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PARLIAMENT OF INDIA RAJYA SABHA DEPARTMENT-RELATEDPARLIAMENTARY STANDING COMMITTEE ON SCIENCE & TECHNOLOGY, ENVIRONMENT & FORESTS ONE HUNDRED SEVENTY-SIXTH REPORT ON DEMANDS FOR GRANTS (2007-2008) OF THE DEPARTMENT OF ATOMIC ENERGY (DEMAND NOs. 5 & 6) (PRESENTED TO THE RAJYA SABHA ON 26 TH APRIL, 2007) (LAID ON THE TABLE OF THE LOK SABHA ON 26 TH APRIL, 2007) RAJYA SABHA SECRETARIAT NEW DELHI APRIL, 2007/VAISAKHA, 1929 (SAKA) Email: [email protected] Website : http://rajyasabha.nic.in C O N T E N T S 1. COMPOSITION OF THE COMMITTEE 2. INTRODUCTION 3. REPORT OF THE COMMITTEE 4. SUMMARY OF THE RECOMMENDATIONS 5. MINUTESOFTHEMEETINGSOFTHECOMMITTEE COMPOSITION OF THE DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON SCIENCE AND TECHNOLOGY, ENVIRONMENT AND FORESTS (YEAR 2006) 1. Shri P.G. Narayanan –– Chairman

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PARLIAMENT OF INDIA

RAJYA SABHA DEPARTMENT-RELATEDPARLIAMENTARY STANDING

COMMITTEE ON SCIENCE & TECHNOLOGY, ENVIRONMENT & FORESTS

ONE HUNDRED SEVENTY-SIXTH REPORT ON

DEMANDS FOR GRANTS (2007-2008) OF THE

DEPARTMENT OF ATOMIC ENERGY (DEMAND NOs. 5 & 6)

(PRESENTED TO THE RAJYA SABHA ON 26TH APRIL, 2007) (LAID ON THE TABLE OF THE LOK SABHA ON 26TH APRIL, 2007)

RAJYA SABHA SECRETARIAT NEW DELHI

APRIL, 2007/VAISAKHA, 1929 (SAKA) Email: [email protected]

Website : http://rajyasabha.nic.in

C O N T E N T S

1. COMPOSITION OF THE COMMITTEE 2. INTRODUCTION 3. REPORT OF THE COMMITTEE 4. SUMMARY OF THE RECOMMENDATIONS 5. MINUTESOFTHEMEETINGSOFTHECOMMITTEE

COMPOSITION OF THE DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON SCIENCE AND TECHNOLOGY,

ENVIRONMENT AND FORESTS (YEAR 2006)

1. Shri P.G. Narayanan –– Chairman

RAJYA SABHA

2. Dr.Prabha Thakur #3. Vacant

4. Shri Suryakantbhai Acharya 5. Shri Bhagirathi Majhi 6. Shri Kamal Akhtar 7. Shri Saman Pathak 8. Shri Jabir Husain 9. Shri Ravula Chandra Sekar Reddy

10. Dr. Barun Mukherjee

LOK SABHA 11. Shri Jashubhai Dhanabhai Barad

12. Dr. Sujan Chakraborty 13. Shri Thupstan Chhewang 14. Shri Pankaj Chaudhary 15. Shri Francis Fanthome 16. Shri Babubhai K. Katara 17. Shri A. Venkatesh Naik 18. Shri Brahmananda Panda 19. Smt. Neeta Pateriya 20. Shri Jaysingrao Gaikwad Patil 21. Shri Pratik Prakashbapu Patil 22. Shri Bachi Singh ‘Bachda’ Rawat 23. Shri K.C. Singh “Baba” 24. Shri Kirti Vardhan Singh 25. Shri Rakesh Singh 26. Shri Aruna Kumar Vundavalli 27. Smt. Jayaben B. Thakkar 28. Shri Akhilesh Yadav 29. Shri Mitrasen Yadav 30. Shri Sita Ram Yadav

*31. Shri Rampal Singh

SECRETARIAT

Shri N.C. Joshi, Additional Secretary Shri R.K. Singh, Officer on Special Duty Shri Alok Kumar Chatterjee, Deputy Secretary Shri Jagmohan Sundriyal, Under Secretary

Shri S. Rangarajan, Committee Officer

INTRODUCTION

I, the Chairman of the Department-related Parliamentary Standing Committee on Science & Technology, Environment & Forests, having been authorised by the Committee to present the Report on its behalf, present this One Hundred Seventy-sixth Report of the Committee. This Report deals with the detailed Demands for Grants (2007-2008) of the Department of Atomic Energy (Demand Nos. 5&6). 2. In the meeting of the Committee held on 2nd April, 2007 the Secretary and other Officers of the Department of Atomic Energy gave an overview of the various activities of the Department and the Members sought clarifications on various aspects of the performance of the Department to enable it to scrutinise the Demands for Grants. 3. The Committee expresses its thanks to the Officers of the Department for replying to the clarifications sought by the Members and placing before it the required material to enable the Committee to scrutinise the Demands for Grants of the Department of Atomic Energy. 4. The Committee considered and adopted the Report at its meeting held on the 20th April, 2007. NEW DELHI; April 20, 2007

P.G.NARAYANAN Chairman,

Department-related

Parliamentary Standing Committee

on Science & Technology, Environment & Forests

REPORT The Atomic Energy Commission (AEC) is the apex body for formulation of policies and

direction of the programmes relating to peaceful uses of atomic energy in electricity generation,

medicine, agriculture and industry. The Commission implements its policies and programmes

through the Department of Atomic Energy (DAE). 2. DAE is engaged in research, technology development and commercial operations in the areas

of nuclear energy, high technologies and supports basic research. The DAE’s mandate is as

follows: • Production of safe and economical nuclear power, using indigenous uranium and thorium

resources. Towards this end, it is involved in developing in stages, pressurised heavy water

reactors, fast breeder reactors and thorium reactors with associated fuel cycle facilities; • Building and operation of research reactors for the production of radioisotopes and carrying

out programmes on isotope and radiation technology applications in medicine, agriculture

and industry; • Development in advanced technology areas such as accelerators, lasers, super computers,

advanced materials and instrumentation and encouragement to transfer technology to

industry; • Support to basic research in nuclear energy and related frontier areas of Science; interaction

with universities and academic institutions; • Support to research and development projects having a bearing on DAE’s programmes and

international cooperation in related advanced areas of research, and • Enrich University System through beneficial interaction with the system. • Contribution to national security.

