What changes have been made to the proposed Indian civil nuclear law?
India has proposed legislation that would end the state's monopoly on nuclear power after six decades. This law would allow private companies, and even individuals?to build and run reactors.
The bill must be passed by both the lower and upper chambers of parliament before it becomes law.
What you should know:
What is the civil nuclear law?
Nuclear projects have been restricted since 1962 to companies under the Department of Atomic Energy. This includes Nuclear Power Corporation of India. In 2015, a new amendment was passed that allowed state-run companies and NPCIL to form joint ventures to develop plants. Since then, NPCIL has teamed with three state run companies NTPC IOC NALCO. However, none of these ventures have completed their planned plants.
What are the proposed changes?
The Sustainable Harnessing of Nuclear Energy for Transforming the India Bill 2025 ends government monopoly and allows private players to own and operate nuclear power plants. The government will continue to control sensitive activities like fuel enrichment, spent fuel reprocessing, and heavy water production.
Why is it a big deal?
India wants to increase its nuclear power to 100 gigawatts from the current 8.2 GW in 20 years, making atomic energy an important part of its clean energy strategy. Private companies like Tata Power, Adani Power, and Reliance Industries, who have stated their intention to invest in nuclear energy, could be attracted by the proposed legislation. Private companies can import and process uranium while foreign firms can partner with Indian companies.
FOREIGN TEAM PARTICIPATION?
The United States' Westinghouse Electric, France's EDF, and Russia's Rosatom, as well as global suppliers such as Westinghouse Electric, GE-Hitachi, and Rosatom, have all expressed an interest in providing technology and equipment to India's nuclear project. The bill proposes joint ventures between Indian firms and foreign direct investors.
HOW HAS IT EASED LIABILITY RULES?
The bill removes a clause which allowed operators to sue equipment providers over defects, a "hurdle" for foreign vendors. This change reduces legal risk for vendors, allows them to offer insurance and attracts global technology and investment.
What are the safety guards?
Operators must have government licenses and safety authorization from the Atomic Energy Regulatory Board. Licenses cannot be held by foreign-controlled companies. Operators are required to set aside a liability fund between $10.99 and $330 millions, depending on the size of their reactor.
WHAT HAPPENS IF AN ACCIDENT OCCURS?
Operators' liability funds will be compensated up to 300 million Special Drawing Rights (an International Monetary Fund Reserve unit) in accordance with global standards.
A nuclear liability fund is set up to cover excessive claims. The government will intervene if the damages exceed this limit.
(source: Reuters)
