P. 1
REGULATORY ISSUES for setting up a Nuclear Power Plant Final

REGULATORY ISSUES for setting up a Nuclear Power Plant Final

|Views: 7|Likes:
Published by Pranav Mishra
INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

• • • • • • •

INFRASTRUCTURE ISSUES RISK MITIGATION DEVELOPMENT CONSIDERATIONS TENDERING CONTRACT FINANCE MODELS LEGAL FRAMEWORK

Presented by:

P R AT E E K D A S G U P TA PRANAV MISHRA

NUCLEAR ENERGY

When a neutron strikes an atom of uranium, the uranium splits into two lighter atoms and releases heat simultaneously. This heat energy is used for various purpose, such as electrical power generation, powering subma
INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

• • • • • • •

INFRASTRUCTURE ISSUES RISK MITIGATION DEVELOPMENT CONSIDERATIONS TENDERING CONTRACT FINANCE MODELS LEGAL FRAMEWORK

Presented by:

P R AT E E K D A S G U P TA PRANAV MISHRA

NUCLEAR ENERGY

When a neutron strikes an atom of uranium, the uranium splits into two lighter atoms and releases heat simultaneously. This heat energy is used for various purpose, such as electrical power generation, powering subma

More info:

Categories:Types, Research, Law
Published by: Pranav Mishra on Jan 08, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

07/21/2013

pdf

text

original

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

• • • • • • •

INFRASTRUCTURE ISSUES RISK MITIGATION DEVELOPMENT CONSIDERATIONS TENDERING CONTRACT FINANCE MODELS LEGAL FRAMEWORK

Presented by:

P R AT E E K D A S G U P TA PRANAV MISHRA

NUCLEAR ENERGY

When a neutron strikes an atom of uranium, the uranium splits into two lighter atoms and releases heat simultaneously. This heat energy is used for various purpose, such as electrical power generation, powering submarines, space shuttles, nuclear bombs and missiles etc. It doesn’t emit any polluting gases which have adverse effects such as Global Warming, Acid Rain, Ozone Depletion etc. It is a highly concentrated source of energy, with 1 kg Uranium producing power of over 50,000 kWh and 35,00,000 kWh on reprocessing.

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

N U C L E A R P O W E R P R O J E C T S TA G E S

A nuclear power plant essentially has 5 stages • • • Pre-Project

Project Decision Making

Plant Construction


Plant Operation

Plant Decommissioning

The overall project life of Nuclear Power Plant is about 75 – 100 years
INFRASTRUCTURE REGULATORY ISSUES INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

N U C L E A R P O W E R P R O J E C T S TA G E S

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

NUCLEAR INFRASTRUCTURE ISSUES

International Agreements and Safeguards Financial Resources Nuclear Law

Regulatory Framework Codes and standards Safety Assessment Capabilities

Educational Programmes
Public Consultation Engineering / Manufacturing Human Resources Project Management

Physical Facilities
Communication Procurement Emergency Response Planning Construction / Commissioning

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

N U C L E A R R I S K S A N D M I T I G AT I O N

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

N U C L E A R R I S K S A N D M I T I G AT I O N

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

A S S O C I AT E D O R G A N I Z AT I O N S

THE GOVERNMENT (policy making) • • • • Energy Supply Safety and Regulation Environmental protection Domestic Infrastructure development

THE FUTURE PLANT OWNER • • • • Electricity system expansion planning Performance of economic analyses Defining the projects Obtaining licensing and executing them and operating the plant safely

THE NUCLEAR REGULATORY BODY • • • • Safety of pressure vessels, electrical installations, pollution control, environmental protection Promotion and Co-ordination between various R&D organizations Encourage participation for Nuclear Power Plant Projects Advancement of educational institutions

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

D E V E L O P M E N T C O N S I D E R AT I O N S

LAWS
Laws Concerning

Radiation Protection Nuclear Safety Plant / Material Ownership

• • • •

Law and regulations for radiation protection Law and regulations for safety of nuclear installations Compatibility of national radiation protection and nuclear safety regulations with IAEA codes Law and regulations for ownership of nuclear installations and materials


• • • • •

Law or policy concerning nuclear third party liability
Bilateral nuclear supply agreements Conventions on early notification and assistance Physical protection convention Nuclear safety convention Convention on safety of waste and spent fuel management
REGULATORY ISSUES INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

INFRASTRUCTURE

D E V E L O P M E N T C O N S I D E R AT I O N S

ENERGY AND ELECTRICITY SUPPLY POLICIES • • • • •

National Development policies and plan. Implementation mechanisms for National Development plan. National policies for the Energy and Electricity sectors. Perceptions of major constraints, priorities. Electricity tariff policies. Environmental Protection Policies and their impact on the energy sector.

FINANCIAL MECHANISM • •

Mechanisms for International Financing. Mechanisms for Local Financing.