3. The plan projects of the DAE are classified under broad major programmes relating to

various fields of activities. The major programmes can be further sub-divided to form cluster of

similarly placed projects in convenient groups. In line with its mandate, DAE has formulated its

activities under a set of major programmes (MP) as follows: Major Programme – 1 :

Nuclear Power Programme - Stage 1. (Natural uranium fuelled Pressurised Heavy Water Reactors - PHWRs - and associated front

and back end Fuel Cycle Facilities). Major Programme – 2 :

Nuclear Power Programme - Stage 2. (Envisages setting up of Fast Breeder Reactors - FBRs - backed by reprocessing plants and

plutonium based Fuel Fabrication Plants). Major Programme – 3 :

Nuclear Power Programme - Stage 3 - and Beyond. (Based on Thorium Reactors)

Major Programme – 4 : Advanced Technologies and Radiation Technologies and their Applications.

Major Programme – 5 : (Basic Research)

Major Programme – 6 : (Research Educational Linkage).

Major Programme – 7 : (Infrastructure and Housing)

4. DAE’s Plan programmes are multidisciplinary in nature. For their execution, DAE has

evolved as a broad based organisation comprising research centres, industrial units, public sector

undertakings and fully aided autonomous institutions, along with service organisations. These

organisations are engaged in research, technology development and commercial

operations in the areas of nuclear power and associated technologies, radiation technologies and their applications, and basic research. These also enrich

university system through beneficial interaction with the system. 5. DAE has under its aegis – 5.1 Five Research Centres : - Bhabha Atomic Research Centre (BARC) – Mumbai, - Indira Gandhi Centre for Atomic Research (IGCAR) – Kalpakkam, - Raja Ramanna Centre for Advanced Technology (RRCAT) – Indore - Variable Energy Cyclotron Centre (VECC) – Kolkata,

- Atomic Minerals Directorate for Exploration and Research (AMD) – Hyderabad. 5.2 Three Industrial Organisations : - Heavy Water Board (HWB) – Mumbai - Nuclear Fuel Complex (NFC) – Hyderabad - Board of Radiation and Isotope Technology (BRIT) – Mumbai. 5.3. Three Service Organisations: - Directorate of Purchase & Stores (DPS) – Mumbai - Directorate of Construction, Services and Estate Management (DCSEM) – Mumbai - General Services Organisation (GSO) – Kalpakkam. 5.4 Five Public Sector Undertakings : - Nuclear Power Corporation of India Ltd. (NPCIL) – Mumbai - Bharatiya Nabhikiya Vidyut Nigam Ltd., Kalpakkam, Tamil Nadu - Uranium Corporation of India Ltd. (UCIL) – Jaduguda - Indian Rare Earths Ltd. (IREL) – Mumbai - Electronics Corporation of India Ltd. (ECIL) – Hyderabad. 5.5 Eight Aided Institutions : - Tata Institute of Fundamental Research (TIFR) – Mumbai - Tata Memorial Centre (TMC) – Mumbai - Saha Institute of Nuclear Physics (SINP) – Kolkata - Institute of Physics (IOP) – Bhubaneshwar - Harish-Chandra Research Institute (HRI) – Allahabad - Institute of Mathematical Sciences (IMSc) – Chennai - Institute for Plasma Research (IPR) – Ahmedabad - Atomic Energy Education Society (AEES) – Mumbai 5.6 In addition to the above, DAE, through Board of Research in Nuclear Sciences (BRNS)

and National Board for Higher Mathematics (NBHM) promotes research in nuclear and allied

fields and mathematics, respectively. 6. The Programmes of DAE have been divided into the following Sectors for the purpose of

allocation of funds: 6.1 Research and Development Sector

6.1.1 This Sector includes research support for nuclear power programme as well as research

and development in non-electricity areas. It covers research and development for new power

reactor concepts and long term research, radioisotope technology with applications in medicine,

agriculture, industry and research; advanced technologies relating to accelerator, laser, computers,

materials and others, and basic and applied research in frontier areas of science and technology. 6.2 Industries and Minerals Sector 6.2.1 This Sector covers the programmes relating to the industrial units carrying out nuclear fuel

cycle activities and industrial applications of nuclear energy in non-electricity fields. 6.2.2 The Nuclear Fuel Cycle programme covers industrial activities which are ancillary to the

nuclear power sector and comprises design, construction and operation of industrial plants for ore

refining, fuel fabrication, heavy water production and others. 6.2.3 The programme relating to the Industrial Applications of Nuclear Energy in the non-

electricity fields addresses applications of radioisotope, laser and accelerator technologies in

medicine, food preservation, agriculture, industry and other such areas. 6.3 Power Sector 6.3.1 This Sector deals with the generation of electricity on commercial basis. It covers design,

construction and operation of pressurized heavy water reactors, fast breeder reactors and thorium

reactors, with associated safety aspects, on commercial scale as well as waste management

environment monitoring. 7. BUDGETARY SYSTEM The funding (Plan & Non-Plan) of the Sectors discussed above falls, as per the guidelines of the

Planning Commission/Ministry of Finance, under the following Demand numbers: 7.1 Demand No. 5 - Atomic Energy It covers expenditure of DAE and its organizations (Research & Development, Industries

and Minerals Sectors), as well as DAE Secretariat and Atomic Energy Regulatory Board (AERB).

