NEW DELHI // As India's newest nuclear plant gets ready to start generating power within two weeks, there have been suggestions that the government should have involved residents in the planning to avoid the growing violent protests.
The opposition to the Kudankulam plant, in the southern state of Tamil Nadu, gained momentum last year after the earthquake and tsunami that caused the meltdown at Japan's Fukushima Daiichi nuclear facility.
Tamil Nadu was hit hard by a tsunami in 2004 and the protesters fear the plant, which sits on the coast of the Bay of Bengal, is vulnerable to natural disasters.
Last week, state officials said Indian police had fired on about 2,000 protesters near the Kudankulam plant, killing one person. They said protesters had thrown stones and sticks at police and five officers were injured.
On Thursday, hundreds of activists, mostly women and children from nearby fishing villages, formed a human chain as they waded into the sea near the plant. Children formed human pyramids and raised a black flag in protest. Women clung to ropes from the beach, as they braved the waves.
"What is missing is that the government has not been open to dialogue. There is a long-standing history of protest but the government has been ignoring what the people have to say," said MV Ramana, a physicist who works at the Nuclear Futures Laboratory and the science and global security programme at Princeton University in the US.
An estimated one million people live within a 30-kilometre radius of the plant. This is the "same kind of radius as Fukushima", said Mr Ramana. "This means if there were to be a natural disaster, evacuation would be an issue."
Some of the issues that have not been discussed with residents, he added, include the land and water needed for the plant, which could affect farmers by redirecting water meant for irrigation, as well as the effect of the hot water discharged from the reactor on marine life and the livelihood of fishermen.
There are also fears of contamination of groundwater and soil.
Plans to begin generating power remained on track after India's supreme court rejected a petition on Friday by protesters to stop fuel being loaded into one of the two Russian-made reactors. But it said it would look into safety concerns raised by the protesters.
The plant will provide two gigawatts of electricity, enough to relieve a countrywide power crisis.
India currently generates 2.25 gigawatts of power but there is a need for twice as much, said Harry Dhaul, the director general of the Independent Power Producers Association of India, a non-governmental organisation that lobbies to improve the power sector.
Last month, India suffered the worst blackouts in history, leaving more than 600 million people without power. "The nuclear power plant in Kundankulam is extremely important because there is a huge gap in the demand and supply of power in India. What the nuclear plant will generate, that is a cheap option," said Mr Dhaul.
The plant will initially provide an estimated 1,000 megawatts of electricity to Tamil Nadu. The rest of the generated power will be shared by other south Indian states, including Andhra Pradesh.
Tamil Nadu already has prolonged power cuts and the price of electricity is among the highest in the country. In Andhra Pradesh, three days each week is declared a "power holiday", where industries shut down due to lack of electricity.
"This plant is a strong case of investing in the power sector," said Mr Dhaul, dismissing detractors who said a nuclear power plant will generate electricity for businesses, ignoring farming and fisheries. "Electricity is not for industrial use only. Everyone will draw from it."
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
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Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
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Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
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Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
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