EXPLORING STRATEGIC PERSPECTIVES OF NUCLEAR POWER MANAGEMENT IN INDIA

Abstract

The Nuclear Power Industry in India has recently witnessed a significant push as part of India‘s long term energy transition strategy. Nuclear Power is the world‘s second-largest source of low-emissions electricity. This study aims to provide a comprehensive strategic analysis of the Indian Nuclear Power Sector. The research evaluates the historical achievements, current status, competitive positioning and identifying critical factors for shaping the competitive advantage of industry. The research has been carried out by application of Michael Porter‘s Diamond Theory of National Advantage. Analysis work is carried out where the Diamond components (Demand Conditions, Factor Conditions, Related and Supporting Industries, Firm Structure, Strategy and Rivalry, Role of Government and Chance) are identified and working of the Diamond is analysed. The study identifies the components of Porter‘s Diamond model, Firm Structure, Strategy, and Rivalry are not present; Related and Supporting Industries and the Role of Government are weakly present; while Demand Conditions, Factor Conditions, and Chance are adequately present. The analysis further concludes that due to these gaps, the Diamond model does not function effectively in India‘s Nuclear Power Industry. The findings indicate that India‘s Nuclear Power Industry derives its competitiveness primarily from favourable Factor conditions, such as the availability of skilled human resources, as well as positive Demand conditions and Chance events like the clean energy transition and the emergence of small modular reactors. However, the industry continues to face significant challenges due to the absence of Domestic Competition, the lack of benefits from competitive Supporting Industries, and an inadequate and fragmented role of the Government. In summary, the analysis suggests that Porter‘s Diamond framework is partly functioning for India‘s Nuclear Power Sector, resulting in only a limited competitive advantage under the current circumstances. Recently Government of India has taken some key initiatives to support the Indian Nuclear Power sector. These includes considering amendments to Atomic Energy Act to open Sector to Private and Foreign Players, Limiting the Liability in case of Damage to suppliers, Setting aggressive target of 100 GW Nuclear Power by 2047, Technology Transfer, R&D Funds for Small Modular Reactors. Based on the Analysis of this study, steps taken by the Government are in the right direction and will help to improve the competitiveness of Nuclear Power Industry in upcoming years.