By Dipak Kurmi
India’s recent initiative to amend the Civil Liability for Nuclear Damage Act (CLNDA) of 2010 and the Atomic Energy Act of 1962 represents a pivotal moment in the nation’s nuclear energy journey. This move reflects a determined effort to attract foreign investments and private-sector participation, thereby accelerating the expansion of the country’s nuclear power infrastructure. This policy shift is not just a pragmatic step to boost energy production but also a strategic alignment with India’s ambitious energy security and environmental sustainability goals.
India’s engagement with nuclear energy dates back to 1948, with the establishment of the Atomic Energy Commission (AEC) under the visionary leadership of Homi J. Bhabha. Tasked with steering the nation’s atomic energy development, the AEC laid the groundwork for a state-controlled nuclear sector. This was followed by the creation of the Department of Atomic Energy (DAE), reflecting the government’s prioritization of nuclear power as a strategic resource. The enactment of the Atomic Energy Act of 1962 granted the central government exclusive control over nuclear materials and technology, further cementing this centralized framework.
The CLNDA of 2010, designed to provide a legal framework for compensating victims of nuclear incidents, introduced a controversial supplier liability clause. This provision, which holds suppliers accountable for damages in the event of an accident, deviates from global norms where operators typically bear primary liability. While well-intentioned in ensuring accountability, this clause has deterred international nuclear suppliers and investors, effectively stalling foreign collaborations in the sector.
As of November 2024, India operates 24 nuclear reactors with a combined capacity of 8,180 MW, contributing a modest 3% to the nation’s electricity generation. In contrast, countries like the United States and France derive 20% and 70% of their electricity, respectively, from nuclear power. Even China, a relatively late entrant to the nuclear domain, has surged ahead with 54 reactors contributing 52,200 MW, approximately 5% of its total electricity generation. India, however, has ambitious plans to increase its nuclear capacity to 20,000 MW by 2032 and a staggering 100,000 MW by 2047, positioning nuclear energy as a cornerstone of its long-term energy strategy.
The proposed amendments to the CLNDA aim to recalibrate liability provisions, aligning India’s framework with international conventions such as the Convention on Supplementary Compensation for Nuclear Damage (CSC). By limiting supplier liability and adopting globally accepted standards, India seeks to assuage foreign investors’ concerns and unlock avenues for international collaborations. The inclusion of private and foreign players is expected to expedite the development of new nuclear power plants, leveraging advanced technologies and fostering capacity-building.
Collaborations with global giants like General Electric and Westinghouse, which have been hesitant to engage with India due to liability concerns, could now gain momentum. Such partnerships promise not only technological advancement but also significant knowledge transfer, enhancing India’s domestic capabilities in nuclear technology.
Comparatively, countries like China have successfully attracted foreign investment in their nuclear sector by offering favorable liability terms, government-backed insurance schemes, and streamlined regulatory frameworks. These measures have created a conducive environment for international collaborations, a model India seems keen to emulate.
The Indian government’s establishment of a Nuclear Energy Mission with a budget of ₹20,000 crore underscores its seriousness about achieving nuclear expansion. Central to this mission is the development of small modular reactors (SMRs), which are expected to be operational by 2033. SMRs, with their lower capital costs, enhanced safety features, and deployment flexibility, represent a promising innovation for diversifying India’s energy portfolio.
Nuclear energy is also central to India’s commitment to achieving net-zero carbon emissions by 2070. As a low-carbon energy source, nuclear power offers a sustainable solution to reduce dependence on fossil fuels and mitigate greenhouse gas emissions. The government’s proactive policy shift reflects its recognition of nuclear energy’s role in balancing economic growth with environmental stewardship.
However, the path to nuclear expansion is fraught with challenges. Public apprehension about nuclear energy, fueled by global incidents such as Chernobyl and Fukushima, demands transparent communication and robust safety protocols to build trust. Effective radioactive waste management is another critical concern, necessitating stringent safeguards to ensure environmental sustainability.
Economic considerations also play a significant role. The capital cost of constructing nuclear reactors in India ranges from ₹100 to ₹200 billion per reactor, a significant financial commitment. Investments in SMRs and thorium-based reactors are being explored as cost-effective and sustainable alternatives. These technologies not only promise greater efficiency but also align with India’s indigenous resource availability, particularly thorium.
Historical experiences further shape India’s nuclear trajectory. The Bhopal Gas Tragedy of 1984 deeply influenced the country’s stringent liability laws, fostering a culture of heightened accountability for industrial disasters. This legacy has shaped public and policy perspectives, necessitating a delicate balance between fostering foreign investment and ensuring robust safety standards.
Projects like the Kudankulam Nuclear Power Plant, developed in collaboration with Russia, highlight both the potential and complexities of international partnerships in India’s nuclear sector. While successful in enhancing capacity, such projects have faced delays, public protests, and cost overruns, underscoring the multifaceted challenges of nuclear energy development.
The 2008 India-U.S. nuclear agreement was a landmark moment in fostering bilateral cooperation, but differences over liability provisions have since hindered progress. The proposed amendments to the CLNDA and Atomic Energy Act seek to address these long-standing barriers, signaling India’s intent to create a more investor-friendly environment.
India’s proposal to amend its nuclear liability laws represents a strategic recalibration aimed at revitalizing its nuclear energy sector. By aligning with global norms and fostering private and foreign participation, the government seeks to achieve its ambitious energy targets, enhance energy security, and fulfill its environmental commitments. However, the success of these reforms will depend on navigating regulatory, financial, and societal challenges with precision. A sustainable and publicly acceptable expansion of nuclear energy could well position India as a global leader in clean and secure energy production, driving its journey toward a greener and more resilient future.
(The writer can be reached at dipakkurmiglpltd@gmail.com)