7.2 Demand No. 6 - Nuclear Power Schemes It covers expenditure towards (i) Financial support to Nuclear Power Corporation of India Ltd.,

(ii) Investment in equity to Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI), (iii) Waste

Immobilisation Plants, (iv) R&D work related to Prototype Fast Breeder Reactor (PFBR) and (iv)

Operational expenses of Rajasthan Atomic Power Station (RAPS) Unit-I and Fuel Inventory. 8. PLAN OUTLAY 2007-08 Demand No. 5 – Atomic Energy 8.1 The Plan Outlay for 2007-08 is Rs. 1215.00 crore (Outlay in 2006-07 was Rs.1003.00

crore) for Research and Development Sector is for pursuing the continuing Schemes of X Plan and

the new schemes of XI Plan of the Atomic Energy at the Bhabha Atomic Research Centre, Indira

Gandhi Centre for Atomic Research, Raja Ramanna Centre for Advanced Technology, Variable

Energy Cyclotron Centre, Atomic Minerals Directorate for Exploration and Research, Tata

Institute of Fundamental Research, Tata Memorial Centre, Saha Institute of Nuclear Physics,

Institute of Physics, Institute for Plasma Research, Harish-Chandra Research Institute, Institute for

Mathematical Sciences, Atomic Energy Education Society and other institutions like Board of

Research in Nuclear Sciences, National Board for Higher Mathematics, etc. in the field of nuclear

science, carrying out national programmes and also for providing housing and infrastructural

facilities for the various Units and Aided Institutions of the Department and to meet the

expenditure towards International Thermonuclear Experimental Reactor (ITER). National Institute

of Science, Education and Research (NISER) is being setup at Bhubaneswar. 8.2 The Outlay for 2007-08 is Rs. 1227.14 crore (Outlay in 2006-07 was Rs. 921.17 crore) for

Industries and Minerals Sector. The Plan Outlay consists of Rs.931.85 crore, by way of budgetary

support and Rs.295.29 crore by way of Internal and Extra Budgetary Resources of Indian Rare

Earths Ltd. (IREL), Electronics Corporation of India Ltd. (ECIL) and Uranium Corporation of

India Ltd. (UCIL), the Public Sector Undertakings of the Department. The budgetary support

includes provisions for XI Plan new schemes and X Plan continuing schemes of Bhabha Atomic

Research Centre, Indira Gandhi Centre for Atomic Research, Nuclear Fuel Complex and Heavy

Water Board. Other Projects include development works as well as survey, prospecting and

exploration being pursued by Atomic Minerals Directorate for Exploration and Research. The

outlay also includes for Board of Radiation and Isotope Technology for execution of projects

relating to production of radio-isotopes and nuclear medicines for supply to various hospitals and

industries including processing facility for cyclotron produced radio isotopes and

radiopharmaceuticals. From the budgetary support, Investment in Equity in Uranium Corporation

of India Ltd., a Public Sector Undertaking of the Department is also envisaged.

Demand No. 6 – Nuclear Power Schemes 8.3 The total Outlay under Power Sector for 2007-08 is Rs. 4125.15 crore (Outlay in 2006-07

was Rs. 3897.10 crore). The Plan Outlay consists of Rs.2449.15 crore by way of budgetary support

and Rs. 1676.00 crore by way of Internal and Extra Budgetary Resources. Of the total budgetary

support the provision includes (Rs. 926.00 Crore for investment in equity for Bharatiya Nabhikiya

Vidyut Nigam Ltd. (BHAVINI). The provision also includes Rs. 1418.09 crore for the Externally

Aided Projects at Kudankulam being executed by the Nuclear Power Corporation of India Ltd.

with the assistance of Russian Federation. Projects of Bhabha Atomic Research Centre and that

of Indira Gandhi Centre for Atomic Research are to provide R&D Support for the Power

programme. 9. The Committee was provided with a comparative statement showing the Budget

Estimates 2007-2008 (Gross) which were proposed and finally

approved. BE 2007 - 2008 (Rs in crore)

Proposed Approved Variation

Demand No. 5 Atomic Energy Plan (BS) 2386.86 2146.85 -240.01

Plan (IEBR) 295.29 295.29 0

Total Plan 2682.15 2442.14 -240.01

Non Plan 2912.59 2468.71 -443.88

Total 5594.74 4910.85 -683.89

Demand No. 6 Nuclear Power Schemes

Plan (BS) 2751.18 2449.15 -302.03

Plan (IEBR) 1676.00 1676.00 0

Total Plan 4427.18 4125.15 -302.03

Non Plan

1345.20 1345.20 0.00

Total

5772.38 5470.35 -302.03

Demand 5 + 6

Plan (BS) 5138.04 4596.00 -542.04

Plan (IEBR) 1971.29 1971.29 0

Total Plan 7109.33 6567.29 -542.04

Non Plan

4257.79 3813.91 -443.88

Total

11367.12 10381.20 -985.92

BS = Budgetary Support IEBR = Internal and Extra Budgetary Resources. 10. In reply to a query regarding adequacy of funds allocated to the Department, the Committee

was informed that the allocation under Plan schemes is sufficient to meet the targeted activities

under the Demand No 5 Atomic Energy . The short fall under Demand No 6 Nuclear Power

Schemes will be reviewed at Revised Estimates stage depending upon the necessity of funds which

is mainly for the Russian credit for the ongoing nuclear power project of Nuclear Power

Corporation of India Limited at Kudankulam. 11. The Committee was also informed that as far as the non-plan allocation is concerned, the

shortfall under the Non-Plan side of the Demand No. 5 Atomic Energy is Rs 443.88 crore.

