The Atomic Energy Amendment Act, 2015

The Atomic Energy (Amendment) Bill, 2015 was introduced in Lok Sabha on December 7, 2015.  The Bill was introduced by the Minister of State in the Department of Atomic Energy, Mr. Jitendra Singh.  The Bill proposes to amend the Atomic Energy Act, 1962.  It proposes to amend Section 2(bb) - definition of Government Company and Section 14 of 1962 Act relating to licence provisions. The Act empowers the central government to produce, develop, control, and use atomic energy.

Under the Act, a government company is one in which at least 51% of the paid-up share capital is held by the central government.  Paid-up share capital is the capital received by a company from the issue of shares.  The Amendment expands this definition to include companies where the whole of the paid up share capital is held by one or more government company and whose articles of association empower the central government to constitute its Board of Directors.  This provision will allow for the formation of joint ventures between Nuclear Power Corporation of India Limited and other government companies. 

(Note: At present, only two Public Sector Undertakings (PSUs), namely, Nuclear Power Corporation of India Limited (NPCIL) and Bhartiya Nabhikiya Vidyut Nigam Limited (BHAVINI), which are under the administrative control of Department of Atomic Energy, are operating nuclear power plants in the country. Formation of Joint Venture companies by NPCIL with other PSUs of India for civil nuclear power projects is under consideration to meet the additional funding requirements for expanding nuclear power programme and augmenting the nuclear power generation capacity of India. The expression “Government company” has been defined in the Act to mean a company in which not less than fifty-one per cent. of the paid-up share capital is held by the Central Government. The Act thus precludes a Government company from entering into Joint Ventures with other PSUs for the above said purposes for the reason that any Joint Venture company formed by two PSUs may not be subject to the control of the Central Government as a shareholder)

Under the Act, a license is required for acquisition, production, use, export and import of any plant designed for the production and development of atomic energy or research.  The Bill makes consequential amendments to state that such license will only be granted to entities such as a government company or a department of central government.

The amended Act states that any license granted for matters such as: (i) producing atomic energy, and (ii) acquiring and using substances or minerals from which atomic energy can be obtained, will be cancelled if a licensee ceases to be a government company.