Nuclear energy contributes only 3% of India’s power generation, compared to the global average of 10%. With growing energy needs (especially for AI/data centers and Net Zero 2070 target), India plans to expand capacity from 8.8 GW (2024) to 100 GW by 2047.
However, legal bottlenecks in Civil Liability for Nuclear Damages Act (CLNDA), 2010 and Atomic Energy Act (AEA), 1962 have slowed nuclear expansion despite the 2005 Indo-US Nuclear Deal.
India’s current nuclear liability framework:
CLNDA, 2010:
- Introduced after Bhopal Gas tragedy memories & Fukushima disaster.
- Established operator liability (₹1,500 crore cap) with government covering excess up to ₹2,300 crores.
- Unique in imposing supplier liability (Sections 17(b) and 46), diverging from global norms under Convention on Supplementary Compensation (CSC).
AEA, 1962: Provided monopoly to government entities such as NPCIL/BHAVINI, restricting private sector participation.
Issues in Current Nuclear Liability Framework:
Supplier Deterrence:
- Section 17(b): Allows operators to sue suppliers for defects.
- Section 46: Exposes suppliers to unlimited civil/criminal liability.
- It resulted in foreign suppliers like Westinghouse (US), EDF (France) becoming hesitant to invest.
Legal Ambiguity:
- Contradiction between CSC norms and Indian statutes.
- Insurance pool (₹1,500 crore, 2019) insufficient and unclear on supplier coverage.
Stalled Projects:
- Jaitapur (France-EDF) and Kovvada (US collaboration) stalled due to liability issues.
- Only Kudankulam (Russia-backed) operational, since it predates CLNDA.
Safety & Regulatory Concerns:
- AERB lacks independence, functioning under Department of Atomic Energy creating conflict of interest.
- Dilution of supplier liability risks lowering safety standards and compensation for victims.
Strategic Dependence:
- Shift from indigenous PHWRs & thorium research towards reliance on foreign reactors.
- Risk of dependency without assured technology transfer.
| Arguments in Favour of Amendments | Arguments Against Amendments |
| Boost to Investments: Aligning with CSC norms may unlock US & French participation.Revival of Stalled Deals: Could expedite Jaitapur and Kovvada projects.Energy Security: Support India’s target of 100 GW nuclear capacity by 2047, reducing reliance on fossil fuels.Climate Goals: Helps India’s Net Zero by 2070 roadmap.Private Sector Role: Small Modular Reactors (SMRs) can be scaled with private participation if AEA amended. | Erosion of Accountability: Capping supplier liability lets foreign firms evade responsibility.Victim Compensation Concerns: Lower payouts for nuclear accident victims.Loss of Self-Reliance: Over-dependence on imports undermines indigenous programs (e.g., thorium).Safety Risks: Weak liability norms could compromise reactor quality and oversight.No Guaranteed Tech Transfer: Foreign firms unlikely to share core technologies. |
Way Forward:
Amend CLNDA:
- Clarify Sections 17(b) and 46.
- Notify an exhaustive list of “nuclear damage” to avoid tort law misuse.
- Create model insurance pools for shared supplier-operator risk.
AEA Reforms:
- Allow private sector participation in SMRs.
- Establish independent nuclear regulator (separate AERB from DAE).
Balance Safety & Investment:
- Maintain operator liability as per CSC.
- Cap supplier liability reasonably (linked to contract value).
International Diplomacy:
- Engage US, France, Japan to rebuild trust and revive pending projects.
Domestic Strategy:
- Parallel investment in indigenous PHWRs & thorium cycle for long-term self-reliance.
Conclusion:
Reforms must balance energy security, safety, and accountability, ensuring that nuclear energy becomes a reliable pillar of India’s clean energy transition. With 100 GW nuclear capacity targeted by 2047, India cannot afford legislative ambiguity to delay its progress.
‘+1’ value addition:
- Nuclear share 3% vs global 10%.
- Target: 100 GW nuclear by 2047.
- Insurance pool: ₹1,500 crores (2019) on the lines of Price-Anderson Act in the U.S.
- Regulatory commission should be modelled on the lines of the U.S. Nuclear Regulatory Commission
- Stalled projects: Jaitapur (EDF), Kovvada (Westinghouse).
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