New Delhi: The commerce and industry ministry will be looking in to the possibility of allowing foreign investment in nuclear power sector. Prime Minister’s Economic Advisory Council (EAC) in a recent report had called for allowing entry of “reputable private companies” in to the nuclear power generation sector.
“Nuclear sector is a sensitive area. The report (by PMEAC) will be discussed. No final view has been taken at the moment,” commerce minister Anand Sharma said at the Economic Editors’ Conference here. At the moment, FDI in the nuclear power sector is not allowed along with sectors like multi-brand retail, lottery and gambling. Significantly, the Economic Survey of 2009 also called for allowing FDI in the sector, with a cap of 49 %.
PMEAC, in its report on economic outlook for 2009-10, had expressed concern at the slow pace at which power capacity has been added over the last few years. The council had called for an “active” plan of action for adding power capacity in the next 15 years, which would need greater amount of investment in the sector. “Necessary legislative changes will have to be made to allow the entry of such (private) companies with an appropriate regulatory framework, aside from giving a further impetus to the activities of the state owned companies such as Nuclear Power Corporation and other public sector companies that plan to enter the business,” the EAC report had said.
In addition, the panel also called for addition of 150,000 mw of nuclear power in the next 15 years. The 11th five year Plan has set a target of 78,000 mw of additional power, but policy experts expect only 70,000 mw to be added in the plan period. Sharma reaffirmed that exports from the country will turn positive in the last quarter of the financial year 2009-10. Indian exports have been in the negative territory since October, 2008 by latest data shows that the pace of contraction has been decreasing since April, 2009. “There has been a visible turn around. Steep fall in exports has been arrested. In the final quarter of this fiscal, we will see positive growth,” he said. Exports have dipped 13.4 % in September, the lowest in the current financial year. With improving prospects for exports, the ministry is in the process of preparing another fiscal package for exporters. “I have told the commerce secretary and the
DGFT to review exports in November. After we get the feed back, we will do more for needy sectors,” added Sharma.
Defending the new investment norms prescribed by Press Notes 2, 3 and 4 released by the Department of Industrial Policy and Promotion in February, Sharma said that the policy initiative has resulted in simplified investment related rules. “If there are any clarifications, our officials are prepared to do so,” he said. He also reaffirmed that the retail sector will not be liberalized for foreign investments. “In single brand retail we are not considering any revision. And there are no proposals to liberalise multi-brand retail,” he said
Source : FinancialExpress