Why in NEWS?
India is considering amending the Civil Liability for Nuclear Damage Act (CLNDA), 2010 to reduce accident-related penalties on nuclear equipment suppliers.
This move aims to revive stalled nuclear power projects and attract foreign investments, particularly from countries like the United States and France, in order to meet India’s clean energy goals.
Key Terms/Concepts
| Term | Explanation |
|---|---|
| CLNDA, 2010 | A law to ensure victim compensation and fix responsibility for nuclear accidents in India. |
| Supplier Liability | Legal responsibility of companies providing nuclear equipment if an accident occurs due to defects. |
| Operator | Entity running the nuclear facility (In India, it is NPCIL). |
| CSC, 1997 | International treaty that provides additional compensation for nuclear damage beyond national limits. |
| Section 17(b) | Provision in CLNDA that makes suppliers liable for defects leading to nuclear accidents. |
| Section 46 | Allows application of other civil laws, raising concern about additional lawsuits. |
| SMRs (Small Modular Reactors) | Compact nuclear reactors designed for safer, cost-effective energy generation. |
News Details
- India’s strict liability laws, especially Section 17(b) of CLNDA, 2010, are viewed as barriers by foreign suppliers.
- International norms under the CSC typically place full liability on operators, not suppliers.
- India ratified the CSC in 2016 but still follows a broader liability structure through its national law.
- Projects like Jaitapur (France’s EDF) and Kovvada (US firms) are stalled due to liability concerns.
- Nuclear energy accounts for only 1.6% of India’s electricity but is essential for achieving 25% by 2050.
Comparison Table: CLNDA vs CSC
| Aspect | CLNDA (India) | CSC (Global Norm) |
|---|---|---|
| Operator Liability | Rs. 1,500 crore | Unlimited or as per national law |
| Supplier Liability | Yes | No (unless intentional fault) |
| Government Role | Pays beyond operator limit (up to SDR 300 million) | Provides additional global pool |
| Legal Risk | High due to Section 17(b) and 46 | Limited to specified compensation routes |
In a Nutshell (Memory Aid)
“CLNDA = Compensation Law Not Done Attractively”
Use this mnemonic to recall that India’s nuclear law discourages foreign participation due to liability issues.
Key Concerns with CLNDA, 2010
| Issue | Impact |
|---|---|
| Broad Supplier Liability | Creates legal uncertainty and limits foreign entry |
| Section 46 | Raises fear of civil suits beyond the act |
| Not fully aligned with CSC | International mistrust |
| Project delays | Key nuclear projects remain stalled |
| Slow clean energy growth | Hinders India’s 2030 non-fossil fuel target |
Way Forward: Suggested Measures
| Measure | Description |
|---|---|
| Amend Section 17(b) | Restrict liability to intentional misconduct or gross negligence |
| Legal Clarity | Align CLNDA with CSC for predictability |
| Insurance Pool | Set up domestic or international insurance consortium |
| Bilateral Agreements | Intergovernmental agreements with nations like US, France |
| Private Participation | Amend Atomic Energy Act to allow private role in SMRs |
| Safety Framework | Strengthen AERB and third-party audits |
| Investment Incentives | Offer tax breaks, low-interest loans for nuclear investment |
India’s Nuclear Energy Status
| Indicator | Data |
|---|---|
| Nuclear Share (May 2023) | 1.6% |
| Current Capacity | 7.5 GW |
| Target by 2047 | 100 GW |
| Operator | NPCIL |
| Planned Projects | 5 Small Modular Reactors (SMRs) by 2033 |
| Major Stalled Projects | Jaitapur (France), Kovvada (US) |
Prelims Practice Questions
Q1. Which of the following statements about the Civil Liability for Nuclear Damage Act, 2010 is/are correct?
- It allows liability claims against nuclear equipment suppliers.
- It is fully aligned with the Convention on Supplementary Compensation.
- It caps the operator’s liability at Rs 1,500 crore.
A. 1 and 3 only
B. 2 and 3 only
C. 1 and 2 only
D. All of the above
Q2. Consider the following about the Convention on Supplementary Compensation (CSC), 1997:
- It was created after the Chernobyl disaster.
- It allows only Vienna or Paris Convention members to join.
- It provides an international fund for nuclear accident compensation.
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. All of the above
Q3. Which of the following is true about Small Modular Reactors (SMRs)?
- They are large reactors that require extensive infrastructure.
- India plans to include private sector in SMR development.
- SMRs are designed for enhanced safety and faster deployment.
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. All of the above
Mains Practice Questions
1. Discuss the implications of India’s Civil Liability for Nuclear Damage Act, 2010 on its nuclear energy diplomacy and clean energy goals. (250 words)
2. Should India reform its nuclear liability framework to encourage foreign investment? Critically examine with reference to the CLNDA and CSC. (250 words)
Previous Year Question – UPSC GS-3 (2018):
“India’s proximity to two of the world’s biggest nuclear powers necessitates a sound nuclear policy.” Comment.
Answers Table (Prelims)
| Question | Answer | Explanation |
|---|---|---|
| Q1 | A | Statement 2 is incorrect; India’s law is not fully aligned with CSC. |
| Q2 | B | Statement 2 is incorrect; CSC allows non-parties to join if laws align. |
| Q3 | B | Statement 1 is incorrect; SMRs are small and flexible, not large reactors. |