Major portion of this is intended for Industries sector where operational needs of the Heavy Water

Production, Nuclear Fuel Complex, Fuel Reprocessing Plants of Bhabha Atomic Research

Centre(BARC), etc Further the operational and maintenance expenditure towards the completed

X Five Year Plan schemes, apart from the O & M expenditure of the existing facilities are also

likely to be affected on account of the shortfall in allocation of the non plan funds. 11.1 As the lower allocation may affect the operational requirement, Department will request

for augmentation of funds through the first/second batch of Supplementary Grants. The Ministry

of Finance also indicated that the additionality beyond the approved BE 2007-08 under non-plan

will be considered at Revised Estimates stage. 11.2 The Committee observes that the Department has informed the Committee regarding a

similar reduction of Rs. 312.89 crores in the non-plan allocation under demand no. 5, during the

Demands for Grants for the year 2006-07, and the Department had raised its concerns on the

operational needs of the Heavy Water Plants, Nuclear Fuel Complex, Board of Radiation and

Isotope Technology, Fuel Reprocessing Plants of the BARC. The Committee had accordingly

recommended in its 160th Report (recommendation no.15) that any curtailment of funds in a crucial

sector like Atomic Energy could delay the endeavour of the Department to increase the

contribution of nuclear power in the total power production and in other important areas of

the country. 11.3 The Committee expresses its serious concern at the fact that the issue has not been

resolved and has arisen again and there has been reduction of Rs. 443.88 crores in the non-plan

allocation under demand no. 5 for year 2007-08; which is even more than the earlier reduction of

Rs. 312.89 crores during the year 2006-07. 11.4 The Committee strongly feels that any curtailment of funds for operational and maintenance

reasons and any institute especially like BARC, which is involved in high-end and innovative

research areas, slows down the pace of sustained growth attained over the years in the field of

atomic energy. The Committee therefore stronglyrecommends that the Department should take

up the issue of persistent reduction in the non-plan allocation (Demand No. 5) with the

Ministry of Finance expeditiously and impress upon them the urgent need for increased allocation

to enable the Department to maintain the progress in field of nuclear energy.

12. NUCLEAR POWER PROJECTS UNDER CONSTRUCTION

12.1 The Committee was informed that presently, six reactors at three sites namely, 2x1000

MWe LWRs at Kudankulam (Tamilnadu); 2x220 MWe PHWRs at Kaiga (Karnataka) and 2x220

MWe PHWRs at Rawatbhata (Rajasthan) are under construction. Their estimated cost and

schedule of completion are summarised in the following Table:

Scheme/ Location

Capacity (MWe) Cost <Rs. In Cr.> Completion Date

Original Revised Anticipa- ted

Approved Actual / Anticipated

Kudankulam Nuclear Power Project (KKNPP-1&2)

2X1000 LWRs

13171 13171

Unit-1 Dec 2007 Unit-2 Dec 2008

Unit-1 Dec 2007 Unit-2 Dec 2008

Kaiga Atomic Power Project Units -3&4 (Kaiga-3&4)

2X220 PHWRs

4213 3282 2877

Unit-3 March 2007 Unit-4 Sep 2007

Unit-3 March 2007 Unit-4Sep 2007

Rajasthan Atomic Power Project Units-5&6 (RAPP-5&6)

2X220 PHWRs

3072 2800

Unit-5 Aug 2007 Unit-6 Feb 2008

Unit -5 Aug 2007 Unit-6 Feb 2008

12.2 The Committee was also informed that out of the six units under construction with a total capacity

of 2880 MWe, one unit i.e. Kaiga-3 of 220 MWe is targeted for completion during the X Plan i.e. by March,

2007. Completion of the remaining five units with capacity addition of 2660 MWe (Kaiga-4, KKNPP-1&2

and RAPP-5&6) is planned during the first two years of the XI Plan. The Committee was further informed in

the meeting held on the 2nd April, 2007, that Kaiga-3 has achieved criticality in February, 2007.

12.3 The Committee commends the fact that Kaiga-3 has attained criticality in February, 2007, which is

one month ahead of the actual/anticipated date of completion i.e. March, 2007. The Committee also

commends the Department for the progress made on the construction of the remaining five nuclear power

units which are progressing as per schedule. The Committee is of the opinion that in view of the severe

shortage of power being faced by the country presently, nuclear energy is fast appearing to be an inevitable

answer to sustain the power requirements of the country. The Committee therefore desires that the pace of

construction should be maintained for the ongoing power projects and in future efforts should be made to

complete the planned projects within the targeted dates.

13. MONITORING MECHANISMS FOR ONGOING PROJECTS

13.1 In reply to a query regarding the details of mechanisms developed by the Department to monitor and

review the progress of the ongoing schemes before formulating/finalizing proposals for budgetary support;

the Committee was informed that the structure of monitoring and review mechanism of projects in the

Department of Atomic Energy is as follows: (i) First the Project Co-ordinator and his group of people reviews and monitors the progress of ongoing

projects on day to day basis. (ii) Above this, the Unit Head reviews and monitors the projects on month-to-month basis and tries to

remove constraints/lacuna if any and monitors the financial and physical progress of projects. (iii) Finally, at the Department level, Special Secretary/Secretary takes monitoring and review meeting

quarterly to review the physical and financial progress of the projects and tries to remove any procedural

bottleneck amongst the Units/Divisions for smooth progress of projects so that there is no time/cost overrun

of projects. (iv) After the above review process the Department assesses the requirement of fund in each

project and formulates the proposal for budgetary support in the form of RE for the current year

and BE for the next financial year. 13.2 The Committee was also informed that apart from this, 20 Specialist Groups (SG) have

been formed one each for one theme for overseeing the activities of Department during XI

Plan. Also Internal Working Groups (IWG) for each sector have been formed to formulate, review

and monitor the progress of XI Plan Schemes.

