Legislative Amendments in India's Atomic Energy Sector
The Indian government is making significant legislative changes to two critical laws governing the atomic energy sector. This move aims to align with global legal standards, address investor concerns, and open India's civil nuclear sector.
Changes to the Civil Liability for Nuclear Damage Act, 2010 (CLNDA)
- The CLNDA is designed to compensate victims of nuclear accidents, allocate liability, and outline compensation procedures.
- Foreign equipment vendors, like Westinghouse Electric and Framatome, view the law as an obstacle, citing the operator's "right of recourse" provision.
- About 11 legal amendments are planned, with two key changes:
- Amend Section 17(b) to align with international standards, mitigating foreign vendors' concerns about broad liability.
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- Clarify the definition of "supplier" to distinguish between primary suppliers and sub-suppliers.
- Deliberations are also ongoing to cap equipment vendors' liability to the original contract value and set a time limit on liability.
Opening Up to Private and Foreign Players
- Amendments aim to enable private companies and potentially foreign companies to operate nuclear power plants in India.
- This move aligns with leveraging the Indo-US civil nuclear deal's commercial potential.
- New Delhi is packaging these changes as part of broader trade negotiations with Washington DC.
Amendments to the Atomic Energy Act, 1962
- The amendments will allow private and potentially foreign players to enter nuclear generation, currently restricted to state-owned entities like NPCIL and NTPC Ltd.
- The government has committed to passing these legislative changes.
Alignment with International Conventions
- Amendments aim to align India’s nuclear liability framework with the 1997 Convention on Supplementary Compensation for Nuclear Damage (CSC).
- India signed the CSC based on its national law, the CLNDA, in 2010 and ratified it in 2016.
Clarification of Supplier Definition
- Proposed amendments will clarify Rule 24 of the CLND Rules defining "supplier," addressing whether it includes foreign and small domestic vendors.
Regulatory Hurdles and US-India Nuclear Collaboration
- The US Department of Energy (DoE) cleared Holtec International for transferring small modular reactor technology to Indian partners.
- This regulatory clearance, known as '10CFR810' authorisation, was a significant hurdle in Indo-US nuclear collaboration.
The legislative changes are crucial for economic reasons, and the government is working to build political consensus to enact these amendments.