India's Nuclear Energy Dilemma

The evolution of India's nuclear policy has encountered significant challenges and transformations. The government's recent decision to amend the Civil Liability for Nuclear Damage Act (CLNDA) 2010 and the Atomic Energy Act (AEA) 1962 is a step towards enhancing private sector participation in nuclear energy, following prior missteps.

Historical Context and Challenges

• India faced global isolation due to nuclear and technology sanctions, which were dismantled through a landmark India-US deal.
• The CLNDA created barriers for international nuclear companies, particularly due to stringent supplier liability clauses.
• Clause 17 of CLNDA exposed vendors to unlimited liability, contrary to international conventions like the 1997 Vienna Convention.
• India's non-compliance impacted its bid for Nuclear Suppliers Group (NSG) membership, with China blocking India's entry.

Current Developments

• The US company Holtec received authorization to build Small Modular Reactors (SMRs) in India, indicating a shift in nuclear policy.
• The Government of India set up task forces to address issues with CLNDA and AEA, although progress has been slow.
• The Joe Biden administration lifted restrictions on Indian entities, facilitating further nuclear cooperation.

Future Considerations

• Amending the AEA involves complex issues like government ownership, control over fuel and waste, and safety regulations.
• Strategic implications of privatizing Fast Breeder Reactors (FBRs) need careful evaluation.
• India aims to reapply for NSG membership while shedding some of its liability burdens.

In conclusion, India's journey in nuclear energy policy reflects a mix of historical baggage, current strategic needs, and future challenges, requiring careful navigation to ensure sustainable and secure energy development.