13.3 The Committee desires that the existing reviewing mechanisms developed by the

Department to monitor and review the progress of the ongoing schemes/projects before

formulating/finalizing proposals for budgetary support should be strengthened to eliminate the

scope of shortage or surrender of funds at a later stage. 14. UNDER UTILIZATION OF FUNDS IN THE YEAR 2006-07 14.1 In reply to a query pertaining to the details of projects where funds have remained unutilized

in the year 2006-07 and measures taken by the department to complete them within a specified

time frame; the Committee was informed as follows: 14.2 Power Sector: 14.2.1 Under the Power Sector, the RE 06-07 was reduced by Rs.526.32. The NPCIL has decided

not to avail Equity assistance as the projects under NPCIL is funded by Internal surplus (IEBR)

in view of the large equity base and strong position of cash surplus to meet the equity commitments

of the ongoing project. Reduction also was made under the investment to Bharatiya Nabhikiya

Vidyut Nigam Ltd. (BHAVINI) due to delay in finalization of the contracts for supply of

equipment and materials as these are first of its kind. It is expected that the progress as targeted

in 2007-08 will be fully achieved and accordingly budgetary provision is made in BE 2007-08. 14.3 Mineral Sector: 14.3.1 Under the Mineral sector, an amount of Rs.89.58 crore was reduced mainly due to scaling

down the investment in Uranium Corporation of India Ltd. as they could not get the statutory

clearance from various agencies. Reduction was made in DAE Projects due to slow progress of

the Projects. Reduction under Atomic Minerals Directorate (AMD) projects was made due to non

availability of platform for heliborne survey in parts of Cuddapah basin. The Projects are expected

to get materialized during 2007-08 and accordingly the budget provided in 2007-08.

14.4 Industries Sector : 14.4.1 Under Industries sector the RE 06-07 was reduced by Rs.61.16 crore. This was mainly

under the various projects of Nuclear Fuel Complex, Heavy Water Board, Indira Gandhi Centre

for Atomic Research , Board of Radiation and Isotope Technology etc due to delay in procurement

of equipment , delay in mechanical, instrumentation work and retendering of procurement of some

of the equipments for New Zirconium Complex, Pazhayakayal. It is expected that the projects

will progress as per schedule in 2007-08. 14.5 The Committee notes that the reasons attributed by the Department for the under utilization

of funds for the projects during the year 2006-07 are mainly administrative in nature viz. delay in

finalization of contracts for supply of equipments and materials, delay in getting statutory

clearance from various agencies etc. The Committee is of the opinion that these administrative

problems can be easily resolved through proper planning and coordination with the agencies

involved in supplying equipments or granting clearances for the strategic projects of the

department. The Committee also recommends that the department should ensure strict compliance

of the terms agreed to by the agencies supplying equipments, to avoid procedural delays.

15. ASSISTANCE TO UNIVERSITIES /INSTITUTIONS/ AWARENESS PROGRAMMES

15.1. In reply to a query regarding increase in assistance to Universities/Institutions/Awareness

programmes the Committee was informed about the following detailed break-up of the provision

made under the Head “Assistance to Universities, Research Institutions, Societies and Non-

Government Institutions”: (Rs. in Crore)

SNo Details BE 06-07 RE 06-07 BE 07-08

1 Public Awareness and Neighbourhood Welfare Programmes

1.50 0.17 0.40

2 Exhibitions 2.00 1.75 2.00 3 Fellowships 1.70 2.05 4.20 4 Symposia 2.00 2.00 3.00

5 Board of Research in Nuclear Sciences 34.35 35.00 40.00

6 Miscelleneous R&D Schemes 1.25 2.21 2.50

7 National Board of Higher Mathematics 12.02 11.59 13.00

8 Assistance to Radiation Medicine Centres & Cancer Hospitals

6.00 8.00 24.00

9 External Relations Programmes 0.12 0.17 0.12

10 Prospective Research funding 1.00

Total 60.94 62.94 90.22 15.2 The department also informed that in addition to Assistance to Universities the Grant-in-

aid is being utilized for Public Awareness and Neighbourhood Welfare programmes, Exhibitions,

Fellowships, and Miscellaneous R&D schemes, Assistance to Radiation Medicine Centres and

Cancer Hospitals, External relations programmes etc. The fund provided under National Board of

Higher Mathematics (NBHM) is being utilized towards library grant to Universities; travel grant

to mathematicians from Universities to go abroad for participating in conferences; scholarships to

MSc and PhD students working at Universities; financial assistance for organizing

conferences/workshops etc. in Universities and Research Institutions. In addition the Board of

Research in Nuclear Sciences (BRNS) is an Advisory Committee constituted by the Department

to recommend financial assistance to all the renowned Universities/Research Institutions/ Libraries

etc. both, to encourage and promote scientific research in the areas which are relevant to the

mandate of the Department. There are around 250 projects for financial assistance from the various

Universities/Research Institutions. 15.3 In reply to a query regarding the requirement of increased grants for Universities involved

in the field of Nuclear Science; the Secretary of the Department stated that the training and funding

for the University sector is absolutely crucial. The Department follows two systems for funding

the universities involved in Nuclear Science research. In the first system, it seeks proposals for the

projects from universities and other laboratories, reviews it and based on the model of the project,

it gives sanction for projects. The second system is the proactive system of funding, wherein

instead of the universities coming to the department, the department itself approaches the

university with various proposals for research. The amount involved in such proactive funding is

quite large in proportion. 15.4 The Committee feels that by investing substantially in research in the field of nuclear

science at University level and even at undergraduate level, helps in attracting more students and

developing their interest towards nuclear science. In this direction the Committee commends that

more universities should be brought under the proactive system of funding and efforts should be

made towards inculcating the interest of students in the science stream at higher secondary level

in the field of Atomic Energy. 15.5 The Committee notes that only a miniscule amount of Rs. 0.40 crores and Rs.2.00 crores

has been allocated for Public awareness and Neighbourhood welfare programmes and exhibitions

respectively. The Committee feels that there is an urgent need to develop interest and awareness

of the masses and especially the interest of the new generation towards the subject of Atomic

