The proposed amendments aim to cap the liability of suppliers to the value of their contracts and introduce a time limit for claims. This move aligns India's laws with international norms, where the responsibility for operational safety primarily rests with the plant operator rather than the supplier. The changes are part of Prime Minister Narendra Modi's broader plan to expand India's nuclear power capacity to 100 gigawatts by 2047, a significant increase from the current capacity.
This legislative shift is also expected to facilitate trade negotiations with the U.S., aiming to boost bilateral trade from $191 billion to $500 billion by 2030. The original liability law, influenced by the 1984 Bhopal gas disaster, has hindered Western participation and disadvantaged U.S. firms compared to Russian and French competitors. The draft also proposes a lower liability cap for small reactor operators.
Major Indian companies like Reliance, Tata Power, Adani Power, and Vedanta are in talks to invest around $5.14 billion each in the nuclear sector. The government expects parliamentary approval during the July monsoon session. This move is anticipated to unlock stalled nuclear projects and position India as a significant player in the global nuclear energy market.
The amendments are also expected to encourage the development of Small Modular Reactors (SMRs), which are seen as a key component in India's strategy to achieve net-zero carbon emissions by 2070. The government has proposed a Nuclear Energy Mission with a budget of 200 billion rupees, focusing on installing at least five indigenously developed SMRs by 2033.
In summary, the proposed amendments to India's nuclear liability laws represent a significant policy shift aimed at attracting foreign investment, unlocking stalled projects, and expanding the country's nuclear energy capacity. This move aligns with India's broader goals of energy security, economic growth, and environmental sustainability.