{"id":45586,"date":"2025-06-17T19:53:32","date_gmt":"2025-06-17T14:23:32","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=45586"},"modified":"2025-07-03T15:16:19","modified_gmt":"2025-07-03T09:46:19","slug":"india-civil-liability-for-nuclear-damage-act-clnda","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/17-06-2025\/india-civil-liability-for-nuclear-damage-act-clnda","title":{"rendered":"India\u2019s Civil Liability for Nuclear Damage Act (CLNDA)"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/Governance<\/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>India is <strong>considering easing nuclear liability laws<\/strong>, specifically to reduce accident-related fines on equipment suppliers, in order to attract U.S. and other foreign firms for civil nuclear projects.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Civil Nuclear Liability?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Civil nuclear liability laws <strong>ensure compensation to victims<\/strong> in case of nuclear accidents and define who is liable for such compensation.<\/li>\n\n\n\n<li><strong>Liability is generally assigned to the operator<\/strong> of the nuclear installation, often a public entity, to streamline legal processes and ensure availability of compensation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Nuclear Infrastructure<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India operates<strong> 22 nuclear reactors<\/strong>, all run by<strong> Nuclear Power Corporation of India Limited (NPCIL), with plans for more.<\/strong><\/li>\n\n\n\n<li>Despite signing civil nuclear agreements with the U.S., France, and Japan, <strong>only Russia is currently executing projects (Kudankulam),<\/strong> largely due to concerns around India\u2019s liability regime.\n<ul class=\"wp-block-list\">\n<li>Jaitapur Nuclear Plant (with France) has been pending since 2009, the liability concerns remain unresolved.<\/li>\n\n\n\n<li>Kovvada Project (Andhra Pradesh): Yet to proceed.<\/li>\n\n\n\n<li>Only Russia (Kudankulam) is implementing nuclear projects <strong>due to pre-CLNDA agreements.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>International Legal Framework<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>After the 1986 Chernobyl disaster,<\/strong> the global nuclear liability regime evolved.<\/li>\n\n\n\n<li>The international legal framework on civil nuclear liability is based <strong>on the central principle of exclusive liability of the operator <\/strong>of a nuclear installation and no other person.&nbsp;<\/li>\n\n\n\n<li><strong>The Convention on Supplementary Compensation (CSC) <\/strong>was adopted in <strong>1997<\/strong>.\n<ul class=\"wp-block-list\">\n<li>It sets <strong>minimum compensation levels<\/strong> and allows <strong>supplementary public funds from member states if needed.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Even though India was a signatory to the CSC,<strong> Parliament ratified the convention only in 2016.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>To keep in line with the international convention, <strong>India enacted the Civil Liability for Nuclear Damage Act (<a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/06-06-2025\/should-india-amend-nuclear-energy-laws\">CLNDA<\/a>) in 2010, <\/strong>to put in place a speedy compensation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Reasons for not making Supplier Liable:<\/strong> In the initial phase of nuclear energy development, foreign governments and the nuclear industry agreed that:\n<ul class=\"wp-block-list\">\n<li><strong>Excessive liability claims on suppliers<\/strong> would make their participation <strong>financially unviable.<\/strong><\/li>\n\n\n\n<li>Such risks could <strong>hinder<\/strong> the expansion of nuclear energy.<\/li>\n\n\n\n<li>Hence, liability was channeled exclusively to plant operators, with only a few exceptions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The<strong> CSC permits operator\u2019s right<\/strong><strong>of recourse against suppliers only under two conditions:<\/strong>\n<ul class=\"wp-block-list\">\n<li>If it is <strong>expressly agreed<\/strong> in the contract.<\/li>\n\n\n\n<li>If the nuclear incident results from an <strong>intentional act or omission<\/strong> by the supplier.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Provisions of CLNDA, 2010<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India went beyond CSC conditions<\/strong> by introducing <strong>supplier liability in the Civil Liability for Nuclear Damage Act (CLNDA).<\/strong><\/li>\n\n\n\n<li><strong>Reason for Deviation:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Inspired by <strong>past tragedies like the Bhopal Gas Disaster (1984),<\/strong> where <strong>defective equipment <\/strong>played a role.<\/li>\n\n\n\n<li>Legislators aimed to<strong> ensure accountability beyond<\/strong> just the operator.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Operator Liability:<\/strong> Imposes <strong>strict and no-fault liability<\/strong> on the operator.\n<ul class=\"wp-block-list\">\n<li>As per the Act, operator means the <strong>Central Government or any authority or corporation <\/strong>who has been granted a <strong>licence<\/strong> pursuant to the Atomic Energy Act, 1962 for the operation of that installation.