Energy in general and to dispel the negative impression of the public towards nuclear power. The

Committee is of the opinion that the department should allocate more funds towards mass

awareness programmes in the field of nuclear science. 16. RADIOPHARMACEUTICALS 16.1 The Committee was also informed that the Department through its Nuclear Medicine

Centres such as Bhaba Atomic Research Centre (BARC), Tata Institute of Fundamental

Research(TIFR), Board of Radiation and Isotope Technology (BRIT) etc. is also engaged in the

production in Radiopharmaceuticals viz. Iodine-131, phosphorous-32, Chromium-51 etc. which

are quite useful in the treatment of various diseases.

16.2 About the projects on Radio Pharmaceuticals the Secretary of the Committee informed that

this activity is being pursued both on the research front and in industrial supply front. The basic

research on this is done in basic research institutions i.e. TIFR, BRIT and BARC. The BRIT is

also involved in commercial production and marketing of radiopharmaceuticals. Radio

pharmaceuticals have been divided into two categories—therapeutic or palliative and

diagnostic. There is no shortage in therapeutic field and reactors, like BARC, are able to produce

all the radiopharmaceuticals required to meet the demand. As far as diagnostic radio

pharmaceuticals are concerned, they are of two types. The ones that doctors prefer are the

radiopharmaceuticals, for which we need reactors which are of high-specific activity and which

are being imported. There are another set of radio isotopes which can be made using cyclotrons,

which are not produced in the reactors and soon that type of isotope will be produced at Kolkata. 16.3 The Committee feels that diagnostic radiopharmaceuticals are an important constituent of

the various diagnostic tools used for the detection of life threatening diseases like cancer,

thaleseemia, tumors etc. and therefore desires that efforts should be made by the Department to

produce the second variety of radiopharmaceuticals in the country itself, which would decrease

our dependence on imports.

17. INDO-UNITED STATES JOINT CIVILIAN NUCLEAR ENERGY AGGREMENT 17.1 The Committee was informed that discussions are on with the United States of America

for opening up of international cooperation and trade with India in uranium and civilian nuclear

power. The first dialogue in this regard took place in the first half of 2005 and understandings

reached have been included as part of joint statement issued on 18 July 2005 during the visit of

Prime Minister Dr. Manmohan Singh to Washington. The discussions have continued and a

separation plan; according to which India is required to separate its civilian and nuclear facilities;

was finalized in March 2006 and was elaborated and placed on the floor of the Parliament on May

11, 2006..

17.2 The Committee was further informed that Parameters for further negotiations have been

clearly spelt out by the Prime Minister in his reply to discussions in the Rajya Sabha on Civil

Nuclear Energy Cooperation with the US on 17 August 2006. The Agreement for bilateral

cooperation has not yet been concluded and is still under negotiations. To ensure that fuel supply

is made available to India on a regular basis, adequate provisions have been made in the separation

plan referred to earlier.

17.3 The Committee was also informed that India has modest reserves of uranium and vast

reserves of thorium and that the resolve to provide long-term energy security hinges on effective

use of this modest quantity of uranium leading to maximum energy potential through fuller use of

uranium and thorium. This is the prime objective of the three-stage programme being pursued by

the Department of Atomic Energy, which is designed to derive maximum benefit from the nuclear

fuel resources available within the country. The three stages, however, need to be implemented

sequentially with each stage involving its own technology development effort both for the nuclear

reactor as well as for the associated fuel cycle. The country has now reached a level of maturity in

terms of the first stage that is Pressurized Heavy Water Reactor (PHWR) technology. PHWRs

being set up by the Nuclear Power Corporation of India Ltd. are based on state of art technology

and are operating at high availability factors. Construction period of these reactors is comparable

with the best in the world. 17.4 The Committee was also informed that the Department has launched construction of 500

MWe Prototype Fast Breeder Reactor after completing the necessary Research & Development

work. However, there is a need to sustain work across the complete Research-Development-

Demonstration and Deployment [RD3] chain in respect of technologies for 2nd and 3rd stages. This

development programme in many ways would be unique to India with no parallel elsewhere and

therefore, ability to carry out all developmental programmes leading up to commercially robust

technology in an autonomous manner must be maintained. Since the evolution of each stage is

dependent on the fissile material availability from the previous state, we need to ensure that

adequate fissile material is available to take the technology development through the RD3 chain. 17.5 The Department also informed that India now has the possibility of opening up of

international cooperation and trade in India in uranium and civilian nuclear power, which is a

welcome development and can provide additionalities to our indigenous programme. As a matter

of fact, the programme of 20,000 MWe nuclear power by the year 2020 envisaged by the DAE in

1995 did include 8,000 MWe capacity to be established through imported Light Water Reactors

(LWRs/VVERs). Two reactors of 1000 MWe each are under construction at Kudankulam in

technical cooperation with Russian Federation and we have signed a Memorandum of Intent with

