India's Nuclear Energy Expansion Initiative
To reach India's ambitious goal of achieving 100 gigawatts (Gw) of nuclear energy capacity by 2047, several strategic recommendations have been made by an expert committee under the power ministry.
Supplier Liability and Definition
- The committee suggests capping a supplier's liability at either the contract value or the operator's liability, whichever is lower.
- A precise definition of “supplier” is needed to ensure that vendors providing insignificant items are excluded from undue liability.
Encouraging Private Sector Participation
- The panel's report underscores the reluctance of both domestic and foreign suppliers to engage due to liability concerns, which are typically operator-centric internationally.
- Currently, the Civil Liability for Nuclear Damages (CLND) Act, 2010, does not cap supplier liability, causing apprehension among suppliers.
- Operators are recommended to be shielded from civil liability under laws outside the CLND Act.
Tax and Licensing Recommendations
- The Central Electricity Authority (CEA) suggests lowering the goods and services tax on nuclear projects from 18% to 12%, which could reduce project costs and tariffs.
- The proposal includes allowing any company under the Companies Act, 2013, to get a license for nuclear energy production and use, extending beyond just central public sector undertakings.
Rationale and Government Initiatives
- Private sector participation is encouraged due to their capital resources and efficiency in construction and innovation adoption.
- The government has already taken steps to expand nuclear capacity from the current 8.8 Gw.
- The Budget 2025-26 introduced the Nuclear Energy Mission with a significant outlay of ₹20,000 crore focused on developing small modular reactors.
Key Recommendations Summary
- Clarify the definition of a supplier in nuclear projects.
- Ensure operators have no additional civil liability beyond the CLND Act.
- Allow broader licensing for atomic energy production to companies registered under the Companies Act, 2013.
