On 15 April 2015, India and Canada announced a $350 million deal for Canada’s Cameco Corp. to supply 3,220 metric tonnes of power to India’s reactors over the next 5 years. Amit Bhandari, energy and environment fellow at Gateway House, comments on the significance of the deal.
Statement:
“Nuclear energy generates 3.5% of India’s electricity – the country aims to increase this share to 25% by 2050. But insufficient reserves of uranium have hobbled India’s nuclear power program. The India-U.S. agreement paved the way for the country to freely import uranium, boosting nuclear power generation.
India currently has 5,780 mw of operational nuclear reactors, of which 3,380 are under IAEA safeguards and use imported fuel. The country has 9,400 mw of nuclear power plants under construction, which will require imported fuel to run. In addition, India proposes to build 10,500 mw of capacity in collaboration with Russia, France and the U.S. – all of these will also rely on imported fuel.
Therefore, India’s nuclear program is a non-starter without access to fuel. Keeping India’s existing reactors running and scaling up the nuclear program requires secure supplies of uranium.
India has so far imported nuclear fuel from Russia, Kazakhstan and France. Countries such as Canada and Australia – both of which have large uranium reserves – are stable and reliable partners. The 5-year agreement with Canada for the supply of uranium is an important step in ensuring the growth of India’s nuclear power sector.
India currently imports approximately 700 tons of uranium ore concentrate and natural uranium dioxide pellets from Russia and Kazakhstan every year. The additional supply from Canada will help India build up fuel reserves, and will be useful for the country’s indigenously designed power reactors.”
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