Russian Federation to construct 4 more reactors at the same site. Considering large electricity

demand, we can set up many more reactors in cooperation with other countries. While such

additionalities could enable a more rapid nuclear power capacity addition in the short run, long

term growth would come only by pursuing a closed cycle approach involving reprocessing of spent

fuel including that of foreign origin and use of recovered plutonium in fast breeder reactors. 17.6 In fact, pursuit of closed fuel cycle is a matter of policy for us as the policy ensures fuel

resource sustainability and also provides for credible waste management by reducing waste

volumes. With regard to international cooperation we are moving forward in a positive manner

and in view of our stated policy, which was articulated by the Prime Minister in Parliament as

well, we need to have explicit provision enabling reprocessing in all bilateral cooperation

agreements which India might enter into in future. 17.7 The Committee feels that with the fast depleting conventional sources of energy, the

agreement with the United States would result in a quantum jump in our nuclear energy generating

capacity and would provide the much needed energy security to the country which is essential for

the country’s growth. The Committee desires that the cooperation in nuclear research activities

should also increase and India should be able to join the international mainstream and occupy its

rightful place among the top countries in the nuclear community. The Committee also desires that

the Department should ensure that in future, the Country is able to pursue it nuclear energy

activities, whether civilian or military, as per it own national interests.

18. After considering the Demands for Grants of the Department of Atomic Energy and

assessing the progress of various important programmes and projects administered by it, the

Committee recommends that the budgetary allocation of Rs.3796.85 Crores under Demand No.5

(Atomic Energy) and Rs.2333.15 Crores under Demand No. 6 (Nuclear Power Schemes) as sought

by the Department for the year 2007-08 may be approved.

******* Summary of Recommendation

1. The Committee observes that the Department has informed the Committee regarding a

similar reduction of Rs. 312.89 crores in the non-plan allocation under demand no. 5, during the

Demands for Grants for the year 2006-07, and the Department had raised its concerns on the

operational needs of the Heavy Water Plants, Nuclear Fuel Complex, Board of Radiation and

Isotope Technology, Fuel Reprocessing Plants of the BARC. The Committee had accordingly

recommended in its 160th Report (recommendation no.15) that any curtailment of funds in a crucial

sector like Atomic Energy could delay the endeavour of the Department to increase the

contribution of nuclear power in the total power production and in other important areas of

the country. (Para 11.2) 2. The Committee expresses its serious concern at the fact that the issue has not been resolved

and has arisen again and there has been reduction of Rs. 443.88 crores in the non-plan allocation

under demand no. 5 for year 2007-08; which is even more than the earlier reduction of Rs. 312.89

crores during the year 2006-07. (Para 11.3)

3. The Committee strongly feels that any curtailment of funds for operational and maintenance

reasons and any institute especially like BARC, which is involved in high-end and innovative

research areas, slows down the pace of sustained growth attained over the years in the field of

atomic energy. The Committee therefore strongly recommends that the Department should take

up the issue of persistent reduction in the non-plan allocation (Demand No. 5) with the

Ministry of Finance expeditiously and impress upon them the urgent need for increased allocation

to enable the Department to maintain the progress in field of nuclear

energy. (Para 11.4) 4. The Committee commends the fact that Kaiga-3 has attained criticality in February, 2007, which is

one month ahead of the actual/anticipated date of completion i.e. March, 2007. The Committee also

commends the Department for the progress made on the construction of the remaining five nuclear power

units which are progressing as per schedule. The Committee is of the opinion that in view of the severe

shortage of power being faced by the country presently, nuclear energy is fast appearing to be an inevitable

answer to sustain the power requirements of the country. The Committee therefore desires that the pace of

construction should be maintained for the ongoing power projects and in future efforts should be made to

complete the planned projects within the targeted dates. (Para 12.3) 5. The Committee desires that the existing reviewing mechanisms developed by the

Department to monitor and review the progress of the ongoing schemes/projects before

formulating/finalizing proposals for budgetary support should be strengthened to eliminate the

scope of shortage or surrender of funds at a later

stage. (Para 13.3) 6. The Committee notes that the reasons attributed by the Department for the under utilization

of funds for the projects during the year 2006-07 are mainly administrative in nature viz. delay in

finalization of contracts for supply of equipments and materials, delay in getting statutory

clearance from various agencies etc. The Committee is of the opinion that these administrative

problems can be easily resolved through proper planning and coordination with the agencies

involved in supplying equipments or granting clearances for the strategic projects of the

department. The Committee also recommends that the department should ensure strict compliance

of the terms agreed to by the agencies supplying equipments, to avoid procedural

delays. (Para 14.5) 7. The Committee feels that by investing substantially in research in the field of nuclear

science at University level and even at undergraduate level, helps in attracting more students and

developing their interest towards nuclear science. In this direction the Committee commends that

more universities should be brought under the proactive system of funding and efforts should be

made towards inculcating the interest of students in the science stream at higher secondary level

in the field of Atomic Energy. (Para 15.4) 8. The Committee notes that only a miniscule amount of Rs. 0.40 crores and Rs.2.00 crores

has been allocated for Public awareness and Neighbourhood welfare programmes and exhibitions

respectively. The Committee feels that there is an urgent need to develop interest and awareness

of the masses and especially the interest of the new generationtowards the subject of Atomic

Energy in general and to dispel the negative impression of the public towards nuclear power. The

Committee is of the opinion that the department should allocate more funds towards mass

awareness programmes in the field of nuclear science. (Para 15.5) 9. The Committee feels that diagnostic radiopharmaceuticals are an important constituent of

the various diagnostic tools used for the detection of life threatening diseases like cancer,

thaleseemia, tumors etc. and therefore desires that efforts should be made by the Department to

produce the second variety of radiopharmaceuticals in the country itself, which would decrease

our dependence on imports. (Para

16.3) 10. The Committee feels that with the fast depleting conventional sources of energy, the

agreement with the United States would result in a quantum jump in our nuclear energy generating

capacity and would provide the much needed energy security to the country which is essential for

the country’s growth. The Committee desires that the cooperation in nuclear research activities

should also increase and India should be able to join the international mainstream and occupy its

rightful place among the top countries in the nuclear community. The Committee also desires that

the Department should ensure that in future, the Country is able to pursue it nuclear energy

activities, whether civilian or military, as per it own national

interests. (Para 17.7) 11. After considering the Demands for Grants of the Department of Atomic Energy and

assessing the progress of various important programmes and projects administered by it, the