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

D E V E L O P M E N T C O N S I D E R AT I O N S

INTERNATIONAL AGREEMENTS • • • • •

Treaty on the non-proliferation of Nuclear weapons (NPT) INFCIRC/140 Guidelines for Nuclear transfers, 1993 revision of NSG London guidelines Convention on the prevention of Marine pollution by dumping of wastes and other matter (London Dumping Convention), INFCIRC/205 International Convention for the safety of life at sea Convention for the suppression of Acts of Nuclear Terrorism

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

TENDERS

Information provided by the owner 1. INVITATION LETTER 2. ADMINISTRATIVE INSTRUCTIONS 3. GENERAL INFORMATION 4. TECHNICAL REQUIREMENTS 5. SCOPE OF SUPPLY AND SERVICES 6. NATIONAL PARTICIPATION 7. BID EVALUATION CRITERIA 8. DRAFT CONTRACT TERMS AND CONDITIONS 9. COMMERCIAL CONDITIONS 10. SAFETY AND SECURITY CONSTRAINTS

Information requested from bidders 1. GENERAL INFORMATION 2. GENERAL TECHNICAL ASPECTS 3. TECHNICAL DESCRIPTIONS 4. SCOPE OF SUPPLY AND SERVICES 5. ALTERNATIVES AND OPTIONS 6. QUALITY ASSURANCE PROGRAMME 7. TRAINING 8. PROJECT SCHEDULE 9. TECHNOLOGY TRANSFER 10. GUARANTEES AND WARRANTIES 11. DEVIATIONS AND EXCEPTIONS 12. COMMERCIAL CONDITIONS

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

CONTRACT
Contract conditions • • • • • • • Financing arrangements Down-payments Governmental approval or authorization International commitments Safeguards requirements Export license, construction license, operation license Pertinent regulatory and licensing requirements.

Turnkey Contract

Split Package Contract

1. The owner has one contract with the main supplier. 2. The main supplier has overall responsibility for construction, and turns over responsibility for the project to the owner/operator in stages during the commissioning phase.
INFRASTRUCTURE REGULATORY ISSUES

1. The owner has multiple contracts with suppliers. 2. The overall responsibility is divided between a relatively small number of contractors, each building a large section of the work.
INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

CONTRACT

Contract Components

•Definitions •General clauses •Object of the contract •Planning and execution of the work •Information, inspection, testing and control •Assignment of the work and subcontracting •National participation and technology transfer •Training of personnel •Changes and additional work •Transport and customs clearance •Risks and transfer of title •Liability •Insurances •Quality assurance

•Licensing •Delivery times •Documentation •Spare and wear parts, consumables and special tools •Guarantees or warranties •Take-over •Prices, price adjustments and terms of payment •Force majeure •Termination and suspension of the contract •Guarantee of title and proprietary information •Execution of the contract •Applicable law •Arbitration

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

FINANCING

Major Challenges • The high capital cost and technical complexity of NPPs, which present relatively high risks during both construction and operation • The relatively long period required to recoup investments or to repay loans for NPP construction, which increases the risk from electricity market uncertainties


The often controversial nature of nuclear projects, which
gives rise to additional political and regulatory risks The need for clear solutions and financing schemes for radioactive waste management and decommissioning, which only governments can formulate

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

FINANCING

Financial Model for project fully financed through government guarantee.

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

FINANCING
Financial Model for Public Private Partnership projects. The private sector investors bring the equity and loans and the government participates through assets and risk mitigation mechanisms.

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

LEGAL FRAMEWORK
Nuclear laws and regulations address the following • • •

THE SAFETY PRINCIPLE (PREVENTION AND PROTECTION) THE SECURITY PRINCIPLE (PEACEFUL USE OF NUCLEAR POWER) THE RESPONSIBILITY PRINCIPLE (OPERATOR OR LICENSEE)


• • • •

THE PERMISSION PRINCIPLE (REVIEW AND AUTHORIZATION BY REGULATORY BODY)
THE CONTINUOUS CONTROL PRINCIPLE (RIGHT OF INSPECTION AND ACCESS BY THE REGULATORY BODY) THE COMPENSATION PRINCIPLE (EXTENT OF NUCLEAR LIABILITY) THE SUSTAINABLE DEVELOPMENT PRINCIPLE (PROTECTION OF FUTURE) THE COMPLIANCE PRINCIPLE (INTERNATIONAL AND TRANSBOUNDARY AGREEMENTS, TREATIES AND CONVENTIONS)

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

LEGAL FRAMEWORK
List of clearances required for setting up a Nuclear Power Plant 1. Clearance of the Ministry of Environment and Forests 2. Clearances from the Gol (Civil Aviation Department) and the Director, National Airports Authority in connection with the height of any chimneys. 3. Confirmations from the Department of Economic Affairs, Ministry of Finance, the Department of Industrial Development, Ministry of Industry, the Department Company Affairs and the RBI, that the Company is permitted to enter into the Financing Agreements, 4. Consent of Gol to the issue of equity to Foreign investors 5. Consent of RBI for the subscription by he Foreign Investors in Shares in the Company pursuant to Section-29 of FEMA (Foreign Exchange Management Act 1999) 6. Consent of RBI for the provision by the Company of guarantees and / or indemnities and the ability of lenders and suppliers to receive payments in enforcement thereon including liquidated damages pursuant to Section-9 and 26 of FEMA 1999. 7. Consent of RBI for payment to non-resident directors of the Company-Commissioner of Electricity 8. Consent of RBI for the Company to establish and office outside India pursuant to Section-8 of FEMA 1999 and to acquire immovable property to Section-25 of FEMA, 1999 9. Approval of the Chief Engineer Inspector for the Power Station

