Govt Forms Committees to Amend Nuclear Energy Laws

Context

The Indian government has initiated discussions to amend key nuclear laws, namely the Atomic Energy Act (1962) and the Civil Liability for Nuclear Damage Act (CLNDA, 2010), to enable private sector participation in nuclear energy projects. Committees comprising members from the Department of Atomic Energy (DAE), Atomic Energy Regulatory Board (AERB), NITI Aayog, and the Ministry of Law and Justice have been constituted for this purpose. This move is part of India’s broader strategy to expand its nuclear energy capacity and attract both domestic and foreign investments.

Background of India’s Nuclear Liability Laws

• Atomic Energy Act, 1962:

• • • Governs nuclear energy development in India.
    • Restricts nuclear operations to government entities or government-owned companies.

• Civil Liability for Nuclear Damage Act, 2010 (CLNDA):

• • Establishes liability for nuclear damage and compensation mechanisms.

• Holds suppliers liable for nuclear accidents, which is a deviation from international norms where operators bear sole responsibility.

These laws have historically deterred private sector involvement and foreign investment due to concerns over liability risks.

Reasons for Amending the Laws

• Unlocking Stalled Projects: Several high-profile projects, such as Electricité de France’s (EDF) reactors in Jaitapur, Maharashtra, and Westinghouse’s reactors in Kovvada, Andhra Pradesh, have been delayed due to liability issues.
• Encouraging Private Sector Participation: The amendments aim to allow private companies to build and commission future nuclear reactors, addressing India’s growing energy needs.
• Attracting Foreign Investment: Aligning liability laws with international standards could make India a more attractive destination for global nuclear technology providers.
• Energy Transition Goals: The government has set a target of developing 100 GW of nuclear energy by 2047 to support its transition to clean energy.

Proposed Amendments

• Atomic Energy Act: Opportunities for private companies to participate in nuclear energy initiatives. Create avenues for joint ventures between the public and private sectors.
• Civil Liability for Nuclear Damage Act: Limitation of supplier liability within the context of international conventions such as the Convention on Supplementary Compensation (CSC). Start clearer compensation mechanisms that would increase investors’ confidence.

Challenges in Amending the Laws

• Domestic Political Opposition: Concerns over diluting safety standards and accountability may lead to resistance from opposition parties and civil society groups.
• Balancing Safety with the Needs of Industry: Difficult to create good regulation on laws that support industrial facilitation. 
• Legal Uncertainties: Amending the CLNDA without compromising victims’ rights or India’s sovereignty could be legally challenging. 
• Public Perception: Any perceived compromise on safety or accountability could face backlash from the public.

Potential Benefits

• Boosting Nuclear Energy Capacity: The amendments could unlock stalled projects and expedite new ones, significantly increasing India’s nuclear power output.
• Economic Growth: Private sector participation could bring in investments worth billions, creating jobs and boosting ancillary industries.
• Technological Advancements: Collaboration with global players can facilitate the adoption of advanced technologies like Small Modular Reactors (SMRs).
• Strengthening Global Partnerships: Aligning laws with international standards can enhance India’s strategic partnerships with countries like the U.S., France, and others.

Government Initiatives Supporting Nuclear Development

• Nuclear Energy Mission: Announced in the Union Budget 2025-26 with an outlay of ₹20,000 crore. Focus on research and development of Small Modular Reactors (SMRs).
• Policy Shift: The government has departed from its earlier stance of not amending these laws, signaling its commitment to reform.

Conclusion

The proposed amendments to India’s Atomic Energy Act and CLNDA represent a significant policy shift aimed at fostering private sector participation and foreign investment in the nuclear energy sector. While these changes could unlock immense economic and technological potential, they must be carefully crafted to address domestic political concerns and ensure safety standards are upheld. If successful, these reforms will position India as a major player in global nuclear energy while contributing significantly to its clean energy goals by 2047.

 Source: The Hindu

UPSC Mains Practice Question

Q. Discuss the key provisions of nuclear energy laws in India and their significance in ensuring nuclear safety and liability. How do these laws compare with international frameworks like the Convention on Nuclear Safety and the Vienna Convention on Civil Liability for Nuclear Damage?

Download as PDF