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Source: The Hindu BusinessLine

The Hindu BusinessLine
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Banking Sector
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1 min
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02 Sept
Published
Banking Sector
1 min read· The Hindu BusinessLine

Nuclear expansion push puts green finance rules in focus

India’s nuclear capacity ambitions have prompted calls to revisit green financing rules. Experts also want stronger training systems to address shortages of specialised workers.

India plans to raise nuclear generation capacity from 8.8 GW today to 100 GW by 2047. Meeting that ambition could require about $210 billion, according to industry estimates, making access to investment a central challenge alongside construction and staffing.

At an event in New Delhi, NITI Aayog member Abhay Karandikar highlighted nuclear power’s exclusion from India’s sovereign green bond and green deposit frameworks. That leaves banks unable to treat nuclear projects as eligible uses of green deposit funds under the existing arrangements. The report does not state a timeline for changing these rules.

The government opened the nuclear industry to private businesses last year to attract overseas technology and private capital. Karandikar said international financial bodies, including the World Bank, were reconsidering their approach to nuclear investment. Any resulting policy shift could create opportunities for Indian lenders to share project financing with other institutions.

Funding is only one hurdle. Kalirajan S, who heads EDF Nuclear Projects India, flagged limited specialised teaching in Indian educational institutions. A shortage of technical expertise could slow projects even when financing is available.

NITI Aayog has set up a committee to examine training needs across roles, ranging from technicians to research scientists. EDF is also beginning certification initiatives in India aimed at developing local suppliers and strengthening the skilled workforce.

Source: The Hindu BusinessLine