MWe (unit of nuclear > power) as against the current 3,900 MWe.
> * *
> The biggest advantage, which the UPA Govt is actually seeking is projecting > to the world that it an ally of USA, which is a superpower in the world of > today. The deal would provide India with access to American civilian nuclear > technology. It would finally open up the door to US military technology, > especially the fascinating US missile defense system.
> Once the new reactors are set up, and they go critical without any time > overrun, the nuclear power generation would take care of 8% of India's total > power requirement. More than 80% of the power generated in India comes from > coal and thermal. And that will continue but just as oil has become critical > today, coal will also one day reach such a stage. And unless we have backups > ready, our entire country could get unplugged. Having nuclear power could > help India, over the long run, offset the rising cost of coal.
> Yes, price of uranium is also mounting. Between 2005 (when the India-US > nuclear deal was first proposed) and 2007 (when the 123 Agreement was > finalised), since then, the spot price of uranium has quadrupled. According > to a June 2008 market assessment, a further 58 per cent increase is > expected. But remember unlike oil, we are dealing with more mature economies > here who will supply uranium and hopefully, they will prevent the present > cartelization which we see in oil.
> * *
> *What is the cost of nuclear power? *
> At present, power from existing nuclear reactors costs, after huge > subsidies, between Rs 2.70 and Rs 2.80 per kWh. The coal-fired Sasan mega > power project in Madhya Pradesh will be supplying power at Rs 1.196 per > unit. The real cost of power from existing nuclear reactors is around Rs 4 > per unit; the cost of power produced by new reactors will be around Rs 5.50 > per unit. But the economies of scale would soon start giving the advantages. > Plus, these costs are today at the present levels of coal price, so when > price of coal escalates further, cost would only go up.
> * *
> *What would the deal mean to Indian companies? *
> India has plans to set up 15 plants over the next 20 years. Business worth > $100 billion is expected to be generated from this nuclear deal over the > next 20 years. Apart from USA and France, which would benefit immensely, > Indian companies too will get a part of this juicy pie. Over 400 Indian > companies are expected to benefit, mainly for those involved in making > equipment for nuclear power plants.
> * *
> *Why did the Left withdraw support?*
> The Left alleged that the deal would undermine the sovereignty of India's > foreign policy. It has also stated that the Indian government was hiding > certain clauses of the deal, which would harm India's indigenous nuclear > program.
engagement in the world, this will go through, we hope, by August,'' Sharma told Bloomberg News in an interview yesterday in Singapore.
Prime Minister Manmohan Singh is renewing his push for the agreement signed with President George W. Bush in 2005 after he survived a confidence vote in parliament July 22. Still, the accord can only be ratified by U.S. lawmakers after winning the consent of the International Atomic Energy Agency and the 45- nation Nuclear Suppliers Group.
``We feel that the U.S. is sincere to engage with India and the rest of the international community because it will be a mutually beneficial engagement,'' Sharma said.
The deal, which will help boost India's power supplies and accelerate growth, needs to be approved by Congress before U.S. presidential elections in November. The White House has said it's ``mindful'' of the legislative calendar and expressed optimism the deal will be approved when it reaches Congress.
Prospects for the accord boosted shares of nuclear equipment makers yesterday as the agreement can generate more than $10 billion of orders for Indian companies, according to UBS AG.
Bharat Heavy Electricals Ltd., India's biggest power- equipment maker, had its biggest gain in five months, leading advances by Larsen & Toubro Ltd. and Areva T&D India Ltd., the local unit of the world's biggest builder of nuclear reactors.
Fuel, Reactors
The accord gives India access to fuel and nuclear reactors without joining the 1970 Nuclear Non-Proliferation Treaty. The agreement will lift restrictions imposed on suppliers of nuclear technology after India tested atomic weapons in 1974.
The agreement divided India's political parties and prompted Singh's main ally, the communist parties, to withdraw support to the government this month, saying it would weaken India's ability to pursue an independent foreign policy.
That forced Singh to prove his majority in parliament. His Congress party-led coalition won enough votes to extend its four- year term and revive the push for the deal.
The IAEA board is scheduled to vote Aug. 1 in an extraordinary meeting on whether to endorse the accord, which will give inspectors access to 14 civilian atomic reactors. The inspections agreement is a key condition for any U.S.-Indian nuclear cooperation treaty.
The agreement goes to the Nuclear Suppliers Group where the U.S., U.K., France, Russia, Japan, China and, most recently, Australia have already voiced support for giving India the necessary exemptions it needs to conduct trade in atomic material and equipment with member countries, the U.S.-India Business Council said this week.
