Amendments to Nuclear Laws
The Indian government announced plans to amend the Civil Liability for Nuclear Damages Act (CLNDA) and the Atomic Energy Act.
This move is expected to ease deadlock in nuclear projects with American and French companies.
The amendments are designed to support India’s goal of achieving 100 GW of nuclear energy by 2047, with ₹20,000 crore allocated for five Small Modular Reactors (SMRs) by 2033.
Impact on Nuclear Partnerships
The amendments aim to progress two major nuclear projects: Electricite de France (EDF)'s reactors at Jaitapur and American Westinghouse Electric Company’s (WEC) reactors at Kovvada.
This initiative also seeks to open doors for the development of SMR technology in India, which is gaining traction in developed nations.
The reforms may help bring in private sector investment, with a focus on enhancing India’s nuclear power capacity.
Concerns Over High Liability
Western nuclear companies have long opposed the CLNDA's liability clauses, as they place excessive responsibility on suppliers, contradicting international norms.
The amendments in 2012, made to address domestic concerns following Bhopal and Fukushima, have caused tension with international nuclear operators.
Experts argue that these liability clauses must be re-evaluated and aligned with global standards to facilitate smoother partnerships.
Legal Adjustments and International Alignment
The planned amendments aim to align India’s nuclear liability laws with international conventions like the Convention for Supplementary Compensation for Nuclear Damage (CSC), making them more attractive to foreign companies.
Separating operator’s liability from supplier’s liability could unlock progress in contracts and joint ventures with U.S. and French companies.
The amendments could potentially resolve issues that have persisted for over two decades since India’s civil nuclear agreements with the U.S. and France.
Government's Position and Future Outlook
The government has shifted its stance from 2015 when it denied any intention to amend the CLNDA, highlighting a significant policy shift.
Despite this, the outcome of the amendments and their ability to unlock contracts with nuclear power companies remains uncertain.
With Prime Minister Modi's upcoming visits to France and the U.S., the nuclear deal discussions are expected to gain further momentum.
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