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

LEGAL FRAMEWORK
List of clearances required for setting up a Nuclear Power Plant 10. Exemption from Section-10(15)(iv) of the Income Tax Act 1961 in connection with the interest and other charges payment by the company on offshore debt 11. Permission from the Director General of Foreign Trade for the various imports pursuant to the Foreign Trade (Development and Regulation) Act 1992. 12. Land acquisition Power plant – Land Acquisition Act 1894 13. Techno economic clearance under section 30 of Electricity Supply) Act, 1948 14. Permission from the Directorate General of Technical Development / Director General of Foreign Trade to import helicopters, Aircrafts, Ships or other such vessels under the Foreign Trade (Development and Regulation) Act, 1992 15. Consent under the Factories Act 1948 relating to firefighting capability 16. Tax confirmations and clarification in relation to the treatment of capital gains and offshore securities offered by the Company and exemptions under Section-10(15)(iv) of the Income Tax Act, 1961 in relation to any interest payable by the Company on offshore debt securities.

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

LEGAL FRAMEWORK
List of clearances required for setting up a Nuclear Power Plant 17. A certificate form the General Insurance Corporation or any of its subsidiaries to the effect that such insurance or reinsurance cannot be obtained from them 18. Consent from the Gol (Controller of Insurance) to the effecting by the Company of such insurance and / or reinsurance with offshore insurers and/ reinsures and 19. Consent from RBI under FERA 1973/FEMA 1999 for the taking out of insurance and / or reinsurance with offshore insures and / or reinsures and for the payment of any premiums thereunder 20. Permission from the Director General of Foreign Trade for the import of spares pursuant to the Foreign Trade Development and Regulation Act 1992 21. Consent of the Direction General of Civil Aviation to use and operate an airstrip and helicopter landing pad, and use and operate a helicopter and / or other aircraft pursuant of the Aircraft Act 1934

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

LEGAL FRAMEWORK
NUCLEAR LIABILITY BILL India framed the civil liability for Nuclear damage bill 2010, which stipulates the compensation burden on the state-run reactor operator, the liability of government and the responsibility of private suppliers and contractors. Some major features of the bill are: • • • • The Atomic Energy Regulatory Board has to notify a nuclear incident within 15 days from the date of a nuclear incident occurring. The operator of a nuclear installation will be liable for nuclear damage caused by a nuclear incident in that installation or if he is in charge of nuclear material that caused the incident. If more than one operator is liable for nuclear damage, all operators shall be jointly, and severally liable to pay compensation for the damage. The Bill states that the total liability for a nuclear incident shall not exceed the rupee equivalent of 300 million Special Drawing Rights (Approximately Rs. 2100 crore)

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

T H E AT O M I C E N E R G Y A C T, 1 9 6 2

The Atomic Energy Regulatory Board (AERB) was constituted on November 15, 1983 by the President of India by exercising the powers conferred by Section 27 of the Atomic Energy Act, 1962 (33 of 1962) to carry out certain regulatory and safety functions under the Act. The regulatory authority of AERB is derived from the rules and notifications promulgated under the Atomic Energy Act, 1962 and the Environmental (Protection) Act, 1986

Some of the important sections of the Atomic Energy Act are given as follows.

Section 2-1-(e) "Plant" includes machinery, equipment or appliance whether affixed to land or not. Section 3-1-(e) To provide for control over radioactive substances or radiation generating plant in order to • Prevent radiation hazards • Secure public safety and safety of persons handling radioactive substances • Ensure safe disposal of radioactive wastes.

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

T H E AT O M I C E N E R G Y A C T, 1 9 6 2
Section 10.1-(c) Rights to use and occupy the surface of any land for the purpose of erecting any necessary buildings and installing any necessary plant Section 10-1-(d) Rights to use and occupy for the purpose of working the minerals and to use or acquire any plant used in connection with any such mine or quarry Section 10-(3) Compensation in respect of any right acquired under this section shall be paid in accordance with section 21 Section 22(1) Notwithstanding anything contained in the Electricity (Supply) Act1948, the Central Government shall have authority (a) to develop a sound and adequate national policy in regard to atomic power, to co-ordinate such policy with the Central Electricity Authority and the State Electricity Boards constituted under section 3 and 5 (b) to fix rates for and regulate the supply of electricity from atomic power stations, with the concurrence of the Central Electricity Authority

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

NUCLEAR POWER IN INDIA
The Nuclear Power Corporation of India Limited (NPCIL), a Public Sector Undertaking (PSU) under the Department of Atomic Energy, was registered as a public limited company under the Companies Act in September, 1987 with the objective of operating the Atomic Power Stations and implementing the Atomic Power Projects for the generation of electricity in pursuance of the schemes and programmes of the Government of India under the Atomic Energy Act, 1962.

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

NUCLEAR POWER PROJECTS

INFRASTRUCTURE

REGULATORY

ISSUES

INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->