More Power
Singh says the accord will help increase nuclear generation 10-fold and end blackouts in the world's second-most populous country after China. Shortage of power and infrastructure shaves 2 percentage points from India's annual economic growth, the finance ministry estimates. India needs to bridge that deficit to sustain growth of more than 10 percent and ease poverty.
The Bush administration bills the agreement as a way to help India meet its energy needs, bolster non-proliferation controls and strengthen U.S. relations with the Asian subcontinent.
``There is no reason why it shouldn't go through,'' Sharma said. ``This is a commitment made between the leaderships of the two largest democracies in the world. And we all honor our commitments.''
To contact the reporters on this story: Cherian Thomas in New Delhi at cthom...@bloomberg.net; Liza Lin in Singapore at lli...@bloomberg.net.
On Wed, Jul 23, 2008 at 4:17 PM, Akhil Jain <akhiljai...@gmail.com> wrote: > WHAT EXACTLY IS THIS NUCLEAR DEAL?
> By Ruma Dubey
> At the crux of this entire political conundrum, the core issue, which lays > quite forlorn and forgotten is the nuclear issue. Today the politicians > might have turned it into an opportunity to topple the UPA Govt but few > remember that it all started with the nuclear deal.
> Surely few of these politicians would have actually taken the effort to read > the 82-page nuclear deal and tried to understand what it is all about. > Somehow that does not come as a surprise at all! So without getting into the > "political" angle of it, let us take a look at what exactly is this nuclear > issue. What would India gain if UPA wins the vote and what we stand to lose > if the deal gets cancelled?
> What exactly is nuclear power?
> Nuclear power is generated using Uranium, which is a metal mined in various > parts of the world. It produces around 11% of the world's energy needs, and > produces huge amounts of energy from small amounts of fuel, without the > pollution that you'd get from burning fossil fuels.
> Where does India currently stand on nuclear power?
> In India, nuclear power is being produced under the Nuclear Power > Corporation of India. Seventeen reactors are under operation and five > reactors are under construction. These power projects are highly capital > intensive and currently, takes care of 2.8% of the power needs of the > country. Amongst the 30 countries in the world that use nuclear power, > India's rank at 27 is one of the lowest.
> Why nuclear power?
> To take India's economic growth rate to greater heights, there is no doubt > that power would be required as the main fuel for this growth. Though coal, > thermal and hydro fuel would remain India's dominant energy mix, it cannot > continue to depend on coal alone. Global warming considerations and the > immediate availability of clean coal technologies may constrain the coal > route at least in the short term. Hydropower may also face constraints that > arise from changes in the hydrological cycle triggered by long term climatic > change. Hence having nuclear power in India's energy portfolio is crucial > for preserving India's energy security
> What does 123 agreement mean?
> The 123 Agreement is the terms of engagement which operationalizes the > treaty agreement between India and USA for transfer of civil nuclear > technology. India's right to test nuclear weapons, guarantees of lifetime > fuel supply and India's right to reprocess the spent fuel have all been > covered in this agreement.
> What is the Hyde Act?
> The Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act > of 2006, it is known as the Hyde Act. It is the legal framework for this > deal and provides the legal basis for the 123 Agreement with India.
> What would the deal with USA mean for India?
> The Govt has chalked out a roadmap wherein over the next 25 years, through > the deal, it has set a target of generating 20,000 MWe (unit of nuclear > power) as against the current 3,900 MWe.
> The biggest advantage, which the UPA Govt is actually seeking is projecting > to the world that it an ally of USA, which is a superpower in the world of > today. The deal would provide India with access to American civilian nuclear > technology. It would finally open up the door to US military technology, > especially the fascinating US missile defense system.
> Once the new reactors are set up, and they go critical without any time > overrun, the nuclear power generation would take care of 8% of India's total > power requirement. More than 80% of the power generated in India comes from > coal and thermal. And that will continue but just as oil has become critical > today, coal will also one day reach such a stage. And unless we have backups > ready, our entire country could get unplugged. Having nuclear power could > help India, over the long run, offset the rising cost of coal.
> Yes, price of uranium is also mounting. Between 2005 (when the India-US > nuclear deal was first proposed) and 2007 (when the 123 Agreement was > finalised), since then, the spot price of uranium has quadrupled. According > to a June 2008 market assessment, a further 58 per cent increase is > expected. But remember unlike oil, we are dealing with more mature economies > here who will supply uranium and hopefully, they will prevent the present > cartelization which we see in oil.
> What is the cost of nuclear power?
> At present, power from existing nuclear reactors costs, after huge > subsidies, between Rs 2.70 and Rs 2.80 per kWh. The coal-fired Sasan mega > power project in Madhya Pradesh will be supplying power at Rs 1.196 per > unit. The real cost of power from existing nuclear reactors is around Rs 4 > per unit; the cost of power produced by new reactors will be around Rs 5.50 > per unit. But the economies of scale would soon start giving the advantages. > Plus, these costs are today at the present levels of coal price, so when > price of coal escalates further, cost would only go up.
