India Eyes Nuclear Expansion with Policy Reforms
In a strategic move to expand its nuclear power capabilities, India is planning to ease its civil nuclear liability laws. The proposed reforms aim to limit the liability of equipment suppliers in the event of a nuclear accident, thereby removing a key barrier that has discouraged foreign—especially American—companies from entering the Indian nuclear market.
Target: 100 GW Nuclear Capacity by 2047
The initiative is part of India’s ambitious energy roadmap to increase nuclear power generation capacity twelvefold to 100 gigawatts by 2047, aligning with the country’s clean energy goals. The move also supports Prime Minister Narendra Modi’s vision of strengthening strategic and trade ties with the United States.
Key Clause to Be Removed from 2010 Law
According to government sources, a draft bill prepared by the Department of Atomic Energy seeks to remove a critical clause from the 2010 Civil Liability for Nuclear Damage Act, which currently allows for unlimited liability for nuclear equipment suppliers in case of an accident. This clause has long been seen as a deterrent by international companies.
Positive Signals for U.S. Firms
The proposed changes are aimed at companies such as General Electric and Westinghouse Electric, which have hesitated to engage with India’s nuclear sector due to the uncapped legal risks. By introducing a cap on compensation liabilities, the Indian government hopes to make the sector more attractive for foreign direct investment.
Industry Support and Global Relevance
Debasish Mishra, Chief Growth Officer at Deloitte South Asia, commented, “India needs nuclear energy, which is both clean and essential. Setting a liability cap will address a major concern for nuclear reactor suppliers.”
Boost for India-U.S. Trade Relations
Analysts believe the legal reforms will play a crucial role in upcoming trade negotiations between India and the U.S., with both sides aiming to boost bilateral trade from $191 billion in 2023 to $500 billion by 2030. The nuclear sector is expected to be a vital part of this cooperation.
Parliamentary Approval Expected by July
Sources indicate that the Modi government is confident of passing the amendments in the Monsoon Session of Parliament, starting in July. Under the new framework, the liability of suppliers will be limited to the value of their contract, providing more legal clarity and encouraging new entrants into the nuclear sector.
Conclusion: A Win-Win for Energy and Diplomacy
If passed, the revised law could unlock massive investment opportunities, advance India’s clean energy ambitions, and solidify its global partnerships—particularly with the United States in the high-stakes energy domain.
