Daily News Analysis

India’s Civil Nuclear Law Reform:

stylish_lining

 

India is revising its civil nuclear laws—the Atomic Energy Act (AEA), 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010—to:

  • Attract private and foreign investment

    Accelerate clean energy deployment

    Advance technological innovation (especially Small Modular Reactors, or SMRs)

    Strengthen energy security and meet net-zero goals by 2070

Current Legal Bottlenecks

1. Atomic Energy Act, 1962

  • Centralizes all nuclear operations under the government, excluding private and foreign players

    Prohibits private reactor ownership and export of nuclear material/technology

    Limits collaborative R&D and access to modern reactor designs

2. CLNDA, 2010

  • Section 17(b) allows operators to sue suppliers for nuclear accidents

    International firms see it as an open-ended liability risk

    Discourages foreign partnerships, technology imports, and insurance backing

Proposed Reforms

1.Revising the Civil Liability for Nuclear Damage Act (2010)

  • Limiting Supplier Liability: Under draft amendments, Section 17(b) will be restructured to cap supplier liability to the contract value, with clear time limits—bringing it in line with global standards and reducing open-ended risk

    Clarifying 'Supplier' Definition: The definition will be narrowed to protect smaller equipment makers from blanket liability unless explicitly mentioned in contracts

    Goal: Attract U.S., French, and Japanese firms like GE-Hitachi and Westinghouse that are currently staying away due to unfettered legal exposure

2. Amending the Atomic Energy Act (1962)

  • Opening the Market: Private Indian firms—and in future likely foreign firms—will be allowed to build, own, and operate nuclear plants, ending the exclusive state monopoly

    Foreign Equity: The potential for minority foreign stakes (up to ~49%) is being explored, enabling firms like Westinghouse, EDF, and Rosatom to participate .

3. Policy Support

  • 20,000 crore allocated in Union Budget 2025

    Launch of “Nuclear Energy Mission for Viksit Bharat”

    Focus on innovation, coordination, and SMR development

Why This Matters

  1. Unlocking Investment & Technology

    • Caps and clarity in liability laws will revive stalled deals (e.g., EDF’s Jaitapur, Westinghouse’s Kovvada) and attract global nuclear tech leaders

  2. Boosting Nuclear Capacity

    • These reforms support India’s ambition to grow from ~8 GW today to 100 GW by 2047, realizing its clean energy goals

  3. SMRs & R&D Momentum

    • The budget includes ₹20,000 crore for Small Modular Reactors, targeting 5 indigenous units by 2033, with U.S. firms already cleared for tech transfers (e.g., Holtec)

  4. Trade & Strategic Leverage

    • Aligning with the Convention on Supplementary Compensation and incorporating U.S., French, and Japanese partners is seen as a keystone in wider trade negotiations

Why Suppliers Are Worried

  1. Unlimited Exposure
    Unlike international norms that limit liability to the plant operator, India’s Section 17(b) permits recourse even for latent defects or “sub-standard services”
    Foreign vendors like
    Westinghouse (U.S.) and Framatome (France) have repeatedly flagged this clause as a deal-breaker due to its unbounded liability

  2. Broad Definition of “Supplier”
    India’s CLNDA doesn’t distinguish between major contractors and small sub-vendors This means even minor equipment suppliers, such as Indian manufacturers, could be held liable—creating widespread industry apprehension

  3. Legal Ambiguity with Section 46
    This section allows additional civil claims under tort law beyond the CLNDA framework. Suppliers thus face potential unlimited civil liability, even if operators’ liability is capped

Dangers and Criticism in India’s Civil Nuclear Reforms

1. Dispersing Accountability — Weakening Supplier Liability

  • The proposed loosening of Section 17(b) in the Civil Liability for Nuclear Damage Act (CLNDA) aims to limit vendor liability for nuclear damage.

    Critics, including civil society and watchdogs, fear this might lead to:

    • Reduced responsibility for equipment suppliers, especially foreign firms.

    • Potential risk to communities if defective parts or malpractices cause nuclear accidents.

    • Historical precedents like Fukushima remind the world of catastrophic fallout when accountability is unclear.

    The trade-off here is between investor comfort and public safety—a delicate balance that critics feel might tilt too far towards protecting businesses at the expense of citizens.

2. Democratic Oversight and Transparency Deficits

  • Unlike major infrastructure projects, the nuclear amendments have lacked wide public consultation.

    Key stakeholders—affected communities, scientific experts, and environmental groups—argue for:

    • A more transparent parliamentary process.

    • Inclusion of civil society in debates and decision-making.

    • Comprehensive scientific risk assessments shared publicly.

    Without such openness, reforms risk eroding public trust and invite skepticism about whether economic convenience is prioritized over safety.

