Only representative image. File | Photo credit: the Hindu
“Plans are being activated to relieve nuclear responsibility laws to limit sanctions related to accidents in equipment suppliers, in a movement to attract US companies that have been delayed due to the risk of unlimited exposure,” said three government sources.
The proposal of the Government of Prime Minister Narendra Modi is the last step to expand the capacity of nuclear energy production in 12 times to 100 gigawatts by 2047, as well as provide a filling in commercial negotiations and rates with the United States.
DESIGN STAGE OF THE SMALL MODULAR COMPLETED NUCLEAR REACTOR: JITENDRA SINGH
“A bill prepared by the Department of Atomic Energy (DAE) eliminates a key clause in the 2010 Civil Nuclear Responsibility Damage Law that exposes suppliers to unlimited responsibility for accidents,” the sources said.
The DAE, the office of the Prime Minister and the Ministry of Finance did not respond to the requests for comments.
“India needs nuclear energy, which is clean and essential. A liability limit will relieve the main concern of nuclear reactor suppliers,” said DeboSish Mishra, Growth Director of Deloitte South Asia.
The amendments are in line with the international standards that place the operator’s responsibility to maintain security instead of the nuclear reactor supplier.
The union government expects changes to relieve Conerns of US companies mainly as General Electric Co. and Westinghouse Electric Co. that has a leg outdraft during the year due to unlimited risks in case of accidents.
Analysts say that the approval of the amended law is crucial for negotiations between India and the United States for a commercial agreement this year with the aim of raising bilateral trade to $ 500 billion by 2030 from $ 191 billion last year.
“The Modi administration is confident in obtaining an approach for amendments in the Parliament Monzón session, which will begin in July,” according to the sources.
According to the proposed amendments, the right of the operator to the compensation of the supplier in the case of an accident will be limited to the value of the contract. It will also be subject to a period to specify in the contract.
Currently, the law does not define a limit to the amount of compensation that an operator can see of the suppliers and the period for which the supplier can be responsible for the hero.
“The law arose from the Bhopal disaster”
The 2010 nuclear responsibility law arose from the 1984 Bhopal gas disaster, the world’s most fatal industrial accident, in a factory owned by the US multinational union.
Union Carbide agreed to pay an extrajudicial liquidation of $ 470 million in damages in 1989. The Law of Current Effective Responsibility excluded Western companions from a large market, and also struggled for relations between the United States and Indians since it reached a cooperation of agreement in 2008.
He also left American companies at a disadvantage for Russian and French companies whose responsibility for accidents is subscribed by their governments.
“The draft of the law also proposes a lower responsibility limit in small reactor operators at $ 58 million, but it is unlikely to alter the limit for large reactor operators from the current level of $ 175 million,” the three sources said.
The country is betting on nuclear energy to meet its growing energy demand without compromising zero net commitments, so it proposes to allow private Indian companies to build such plants.
The conglomerates such as Reliance Industries, Tata Power, Adani Power and Vedanta Limited have maintained discussions with the government to invest around $ 5.14 billion each in the sector.
Published – April 18, 2025 11:41 am ist
