UPSC CURRENT AFFAIRS – 6th June 2025
Revisiting India’s Nuclear Energy Laws
Why in News?
The Government of India is considering amendments to the Civil Liability for Nuclear Damage Act, 2010 and the Atomic Energy Act, 1962.
Introduction
India is currently deliberating on amending two key laws governing its nuclear energy sector:
- The Civil Liability for Nuclear Damage Act (CLNDA), 2010
- The Atomic Energy Act, 1962
The aim is to open the nuclear energy sector to private players and boost capacity from 8 GW to 100 GW by 2047, in line with India’s net-zero commitments by 2070 and growing clean energy demands. Currently, nuclear energy accounts for less than 3% of India’s electricity generation.
Existing Legal Framework
1. Civil Liability for Nuclear Damage Act (CLNDA), 2010
- Enacted post-Fukushima (Japan, 2011) and Bhopal Gas Tragedy legacy concerns.
- Establishes a no-fault liability on operators.
- Allows the operator to seek recourse (under Section 17(b)) from suppliers in case of defective equipment or services.
2. Atomic Energy Act, 1962
- Empowers the Central government to operate and manage nuclear installations.
- Excludes private participation in ownership or operation of nuclear facilities.
Rationale for Amendments
1. Attracting Private and Foreign Investment
- The CLNDA’s recourse clause is seen as a deterrent by foreign suppliers (e.g., Westinghouse, EDF-Areva).
- Most global conventions (like the CSC – Convention on Supplementary Compensation) do not permit supplier liability, limiting India’s alignment with global norms.
2. Capacity Expansion Goals
- India aims to increase nuclear capacity to 100 GW by 2047.
- This ambitious target cannot be met by the public sector alone (i.e., NPCIL).
- Private sector participation is essential to augment financial, technical, and operational capacities.
3. Clean Energy Commitments
- India needs baseload clean power alongside solar and wind to meet its Net Zero goals.
- Nuclear energy is reliable, low-carbon, and energy-dense, making it a crucial component.
Challenges and Criticisms
1. Compromising Victim Compensation Rights
- Critics argue that amending Section 17(b) of CLNDA may weaken the legal recourse for victims in case of nuclear accidents.
- Removing supplier liability could reduce safety accountability.
2. Public Safety Concerns
- Given India’s dense population, any nuclear accident can have catastrophic humanitarian and environmental consequences.
- Bhopal Gas Tragedy still serves as a warning against corporate impunity.
3. Dilution of Sovereign Oversight
- Allowing private firms in nuclear operations may reduce state control over critical infrastructure with national security implications.
Global Precedents
- United States (Price-Anderson Act): Limits nuclear liability of operators and suppliers; liability is covered by insurance pools.
- France, Japan: Supplier liability is generally waived under the CSC and other multilateral treaties.
- India remains unique in explicitly allowing supplier liability, which has caused friction with foreign vendors.
Way Forward
1. Balanced Amendments
- Amend CLNDA to limit supplier liability, but retain strict operator liability.
- Create a robust independent regulator (strengthen AERB) to oversee safety.
2. Public-Private Partnership (PPP) Model
- Allow private sector participation in construction, maintenance, and fuel supply, while retaining NPCIL as the operator.
- This hybrid model would mitigate both security and safety risks.
3. Transparent Public Dialogue
- Hold consultations with civil society, environmental experts, legal scholars, and the public before finalising amendments.
Conclusion
- Amending India’s nuclear laws is a strategic necessity to meet the country’s long-term energy and climate goals. However, it must be done in a manner that balances industrial growth, public safety, and sovereign control.
- Lessons from both the Bhopal Gas Tragedy and Fukushima disaster underscore the need for stringent oversight and corporate accountability, even as India pursues global investment and energy security.
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Economic Implications
For Indian Exporters
- These reforms reduce transaction costs and compliance hurdles
- Encourage a more competitive and efficient export environment
- Promote value addition in key sectors like leather
For Tamil Nadu
- The reforms particularly benefit the state’s leather industry, a major contributor to employment and exports
- Boost the marketability of GI-tagged E.I. leather, enhancing rural and traditional industries
For Trade Policy
- These decisions indicate a shift from regulatory controls to policy facilitation
Reinforce the goals of Make in India, Atmanirbhar Bharat, and India’s ambition to become a leading export power
Recently, BVR Subrahmanyam, CEO of NITI Aayog, claimed that India has overtaken Japan to become the fourth-largest economy in the world, citing data from the International Monetary Fund (IMF).
India’s rank as the world’s largest economy varies by measure—nominal GDP or purchasing power parity (PPP)—each with key implications for economic analysis.