> What would the deal mean to Indian companies?
> India has plans to set up 15 plants over the next 20 years. Business worth > $100 billion is expected to be generated from this nuclear deal over the > next 20 years. Apart from USA and France, which would benefit immensely, > Indian companies too will get a part of this juicy pie. Over 400 Indian > companies are expected to benefit, mainly for those involved in making > equipment for nuclear power plants.
> Why did the Left withdraw support?
> The Left alleged that the deal would undermine the sovereignty of India's > foreign policy. It has also stated that the Indian government was hiding > certain clauses of the deal, which would harm India's indigenous nuclear > program.
*Nuclear treaty – What is the importance of the treaty for nuclear power in
India?*
Indian nuclear programme – a 3 stage approach
*India has enormous thorium reserves and to enhance energy security, India's
nuclear programme envisages that U-233 (a Uranium isotope), bred from Th-232
(a Thorium isotope) would be used exclusively to meet our power
requirements. To put it in perspective, if harnessed, India's thorium
reserves are sufficient to meet the country's power requirements for 2500
years. India has therefore made utilization of thorium for large-scale
energy production a major goal of its nuclear power programme. The use of
Thorium, in generating nuclear power involves a three-stage concept:*
- *In the 1st stage, Pressurised Heavy Water Reactors (PHWRs), (elsewhere
known as CANDUs) fuelled by natural Uranium, plus light water reactors, are
used to produce Plutonium. (Currently 4,120MW in operation in India) *
- *In the 2nd stage, Fast Breeder Reactors (FBRs) utilize the
Plutonium-based fuel from Stage-1, along with Thorium, to breed U-233. This
process also produces enriched Plutonium, which is further utilized by the
FBR in the same process. (Currently 40MW prototype operational) *
- *Finally, Advanced Heavy Water Reactors (AHWRs) burn the U-233 and
Plutonium, along with Thorium, for power generation. (Small reactor as
prototype is operational) . The process generates additional U-233, which is
reprocessed for use in further power generation *
*The Indian nuclear programme has moved from its aim of being sustained
simply with thorium to one "driven" by thorium with the addition of further
fissile uranium and plutonium, to give greater efficiency. *
**
*Scarcity of uranium prevents scale up of nuclear power plants & harnessing
of thorium potential*
*India has limited natural Uranium reserves and Uranium has been in short
supply from other countries after the Pokharan Tests conducted in 1997. The
shortage of Uranium has led to capacity utilization of existing nuclear
power plants falling to less than 50% levels in some cases in FY08, making
it critical for India to secure supply of Uranium. Access to natural
Uranium, is also critical since it is the essential fuel for harnessing the
large Thorium reserves for the power capacity build up over the next 20-30
years.*
*Nuclear treaty allows India to import uranium and kick start the 3 stage
approach for nuclear power*
*The nuclear treaty, if passed by IAEA and Nuclear Suppliers Group (NSG)
would allow India to import Uranium from other countries, thereby providing
enough fuel to increase the capacity utilization of existing power plants in
the short run. In the long run, the import of Uranium will fuel power plants
based on PHWR's producing Plutonium which will further be utilized in FBR's
thereby recycling the enriched plutonium for further power generation. The
harnessing of FBR's cannot start without abundant supplies of natural
Uranium from other countries and other countries cannot sell Uranium to
India without NSG approval for the treaty. *
*40MW FBR already operational and 500MWe under construction*
*India already has a 40 MW fast breeder reactor (FBR), which has been
operating at the Indira Gandhi Centre for Atomic Research (IGCAR) since
1985. In 2002, the Atomic Energy Commission gave the go-ahead to a 500 MWe
prototype fast breeder reactor (PFBR) at Kalpakkam near Chennai. This unit
is now under construction and is expected to be operational by 2010. The
PFBR will be fuelled with uranium-plutonium oxide, the reactor-grade Pu-239
being obtained from India's existing pressurized heavy water reactors
(PHWR). In later stages, the mixed oxide fuel may be replaced by
metallic-fuelled ones to enable shorter doubling time. What is noteworthy,
however, is that the reactor core will have a Th-232 blanket to breed
fissile U-233. This will take India's ambitious thorium programme to Stage 2
and set the scene for eventual full utilization of the country's abundant
thorium to fuel reactors. *
*300MWe AHWR is undergoing development and likely to be operational by 2010*
*A 300 MWe AHWR is undergoing design and development at the Bhabha Atomic
Research Centre and is expected to be operational by 2010. This new design
is actually a thermal breeder and incorporates several new innovative
features. A smaller but similar prototype reactor called Kamini already
exists at the IGCAR and has validated the proof of concept.*
*Nuclear power plant capacity to be ramped up to 20GW by 2017 – opportunity
for construction and equipment companies*
*After the nuclear treaty is approved, India plans to set up additional
nuclear plants of 16GW by 2017 using the PHWR. As a result, we expect the
civil construction companies like HCC, Gammon & L&T to benefit from the
nuclear power plant construction whereas BHEL and Areva are likely to
benefit from the reactor and turbine orders over the long run. *
> *Hi *
> *Some interesting observations in the article, which I reproduce
> hereunder with my 2 cents worth of comments:*
> * *
> *Yes, price of uranium is also mounting. Between 2005 (when the India-US
> nuclear deal was first proposed) and 2007 (when the 123 Agreement was
> finalised), since then, the spot price of uranium has quadrupled. According
> to a June 2008 market assessment, a further 58 per cent increase is
> expected. But remember unlike oil, we are dealing with more mature economies
> here who will supply uranium and hopefully, they will prevent the present
> carterization which we see in oil. *
> *Who says that there will be no no cartel in supply of Urenium? What is
> NSG - if it is not a cartel?
