{"id":44894,"date":"2025-06-06T20:53:00","date_gmt":"2025-06-06T15:23:00","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=44894"},"modified":"2025-07-03T15:09:44","modified_gmt":"2025-07-03T09:39:44","slug":"should-india-amend-nuclear-energy-laws","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/06-06-2025\/should-india-amend-nuclear-energy-laws","title":{"rendered":"Should India Amend its Nuclear Energy Laws?"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Energy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Discussions are ongoing in India to amend the<strong> nuclear liability framework,<\/strong> regulated by the <strong>Civil Liability for Nuclear Damages Act (CLNDA), 2010,<\/strong> and the <strong>Atomic Energy Act (AEA), 1962.<\/strong>\n<ul class=\"wp-block-list\">\n<li>It aims to<strong> allow private companies<\/strong> to build and operate nuclear energy-generation facilities.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s clean energy transition goals and net-zero commitments <strong>necessitate ramping up non-fossil energy, including nuclear.<\/strong><\/li>\n\n\n\n<li>The <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/17-06-2025\/india-civil-liability-for-nuclear-damage-act-clnda\"><strong>Civil Liability for Nuclear Damage Act, 2010 (CLNDA)<\/strong><\/a> <strong>assigns liability to suppliers, deterring foreign investment.<\/strong><\/li>\n\n\n\n<li>The debate hinges on <strong>whether amending this law is necessary or whether the obstacles are deeper and more structural.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Legal Reforms Underway<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Easing Nuclear Liability Law (Civil Liability for Nuclear Damage Act, 2010): <\/strong>Its objective is to<strong> <\/strong>limit the liability of equipment vendors in case of a nuclear accident. <strong>Key Proposed Changes:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Monetary Cap: <\/strong>Liability may be capped to the original contract value.<\/li>\n\n\n\n<li><strong>Time Limit:<\/strong> Introduce a statute of limitations for how long liability applies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Amendment to the Atomic Energy Act, 1962: <\/strong>Its objective is to allow private and foreign players to enter nuclear power generation.\n<ul class=\"wp-block-list\">\n<li><strong>Current Restriction:<\/strong> Only state-owned entities like NPCIL and NTPC Ltd can operate nuclear plants.<\/li>\n\n\n\n<li><strong>Proposed Change: <\/strong>Permit minority equity participation by foreign\/private entities in upcoming projects.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Arguments for Amending India\u2019s Nuclear Laws<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Legal Impediment to Foreign Investment:<\/strong> CLNDA creates supplier liability, which is a global anomaly.\n<ul class=\"wp-block-list\">\n<li>Companies from the U.S., France, Japan, and even Russia (post-2010) avoid entering the Indian market.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Supply Chain &amp; Technology Access:<\/strong> Without foreign suppliers, India can\u2019t reach 100 GW due to domestic industrial capacity limits.\n<ul class=\"wp-block-list\">\n<li>Amending the law is necessary for technology access, especially with SMRs (Small Modular Reactors), a promising frontier.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>International Precedents \u2013 CSC Framework:<\/strong> India is part of the Convention on Supplementary Compensation (CSC), which emphasizes operator liability, not supplier liability.\n<ul class=\"wp-block-list\">\n<li>SMRs and other new technologies should be encouraged via an investor-friendly legal framework.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Arguments Against Amending the Law:&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Misdiagnosing the Real Problem: <\/strong>The issue isn\u2019t primarily legal or investment-related; it\u2019s technological, economic, and political.\n<ul class=\"wp-block-list\">\n<li>Expansion assumptions (to 100 GW) are unrealistic; even advanced economies like the U.S. and France have not grown at that pace.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>No Guarantees of Technology Transfer: <\/strong>Experience in defence shows no meaningful tech transfer despite 100% FDI.\n<ul class=\"wp-block-list\">\n<li>SMRs are untested at scale; investment and transfer are unlikely without guaranteed returns, which India cannot ensure.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Over-reliance on Hypotheticals: <\/strong>Policy cannot be made on the assumption that private companies will change behaviour once the law is amended.\n<ul class=\"wp-block-list\">\n<li>India\u2019s plan to build five small reactors domestically shows it may be more realistic to scale indigenous designs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Sovereignty and Public Safety:<\/strong> Diluting supplier liability may reduce accountability and compromise public interest.\n<ul class=\"wp-block-list\">\n<li>India\u2019s unique liability regime was created in the wake of Bhopal and Chernobyl experiences; it&#8217;s rooted in justice and deterrence.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s push to expand nuclear energy to meet its clean<strong> energy targets by 2047 faces a key legal obstacle in its liability law.&nbsp;<\/strong><\/li>\n\n\n\n<li>While some argue that <strong>amending the law is essential <\/strong>to attract foreign investment and technology, <strong>others caution<\/strong> that the real issues lie in economic viability, safety, and over-reliance on foreign participation.&nbsp;<\/li>\n\n\n\n<li><strong>A balanced path <\/strong>may involve nurturing indigenous capabilities, selectively opening up to foreign participation under tight regulatory frameworks, and ensuring public safety is not compromised.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/should-india-amend-its-nuclear-energy-laws\/article69662033.ece\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">Discussions are ongoing in India to amend the nuclear liability framework, regulated by the Civil Liability for Nuclear Damages Act (CLNDA), 2010, and the Atomic Energy Act (AEA), 1962.<\/li>\n<p><\/p>\n<h3><strong>About<\/strong><\/h3>\n<li class=\"ms-5\">India\u2019s clean energy transition goals and net-zero commitments necessitate ramping up non-fossil energy, including nuclear.<\/li>\n<li class=\"ms-5\">The Civil Liability for Nuclear Damage Act, 2010 (CLNDA) assigns liability to suppliers, deterring foreign investment.<\/li>\n<li class=\"ms-5\">The debate hinges on whether amending this law is necessary or whether the obstacles are deeper and more structural.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/06-06-2025\/should-india-amend-nuclear-energy-laws\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44894","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=44894"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44894\/revisions"}],"predecessor-version":[{"id":46781,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44894\/revisions\/46781"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=44894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=44894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=44894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}