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Plan to amend nuclear liability law may enthuse American, French firms

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(Source – The Hindu, International Edition – Page No. – 4)

Topic: GS2 – Indian polity, GS3 –  Indian Economy – Infrastructure – Energy
Context
  • The government plans to amend CLNDA and the Atomic Energy Act to resolve liability issues and attract foreign investment in nuclear energy.

Proposed Amendments to CLNDA and Atomic Energy Act

  • The Civil Liability for Nuclear Damage Act (CLNDA) will be amended to separate the operator’s liability from the supplier’s liability.
  • This change will align India’s legal framework with the international Convention for Supplementary Compensation for Nuclear Damage (CSC).
  • The Atomic Energy Act will be amended to allow greater private and foreign investment in nuclear power projects.
  • These amendments aim to break the legal deadlock that has stalled nuclear projects with U.S. and French companies for over 15 years.
  • The reforms will enable the completion of the Electricité de France (EDF) project at Jaitapur and the Westinghouse Electric Company (WEC) project at Kovvada.
  • The government’s move marks a reversal from its 2015 stance, when it had ruled out amending CLNDA.

Benefits of These Amendments

  • The amendments will facilitate the entry of American and French nuclear power companies into India’s energy sector.
  • They will help India achieve its goal of at least 100 GW of nuclear energy capacity by 2047.
  • Increased investment in small modular reactors (SMRs) will support India’s clean energy transition.
  • Resolving liability concerns will boost confidence among foreign suppliers, leading to faster project execution.
  • The reforms will allow India to develop advanced nuclear technologies, enhancing energy security.
  • Greater private sector participation will drive job creation and technological innovation in the nuclear sector.
  • Strengthened international nuclear partnerships will improve India’s geopolitical and economic standing. 
Practice Question:  Discuss the significance of the proposed amendments to the Civil Liability for Nuclear Damage Act (CLNDA) and the Atomic Energy Act in facilitating India’s nuclear energy expansion. (150 Words /10 marks)

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