Committee recommends that the budgetary allocation of Rs.3796.85 Crores under Demand No.5

(Atomic Energy) and Rs.2333.15 Crores under Demand No. 6 (Nuclear Power Schemes) as sought

by the Department for the year 2007-08 may be

approved. (Para 18)

*******

MINUTES

XI ELEVENTH MEETING

The Committee met at 11.00 a.m. on Monday, the 2nd April, 2007 in Room No. 139, First

Floor, Parliament House Annexe, New Delhi.

PRESENT

1. Shri P.G.Narayanan –– Chairman

RAJYA SABHA

2. Dr. Prabha Thakur 3. Shri Suryakantbhai Acharya 4. Shri Bhagirathi Majhi 5. Shri Saman Pathak 6. Shri Jabir Husain 7. Dr. Barun Mukherjee

LOK SABHA 8. Dr. Sujan Chakraborty 9. Shri Thupstan Chhewang 10. Shri Francis Fanthome 11. Shri Babubhai K. Katara 12. Smt. Neeta Pateriya 13. Shri Bachi Singh ‘Bachda’ Rawat 14. Shri K.C. Singh “Baba” 15. Smt. Jayaben B. thakkar 16. Shri Sita Ram Yadav

SECRETARIAT Shri R.K.Singh, Officer on Special Duty Shri Alok Chatterjee, Deputy Secretary

Representatives of the Department of Atomic Energy

1. Dr. Anil Kakodkar, Secretary, DAE 2. Shri R.C. Joshi, Special Secretary, DAE 3. Dr. R.B. Grover, Director, SPG, DAE 4. Shri V.P. Raja, Additional Secretary (I&M), DAE 5. Dr. C.V. Ananda Bose, JS, DAE 6. Shri S. Mendiratta, Joint Secretary, DAE 7. Shri S.K. Jana, Chief Controller of Accounts, DAE 8. Shri S.K. Sharma, Chairman, Atomic Energy Regulatory Board 9. Shri S.K. Jain, CMD, Nuclear Power Corporation of India Ltd. 10. Shri A.K. Kohlki, Chief Executive, BRIT 11. Shri Arun Kumar, GM, UCIL 12. Shri S. Thakur, Executive Director, Nuclear Power Corp. of India Ltd. 13. Dr. S. Banerjee, Director, BARC 14. Shri Ramendra Gupta, CMD, Uranium Corporation of India Ltd. 15. Dr. Bikash Sinha, Director, Variable Energy Cyclotron Centre 16. Prof. Abhijeet Sen, Institute of Plasma Research 17. Smt. Uma Sheshadri, Sr. Scientist, IGCAR

* * *

2. The Chairman welcomed the Secretary and other officials of the Department of

Atomic Energy and requested the Secretary to make a presentation on Demands for

Grants (2007-08) of the Department. Thereafter, the Secretary made a visual presentation

regarding the major activities formulated for the year 2007-08 and achievements of the

Department during the year 2006-07. He also mentioned about the budgetary allocations

under different heads as also the functioning of the Department. Thereafter, Members

sought clarifications on the points that emerged out of the presentation. The Secretary

replied to them.

The officials then withdrew.

3. * * *

4. * * *

5. * * *

A verbatim record of the proceedings was kept.

5. The Committee then adjourned at 05.40 p.m. to meet again at 11.00 a.m. on Tuesday,

the 3rd April, 2007.

________________________________________________________________________*** Relates to other matters.

XIV FOURTEENTH MEETING

The Committee met at 11.00 a.m. on Friday, the 20th April, 2007 in Room No. ‘63’, First

Floor, Parliament House, New Delhi. PRESENT

1. Shri P.G. Narayanan ----- Chairman RAJYA SABHA

2. Shri Kamal Akhtar 3. Shri Jabir Husain 4. Dr. Barun Mukherjee

LOK SABHA

5. Dr. Sujan Chakraborty 6. Shri Thupstan Chhewang 7. Shri Francis Fanthome 8. Shri Brahmananda Panda 9. Shri Pratik Prakashbapu Patil 10. Shri Bachi Singh ‘Bachda’ Rawat 11. Shri Aruna Kumar Vundavalli 12. Shri Mitrasen Yadav

SECRETARIAT Shri R.K. Singh, Officer on Special Duty Shri Alok Chatterjee, Deputy Secretary Shri S. Rangarajan, Committee Officer

2. The Committee took-up for consideration its draft ***, ***, ***, ***, ***, ***; and 176th

Reports on the Demands for Grants (2007-2008) pertaining to the ***; ***; ***; ***; ***;

Departments of Atomic Energy and *** respectively. The Committee adopted all the

reports with some minor changes.

3. * * *

4. The Committee also decided to present all the seven reports (170th to 176th) on 26th

April, 2007 in both the Houses of Parliament. The Committee authorized its Chairman

and in his absence Dr. Barun Mukherjee to present the reports in Rajya Sabha and to lay

the copies of the reports on the table of Lok Sabha by Dr. Sujan Chakraborty and in his

absence by Shri Thupstan Chhewang. 5. * * *

6. The Committee then adjourned at 12.05 p.m.

________________________________________________________________________*** Relates to other matters.

# Smt.Viplove Thakur ceased to be a Member of the Committee w.e.f. 30th November, 2006 * Shri Rampal Singh Nominated to the Committee w.e.f. 8th December, 2006.