The Eightfold Path to Nuclear Fuel Supply Security
Nitin Pai and Pranay Kotasthane, The Takshashila Institution
This document presents eight principles to help India secure its nuclear energy infrastructure. The eightfold path outlined below will allow India to exploit the nuclear option to achieve its goal of energy security.
- Invest in diversity across the board
Be agnostic to any source of affordable energy in the short term.
- Trade with suppliers, buy from trading partners
Diversify trade relations with existing suppliers and/or substitute them with countries that already have significant trade relations with India.
- Purchase preferably from competitive markets
Manage political risks by purchasing fuel supplies in all processing stages, from markets which have multiple players.
- Make markets more competitive if they are not
Work with cartels like Nuclear Suppliers Group (NSG) if the opportunity costs are manageable. If not, dismantle them.
- Fuel is fungible, so use it wisely
Use price sensitivity as a purchasing principle.
- Share the risks between plant communities and user communities
Price and distribute the risks of plant communities.
- Secure supply routes
Factor in the sea/land route availability and safety.
- Invest in domestic industry
Hedge against the prospect of trade restrictions or transport disruptions affecting its supply security by investing in a domestic industry.
This policy brief can be cited as: Nitin Pai & Pranay Kotasthane, “The Eightfold Path to Nuclear Fuel Supply Security”, Takshashila Discussion Document, 2015-S01. (2015) www.takshashila.org.in/1534524506254.