> At present, power from existing nuclear reactors costs, after huge
> subsidies, between Rs 2.70 and Rs 2.80 per kWh. The coal-fired Sasan mega
> power project in Madhya Pradesh will be supplying power at Rs 1.196 per
> unit. The real cost of power from existing nuclear reactors is around Rs 4
> per unit; the cost of power produced by new reactors will be around Rs 5.50
> per unit. But the economies of scale would soon start giving the advantages.
> Plus, these costs are today at the present levels of coal price, so when
> price of coal escalates further, cost would only go up. *
> * *
> *So cost will be 5.5 Rupees per Unit against 1.2 Rupees. Who has the money
> to pay? and how will the Industry be competitive with 450% high cost of
> power? Do we see many Dabhols in the pipe line? Like Dabhol, the imported
> nuclear power plants ( some nos I read was like $100 Billion) will make at
> least some people rich, but unfortunately they will not be included in our
> Billionairs list since the money will be in Switzerland.*
> *** *
> *We have abundant supply of low grade coal which can be used for power
> production and not for steel production. Coal based power plants will be a
> source of large scale employment in mining, equipment supply, erection,
> construction and operation and maintenance against totally imported nuclear
> power plants with imported equipements, fuel and technology. It is a great
> pity that our politicians and their cronies in media are misguiding our
> people.*
> *** *
> *One silver lining though. We simply do not have the money to import and
> hence no major castrophy may really happen except in the political arena
> since we will be forced to tow the american line in internatinal affairs (
> Hide Act). We can forget India Iran pipe line or having a meaningful nuclear
> deterrant against China or Pak. *
> * *
> *On Wed, Jul 23, 2008 at 4:17 PM, Akhil Jain <**akhiljai...@gmail.com*<akhiljai...@gmail.com>
> *> wrote:
> *
>> *At the crux of this entire political conundrum, the core issue, which
>> lays quite forlorn and forgotten is the nuclear issue. Today the politicians
>> might have turned it into an opportunity to topple the UPA Govt but few
>> remember that it all started with the nuclear deal. *
>> * *
>> *Surely few of these politicians would have actually taken the effort to
>> read the 82-page nuclear deal and tried to understand what it is all about.
>> Somehow that does not come as a surprise at all! So without getting into the
>> "political" angle of it, let us take a look at what exactly is this nuclear
>> issue. What would India gain if UPA wins the vote and what we stand to lose
>> if the deal gets cancelled? *
>> * *
>> What exactly is nuclear power?
>> *Nuclear power is generated using Uranium, which is a metal mined in
>> various parts of the world. It produces around 11% of the world's energy
>> needs, and produces huge amounts of energy from small amounts of fuel,
>> without the pollution that you'd get from burning fossil fuels. *
>> Where does India currently stand on nuclear power?
>> *In India, nuclear power is being produced under the Nuclear Power
>> Corporation of India. Seventeen reactors are under operation and five
>> reactors are under construction. These power projects are highly capital
>> intensive and currently, takes care of 2.8% of the power needs of the
>> country. Amongst the 30 countries in the world that use nuclear power,
>> India's rank at 27 is one of the lowest. *
>> Why nuclear power?
>> *To take India's economic growth rate to greater heights, there is no
>> doubt that power would be required as the main fuel for this growth. Though
>> coal, thermal and hydro fuel would remain India's dominant energy mix, it
>> cannot continue to depend on coal alone. Global