<\/li>\n\n\n\n<li>Operator must pay \u20b91,500 crore in damages, insured or secured via financial means.<\/li>\n\n\n\n<li>If claims exceed this, the government will cover up to 300 million Special Drawing Rights (SDRs) (\u20b92,100\u2013\u20b92,300 crore).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Supplier Liability (Section 17):<\/strong> It is unique to India and introduces liability for suppliers under:\n<ul class=\"wp-block-list\">\n<li><strong>17(a):<\/strong> If contractually agreed.<\/li>\n\n\n\n<li><strong>17(b): <\/strong>If an incident results from<strong> defective equipment <\/strong>or services (even if not intentional).<\/li>\n\n\n\n<li><strong>17(c):<\/strong> If caused intentionally by the supplier.<\/li>\n\n\n\n<li><strong>This goes beyond CSC,<\/strong> which allows recourse only if contractually agreed or intentional wrongdoing is proven.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Legal Ambiguity (Section 46): <\/strong>It states that other legal proceedings (civil\/criminal) are not barred by the Act, which opens door to <strong>civil suits outside CLNDA<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Raises fear among suppliers of being sued under tort law, potentially leading to unlimited liability, despite the capped liability for operators.<\/li>\n\n\n\n<li><strong>Tort law<\/strong> is considered to be a form of <strong>restorative justice <\/strong>since it seeks to remedy losses or injury by providing monetary compensation.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government\u2019s Position<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The central government has maintained that the <strong>Indian law is in consonance with the CSC till now.&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>About Section 17(b),<\/strong> it said that the provision <strong>\u201cpermits\u201d but \u201cdoes not require\u201d <\/strong>an operator to include in the contract or exercise the right to recourse.<\/li>\n\n\n\n<li><strong>Section 46:<\/strong> The provision has no mention of \u2018supplier\u2019, and so is \u2018operator specific\u2019.\n<ul class=\"wp-block-list\">\n<li>This section applies exclusively to the operator and does not extend to the supplier is confirmed by the Parliamentary debates at the time of the adoption of this Act.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India&#8217;s unique inclusion of supplier liability under CLNDA diverges from global norms.<\/li>\n\n\n\n<li>It has become a <strong>major barrier to operationalising civil nuclear deals.<\/strong><\/li>\n\n\n\n<li>While the government maintains that the law permits flexibility, the legal text allows supplier liability even in absence of explicit contractual provisions.<\/li>\n\n\n\n<li>Unless clarified or amended, <strong>foreign participation in India\u2019s nuclear sector may remain minimal, <\/strong>affecting energy security and bilateral nuclear cooperation.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/epaper.thehindu.com\/ccidist-ws\/th\/th_international\/issues\/136038\/OPS\/GUMEFT912.1+GCVEGV767.1.html\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Read this in Hindi: <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs-hindi\/17-06-2025\/%e0%a4%ad%e0%a4%be%e0%a4%b0%e0%a4%a4-%e0%a4%aa%e0%a4%b0%e0%a4%ae%e0%a4%be%e0%a4%a3%e0%a5%81-%e0%a4%95%e0%a5%8d%e0%a4%b7%e0%a4%a4%e0%a4%bf-%e0%a4%a8%e0%a4%be%e0%a4%97%e0%a4%b0%e0%a4%bf%e0%a4%95-%e0%a4%a6%e0%a4%be%e0%a4%af%e0%a4%bf%e0%a4%a4%e0%a5%8d%e0%a4%b5-%e0%a4%85%e0%a4%a7%e0%a4%bf%e0%a4%a8%e0%a4%bf%e0%a4%af%e0%a4%ae\">\u092d\u093e\u0930\u0924 \u0915\u093e \u092a\u0930\u092e\u093e\u0923\u0941 \u0915\u094d\u0937\u0924\u093f \u0915\u0947 \u0932\u093f\u090f \u0928\u093e\u0917\u0930\u093f\u0915 \u0926\u093e\u092f\u093f\u0924\u094d\u0935 \u0905\u0927\u093f\u0928\u093f\u092f\u092e (CLNDA)<\/a><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">India is considering easing nuclear liability laws, specifically to reduce accident-related fines on equipment suppliers, in order to attract U.S. and other foreign firms for civil nuclear projects.<\/li>\n<p><\/p>\n<h3><strong>What is Civil Nuclear Liability?<\/strong><\/h3>\n<li class=\"ms-5\">Civil nuclear liability laws ensure compensation to victims in case of nuclear accidents and define who is liable for such compensation.<\/li>\n<li class=\"ms-5\">Liability is generally assigned to the operator of the nuclear installation, often a public entity, to streamline legal processes and ensure availability of compensation.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/17-06-2025\/india-civil-liability-for-nuclear-damage-act-clnda\" 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-45586","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\/45586","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=45586"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/45586\/revisions"}],"predecessor-version":[{"id":46786,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/45586\/revisions\/46786"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=45586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=45586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=45586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}