INDIA'S NUCLEAR POLICY SHIFT

India proposes amendments to CLNDA and Atomic Energy Act to attract private and foreign investments in nuclear energy.

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India's recent proposal to amend the Civil Liability for Nuclear Damage Act (CLNDA) of 2010 and the Atomic Energy Act of 1962 marks a significant shift in the nation's nuclear energy policy. This initiative aims to attract foreign and private investments, thereby accelerating the development of nuclear power infrastructure and aligning with India's ambitious energy and environmental objectives.

India's nuclear journey began in 1948 with the establishment of the Atomic Energy Commission (AEC) under the leadership of Homi J. Bhabha. The AEC was tasked with formulating policies for the development of atomic energy in the country. Subsequently, the Department of Atomic Energy (DAE) was created under the direct charge of the Prime Minister, underscoring the strategic importance accorded to nuclear energy.

In 1962, the Atomic Energy Act was enacted, granting the central government exclusive rights over nuclear materials and technology. This legislation laid the foundation for a state-controlled nuclear sector, with the Nuclear Power Corporation of India Limited (NPCIL) emerging as the primary entity responsible for nuclear power generation.

The CLNDA of 2010 was introduced to establish a legal framework for compensation in the event of a nuclear incident. However, certain provisions within the CLNDA, particularly those concerning supplier liability, have been perceived as deterrents to foreign investment. These clauses hold suppliers accountable for damages in the event of an accident, a stipulation that deviates from international norms where operators typically bear primary liability. Consequently, major international nuclear companies have been hesitant to engage in India's nuclear market.

As of November 2024, India operates 24 nuclear reactors across eight nuclear power plants, with a total installed capacity of 8,180 MW, accounting for approximately 3% of the country's total power generation.