top of page

By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its...

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its worth not only during festivals, but also during uncertain times. Whenever the world faces wars, inflation, currency weakness, economic slowdown, or financial panic, investors across the globe look at gold as a safe haven. This is because gold has a unique quality. It is trusted across countries, cultures, and generations. It does not depend on the promise of one government, one company, or one currency. Why Gold Holds Value Unlike paper currency, gold cannot be printed endlessly. Unlike businesses, it does not depend on profits or management quality. Unlike real estate, it is globally accepted and easily valued. This is why gold continues to remain one of the oldest and most respected stores of value. It has survived centuries of change, economic cycles, wars, and financial crises. The Right Role in Your Portfolio That said, gold should not be treated as a shortcut to wealth creation. Equities and equity mutual funds still remain essential for long-term growth. Gold plays a different role. It brings balance, stability, and protection to your portfolio. When equity markets are volatile or global uncertainty rises, gold often provides comfort. A sensible allocation of around 10-20% to gold can help reduce overall portfolio risk.  So basically, while stocks and equity mutual funds play the lead role in your long-term financial goals, gold plays the supporting but essential role. Physical Gold Has Limitations However, the way you invest in gold matters. Buying physical gold during festivals may feel emotionally satisfying, but it comes with practical challenges. There are making charges, purity concerns, storage issues, risk of theft, and liquidity problems. A necklace may be beautiful, but you cannot easily sell only a small portion of it when you need money. Also, when gold is bought as jewellery, the investor often forgets to calculate the actual return after making charges and deductions. Smarter Ways to Invest This is where Gold Mutual Funds and Gold ETFs become useful. They allow you to invest in gold without worrying about lockers, purity, theft, or storage. You can invest flexible amounts, start SIPs, track value easily, and redeem conveniently when required. For investors who want gold as part of their financial plan, these options are far more practical than buying jewellery purely as an investment. Tradition with Financial Clarity Akshay Tritiya is a beautiful reminder that wealth should be built with faith, patience, and clarity. Buying gold is auspicious, but buying it in the right form is financially wise. This Akshay Tritiya, celebrate tradition - but also upgrade your financial thinking. Because true prosperity is not just about owning gold. It is about owning it smartly. (The writer is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

India’s Proud Moment at Kalpakkam

With the PFBR’s first criticality, India’s three-stage nuclear vision moves from doctrine to deployment, reshaping its geopolitical calculus.

The successful first criticality of India’s 500 MWe Prototype Fast Breeder Reactor (PFBR) at Kalpakkam is much more than a technical milestone; it is a decisive step in India’s three stage nuclear programme. This indigenous, sodium cooled fast breeder reactor bridges the gap between our current uranium based nuclear fleet and the long-term vision of a thorium fuelled future. In an era of climate urgency and geopolitical flux, PFBR driven nuclear expansion offers India a powerful combination of socio-economic benefits, strategic positioning, and a credible pathway to achieving its 2070 net zero emissions target.


Socio-economic Gains

The three-stage nuclear programme - natural uranium PHWRs in stage one, fast breeders such as PFBR in stage two, and thorium-based reactors in stage three - can deliver substantial socio-economic gains. Nuclear power provides firm, baseload electricity that complements intermittent renewables such as solar and wind, thereby stabilising grids and reducing load shedding, especially in industrial hubs and megacities. For a growing economy with rising per capita energy demand, this is essential to sustaining manufacturing competitiveness, digital growth and urban infrastructure.


By mastering the entire fuel cycle from uranium mining and reactor design to fuel fabrication, reprocessing and thorium utilisation, India is building a domestic high tech industrial ecosystem. The PFBR project alone has involved thousands of engineers, scientists, technicians and domestic manufacturers, creating high value jobs in precision engineering, materials science, nuclear safety and advanced control systems. Once the programme scales up, it will also stimulate regional development around nuclear sites, including in states such as Tamil Nadu, Rajasthan, Uttar Pradesh and Maharashtra, through education, skilling and ancillary industries.


Strategic Positioning

India’s three stage nuclear plan, anchored by PFBR class reactors, also strengthens its strategic positioning in a global energy order increasingly shaped by competition with China and Russia. Both countries use nuclear exports as instruments of foreign policy, offering reactor deals with attractive financing and long term fuel contracts. India’s mastery of indigenous fast breeder technology and closed fuel cycle systems gives it a differentiated niche: instead of merely buying foreign reactors, India can gradually offer its own designs, safety frameworks and fuel cycle services to friendly nations, especially in the Global South.