India’s Need to Increase Its Nuclear Capacity

Current and Future Capacity Goals:

  • India aims to raise its nuclear power capacity from the present 8,180 MW to 22,480 MW by 2031-32, and ultimately reach 100 GW by 2047.

Rising Energy Demand:

  • With India’s electricity demand projected to grow 4 to 5 times by 2047, nuclear energy is critical to meeting the base-load power demand alongside renewable sources like solar and wind.

Climate and Energy Targets:

  • India is committed to reducing its GDP emission intensity by 44% by 2030 (compared to 2005 levels).

    It targets 50% of its installed power capacity to come from non-fossil fuel sources by 2030, including nuclear energy.

India’s Three-Stage Nuclear Program

1st Stage: Pressurized Heavy Water Reactors (PHWRs)

  • Use natural uranium (U-238) fuel with heavy water (deuterium oxide) as coolant and moderator.

    Currently operated by NPCIL, with 22 commercial reactors totaling 6,780 MWe capacity.

2nd Stage: Fast Breeder Reactors (FBRs)

  • Use Uranium-Plutonium Mixed Oxide (MOX) fuel.

    Breed plutonium (Pu-239) from Uranium-238 and transmute Thorium-232 to fissile Uranium-233 for 3rd stage fuel.

    India’s Prototype Fast Breeder Reactor (PFBR) under BHAVINI is a flagship project; India will be the 2nd country after Russia with a commercial FBR.

    Benefits include better fuel utilization, reduced nuclear waste, and passive safety features with cost competitiveness.

3rd Stage: Thorium-Based Reactors

  • Focus on utilizing abundant Indian Thorium reserves via Advanced Heavy Water Reactors (AHWR) using Uranium-233.

    Integral to India’s long-term energy sustainability and carbon reduction goals.

Legislative and Regulatory Framework

Atomic Energy Act (AEA), 1962

  • Grants exclusive central government authority to produce and regulate atomic energy.

    Controls the sector via Department of Atomic Energy (DAE) and NPCIL, restricting private participation.

Civil Liability for Nuclear Damage Act (CLNDA), 2010

  • Establishes a no-fault liability regime where nuclear operators are primarily liable, capped at ₹1,500 crore (~$180 million).

    Government covers excess damages up to 300 million SDRs.

    Includes operator’s right of recourse against suppliers under specific conditions.

    Provides structured claims adjudication and excludes civil courts to streamline compensation.

    Crucial to enabling Indo-U.S. civil nuclear cooperation.

Conclusion

A historic shift in India’s nuclear policy, marked by Legal and regulatory reforms that will remove obstacles to private and foreign investment. It will access to advanced nuclear technologies through international partnerships, particularly with the U.S. It is also a significant expansion of India’s clean energy portfolio, reinforcing energy security and environmental commitments and Strengthening of the strategic civil nuclear cooperation framework with the U.S., aligning economic and geopolitical interests.

Maharashtra Scraps Hindi as Compulsory Third Language

The Maharashtra government recently scrapped its Government Resolutions (GRs) that mandated Hindi as a compulsory third language from Grades 1 to 5 in Marathi and English medium schools. While the
Share It

River Pollution in India

The Delhi government's focus on cleaning up the Yamuna River is part of a larger national effort to rejuvenate the Ganga River and its tributaries, in alignment with the Namami Gange Programme
Share It

Infrastructure Failures

The recent collapse of the Mahisagar River Bridge in Vadodara, which tragically claimed the lives of 20 people, underscores the growing concern over India's infrastructure quality. Similar
Share It

Special Intensive Revision (SIR)

The Supreme Court (SC) is currently reviewing the Election Commission of India’s (ECI) process for the Special Intensive Revision (SIR) of electoral rolls in Bihar, suggesting that Aadhaar,
Share It

GM Crop

In ongoing trade talks, the United States is advocating for India to open its agriculture market to genetically modified (GM) crops. However, India has firmly rejected this proposal, citing concer
Share It

India-Brazil Relations

India and Brazil share a growing and dynamic bilateral relationship that has evolved across various sectors since the establishment of diplomatic ties in 1948. Their Strategic Partnership, formali
Share It

Legislative Productivity

The Lok Sabha Speaker’s remarks about the need to enhance legislative productivity reflect growing concerns about the diminishing effectiveness of India’s legislative bodies. The chall
Share It

Economic Growth

India's rapid urbanization is set to dramatically shape its future. The transformation of its cities holds immense potential for economic growth, but it also brings significant challenges. As
Share It

Global South

Prime Minister Narendra Modi's visit to Brazil from July 2-9, 2025, for the BRICS summit, was not only his longest international visit in 11 years but also marked a significant diplomatic outr
Share It

Maharashtra’s Special Public Security Bill, 2024

The Maharashtra Assembly has recently passed the Special Public Security Bill, 2024, aimed at combating “urban Maoism” and left-wing extremism in the state. The Bill criminalizes activ
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS