What happened?
India is preparing to amend its nuclear liability legislation, specifically the 2010 Civil Liability for Nuclear Damage Act, to cap accident-related penalties for equipment suppliers. The proposed changes, hinted at by External Affairs Minister S. Jaishankar, seek to remove the clause that exposes suppliers to unlimited liability. A draft law by the Department of Atomic Energy proposes capping compensation that operators can claim from suppliers at the value of the original contract and introducing a specific time period for claims.
Why it matters to India
These amendments aim to revive stalled foreign investment in India’s nuclear sector, particularly from US firms, by aligning India with international norms where the operator is primarily responsible for safety. The changes are expected to encourage companies like General Electric and Westinghouse Electric to enter India’s nuclear market, supporting India’s goal to increase nuclear power generation. Parliamentary approval for the amended law is crucial for both nuclear energy expansion and concluding a trade deal with the US, which targets increasing bilateral trade to $500 billion by 2030. The government is also exploring private Indian participation in nuclear energy projects, with large domestic conglomerates considering investments.
