Recently, the government has announced plans to amend the Civil Liability for Nuclear Damage Act (CLNDA) and the Atomic Energy Act.

• The announcement marks a policy shift from the government’s previous stance in 2015, which had ruled out amendments to the Act.
• The move is expected to revive stalled nuclear power projects with France’s Electricite de France (EDF) and the U.S.-based Westinghouse Electric Company (WEC).
• The amendments aim to align India’s nuclear liability laws with international conventions, addressing concerns of global nuclear suppliers.

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About Civil Liability for Nuclear Damage Act (CLNDA) and Atomic Energy Act

• CLNDA (2010) establishes liability for nuclear accidents and ensures compensation for victims.
• The law mandates high liability for suppliers of nuclear components, unlike international norms where only operators are held responsible.
  • It was enacted following concerns raised in Parliament over the Bhopal Gas Tragedy (1984).
• The Atomic Energy Act governs nuclear energy development in India, allowing only government-controlled operations with limited private sector participation.
• In 2019, an insurance pool of ₹1,500 crores was set up to cover liability risks, but it failed to attract foreign investors.

International Convention

• Vienna Convention on Civil Liability for Nuclear Damage (1963):
  • Enacted in 1963 under the International Atomic Energy Agency (IAEA) framework.
  • Establishes civil liability for nuclear damage and ensures compensation for victims of nuclear incidents.
  • Places exclusive liability on nuclear operators, ensuring swift compensation.
  • Requires mandatory financial security (e.g., insurance) for nuclear operators.
  • Adopted by 40+ countries.
  • India is not a signatory.
• Convention on Supplementary Compensation for Nuclear Damage (CSC) (1997):
• • Adopted in 1997, effective 2015 to enhance global nuclear liability.
  • Establishes additional compensation funds beyond national limits.
  • Strengthens international cooperation and uniform liability rules.
  • India ratified CSC in 2016, aligning its Civil Liability for Nuclear Damage Act, 2010 with global norms.

About the Proposed Amendment

• Objectives of the Proposed Amendment: The amendment aims to address supplier liability concerns, aligning India’s legal framework with international nuclear agreements.
• Facilitation of Stalled Projects: The changes are expected to revive long-pending nuclear power projects, including:
  • EDF’s Jaitapur Nuclear Project (Maharashtra) – Six EPR1650 reactors.
  • Westinghouse’s Kovvada Project (Andhra Pradesh) – Six AP1000 reactors.
• Promotion of Small Modular Reactors (SMRs): The amendment seeks to support the development of Small Modular Reactors (SMRs).
  • ₹20,000 crore has been allocated for the establishment of five SMRs by 2033.
• India’s Nuclear Energy Expansion Goals: India aims to increase nuclear energy capacity to 100 GW by 2047, up from the current 6,780 MW from 22 reactors.
• Encouraging Global Partnerships and Investments: Legal clarity will help India attract private investment and strengthen international partnerships in the nuclear energy sector.

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Impact of Amendment on Nuclear Energy Sector

• Boost to Foreign Investments: Aligning CLNDA with international standards will encourage U.S. and French companies to invest in India’s nuclear energy projects.
• Breakthrough in Long-Pending Deals: Will revive stalled contracts signed over a decade ago, expediting nuclear power expansion.
• Expansion of Nuclear Capacity: Strengthening India’s nuclear energy sector will reduce dependence on fossil fuels and help meet clean energy targets.
• Enhanced Private Sector Participation: Amendments to the Atomic Energy Act may enable greater involvement of domestic and international private players.
• Strengthened Strategic Ties: Expected to be a key topic during Modi’s visits to the U.S. and France, reinforcing India’s role in global nuclear energy cooperation.

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