INDIA’S AMENDMENTS TO NUCLEAR LIABILITY LAWS

GS2 GOVERNANCE: 

The Government of India has introduced amendments to the Civil Liability for Nuclear Damages Act (CLNDA) 2010 and the Atomic Energy Act 1962 to attract foreign nuclear investments, especially from American and French companies. These amendments aim to address challenges faced in past nuclear projects.

Context of the Amendments

• The changes are intended to revive stalled projects such as:
  • Electricite de France (EDF) for six reactors at Jaitapur.
  • Westinghouse Electric Company (WEC) for six reactors at Kovvada.
• Focus on integrating small modular reactors (SMRs) into India’s nuclear strategy.

Legal Disputes and Opposition

• Western companies opposed strict liability clauses in the 2010 CLNDA, citing conflicts with the International Convention for Supplementary Compensation (CSC).
• These clauses were introduced after disasters like Bhopal Gas Tragedy (1984) and Fukushima (2011).

Key Facts About Civil Nuclear Liability

• CLNDA 2010 provides a compensation system for victims of nuclear accidents.
• Operator’s Liability: Operators must pay compensation even if not at fault, capped at ₹1,500 crore.
• Government’s Role: Steps in if claims exceed ₹1,500 crore, with a cap of 300 million SDRs.
• Supplier Liability Clause: Operators can claim compensation from suppliers if accidents are due to defective equipment or poor-quality services.

Controversies and Issues

• The Supplier Liability Clause is controversial as it raises concerns over liability risks, unclear insurance rules, and overlapping laws.
• Fixed compensation limits may be inadequate for severe nuclear disasters, and taxpayers may bear the cost for state-owned plants.
• Lack of provisions for clean-up costs and the inability to sue foreign suppliers in their own countries adds to the complexity.

Historical Policy Reversal

• In 2015, India rejected amending the CLNDA despite a nuclear deal with the U.S.
• A ₹1,500 crore insurance pool failed to attract investments.

Current Nuclear Power Landscape in India

• 6,780 MW of nuclear power capacity from 22 reactors.
• Russia’s Rosatom is the only foreign operator in India.
• The government aims for 100 GW of nuclear energy by 2047, with a ₹20,000 crore investment in small modular reactors (SMRs) by 2033.