However, India’s full potential is constrained by its non-signatory status to the Nuclear Non-Proliferation Treaty (NPT) and its ongoing bid for membership of the Nuclear Suppliers Group (NSG). NSG membership would normalise civil nuclear trade, reduce technology transfer barriers and allow India to participate in global nuclear technology rule making on an equal footing. PFBR success underscores that India already operates to high safety standards and can manage sensitive materials responsibly, which should bolster its case for early NSG entry and deeper integration into global nuclear governance structures.


China and Russia are aggressively expanding their nuclear footprints, both domestically and in third country markets. China is building large fleets of pressurised water reactors and investing in advanced designs such as high temperature gas cooled and small modular reactors. Russia is exporting VVER type reactors and financing nuclear projects in Asia, the Middle East and Africa as part of its geopolitical outreach.


India’s three stage programme, with PFBR at its core, offers a counter narrative: a democratically governed, non-proliferation compliant country that can provide safe, secure, and scalable nuclear energy without power projection strings. In the Indo Pacific region, where energy security and maritime stability are closely linked, an Indian led nuclear technology ecosystem can complement strategic partnerships with countries such as Japan, South Korea, Australia and select Southeast Asian nations. Over time, India could position itself as a credible alternative or partner in the supply of nuclear generated heat and power, especially in small modular and fast breeder formats suited to diffused grids.


Safety in liquid sodium, reprocessing of Zirconium jacket, and Th 232/U 233 radiation


One of the most frequent concerns around PFBR and similar reactors is the use of liquid sodium as a coolant. Sodium offers excellent heat transfer properties and high temperature operation, but it reacts vigorously with water and air if exposed.


India’s PFBR design addresses this through a “pool type” configuration, where the core and primary pumps are submerged in a single large sodium pool, providing high thermal inertia and passive heat removal capability. Multiple safety systems, including diverse shutdown mechanisms, robust containment and rigorous leak detection protocols, ensure that even in postulated accident scenarios, radioactive release remains well within safe limits. These features place PFBR among the safer classes of advanced reactors, despite the inherent challenges of sodium chemistry.


Another important aspect is the reprocessing of spent fuel, including the Zirconium alloy fuel clad (jacket). Zirconium alloys are used in fuel rods because they are relatively transparent to neutrons and resistant to corrosion. After irradiation, these clads are separated during reprocessing and can be recycled or disposed of in conditioned forms, depending on regulatory and material recovery strategies. The Indian nuclear programme is consciously moving towards closed fuel cycle systems, in which plutonium and uranium are recovered for reuse, minimising long lived waste and enhancing resource efficiency.


With thorium-based reactors in the third stage, the focus shifts to Th 232 and its daughter product, uranium 233 (U 233). Thorium 232 is not fissile but fertile; it absorbs neutrons and transmutes into U 233, which is fissile and can sustain a chain reaction.


While U 233 is highly radioactive and requires careful handling, its use also offers advantages: it can be configured to produce less long-lived actinide waste compared with conventional uranium plutonium cycles. Indian research centres are already developing advanced thorium fuel cycle technologies and safeguards compatible designs that balance proliferation resistance with energy output.


India’s Vision

India has committed to achieving net zero carbon emissions by 2070, a target that is ambitious but achievable only if the country deploys a diversified mix of low carbon technologies. Solar and wind will form the backbone of India’s renewable transition, but they require backup, storage and grid stabilisation solutions. Nuclear power, especially once the three-stage programme is fully realised, can provide the stable, high-capacity factor baseload that complements variable renewables. Fast breeder reactors such as PFBR, and in the longer-term thorium based systems, will help stretch India’s domestic fuel resources and reduce the need for imported fossil fuels, thereby cutting both emissions and import dependence.


More importantly, nuclear power emits virtually no greenhouse gases during operation, making it a key ingredient in India’s climate resilient growth strategy. By investing in indigenously developed nuclear technologies, India is not only building a secure energy future but also signalling its readiness to shoulder global climate responsibilities without compromising development.


PFBR’s first criticality is a proof point that India can shape its own nuclear destiny. The three-stage programme, once scaled, can deliver broad socio-economic benefits, strengthen India’s strategic autonomy, and open doors for civil nuclear leadership in the Indo Pacific. Engaging constructively with the NSG, managing the safety and proliferation dimensions of liquid sodium reactors and thorium fuel cycles, and continuing to invest in indigenous research will be essential to realising this vision.


As India moves toward its 2070 net zero goal, a growing share of electricity from advanced nuclear systems, rooted in PFBR and its successors, will be indispensable. It is time to see nuclear not as a fringe technology, but as a core pillar of India’s energy, security and climate action strategy in the 21st century.

(The writer is a former Department of Atomic Energy scientific officer. Views personal.)

Comments


bottom of page