Introduction

India’s nuclear sector, long constrained by legal rigidity and liability concerns, is on the verge of transformation. Two yet-to-be-proposed amendments to the Civil Liability for Nuclear Damage Act (CLNDA), 2010, and the Atomic Energy Act, 1962, mark a potential inflexion point for India’s atomic energy policy. These changes aim to attract private participation, foreign technology, and financing for nuclear power at a time when India is seeking reliable base-load alternatives to coal amid renewable intermittency.

Why in the News

The Government of India is preparing two key amendments to the overarching legislation governing the nuclear energy sector. These include:

1. Easing provisions under the CLNDA, which has so far deterred private and foreign suppliers due to its unique liability clause.
2. Tweaking the Atomic Energy Act, 1962, to permit private capital participation in nuclear projects, including Small Modular Reactors (SMRs).

This move is significant because private participation in nuclear power generation would be a first in India’s history, potentially unlocking foreign investments, advanced technology, and new energy security pathways.

India’s Atomic Sector: The Turning Point

1. Policy Stagnation: India’s nuclear sector has been constrained by a state monopoly and the restrictive liability regime under CLNDA 2010.
2. Base-load Pressure: The growing share of renewables has created an urgent need for dependable, round-the-clock power sources to stabilise the grid.
3. Technology Imperative: Advanced nuclear technologies like Pressurised Heavy Water Reactors (PHWRs) and SMRs offer scalability, modularity, and carbon-neutral power generation.

What are the Proposed Legal Amendments?

Liability Law and Civil Liability for Nuclear Damage Act, 2010 (CLNDA)

• Objective: To create a mechanism for compensating victims in the event of a nuclear accident while easing supplier liability.
• Issue: Section 17(b) allows the operator to seek recourse from suppliers, discouraging foreign firms from supplying equipment.
• Yet to be proposed Change: Easing or redefining supplier liability to allow greater participation by private and foreign firms such as Westinghouse (US) and Framatome (France).
• Expected Impact: Unlocks foreign investment, technology transfer, and cost-effective reactor construction for the upcoming fleet of nuclear projects.

Atomic Energy Act, 1962-Enabling Private Entry

• Current Restriction: The Act allows only government entities to construct and operate nuclear power plants.
• Yet to be proposed Amendment: Permitting private entities to invest in and operate select reactor types, especially Small Modular Reactors (SMRs).
• Outcome: Encourages joint ventures between state-owned NPCIL and private players to accelerate capacity addition.
• Strategic Aim: To create a hybrid public-private nuclear ecosystem focused on innovation, faster project execution, and flexible deployment.

Small Modular Reactors (SMRs): The Next Frontier

1. Definition: Compact, factory-assembled nuclear reactors that can be transported and installed modularly.
2. Government Focus: NPCIL announced domestic SMR design by March 2024; Reliance Industries, Adani Power, and Tata Power have shown interest.
3. Advantages:
   1. Scalability: Easier to construct and replicate than large nuclear plants.
   2. Flexibility: Ideal for decentralised base-load generation alongside renewables.
   3. Lower Risk: Smaller footprint and enhanced safety features.
4. Global Trend: Aligns India with global leaders like the US, Russia, France, and China in SMR technology development.

Why Private and Foreign Participation Matters

1. Capital Infusion: Nuclear power projects are capital-intensive; private entry reduces fiscal burden on the exchequer.
2. Technology Access: Enables partnerships with established players like Westinghouse, GE-Hitachi, and Framatome.
3. Diversification: Strengthens India’s energy mix amid pressure to phase down coal.
4. Climate Goals: Supports India’s Net Zero 2070 target by ensuring low-carbon, base-load power generation.

Strategic Significance for India’s Energy Security

1. Energy Reliability: Addresses intermittency of renewables through stable nuclear base-load.
2. Geopolitical Leverage: Strengthens India’s bargaining position in global nuclear technology markets.
3. Make in India Synergy: Promotes domestic manufacturing of nuclear components and reactors.
4. Export Potential: Long-term goal of turning India into an SMR export hub for developing economies.

Conclusion

These likely to be proposed amendments mark a historic liberalisation of India’s nuclear policy, balancing liability protection with private and foreign participation. As India expands its clean energy basket, nuclear power is emerging as the bridge between renewables and reliability, supporting a long-term vision of sustainable, secure, and carbon-neutral growth.

PYQ Relevance

[UPSC 2017] Give an account of the growth and development of nuclear science and technology in India. What is the advantage of fast breeder reactor programme in India?

Linkage: The PYQ connects past technological indigenization in nuclear science with current policy liberalization through CLNDA and Atomic Energy Act amendments. Both mark India’s shift toward advanced, self-reliant, and globally integrated nuclear energy development.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now