India Plans to Ease Nuclear Liability Laws to Attract Foreign Investment
Date: 18-apr-2025
Photo by Lukáš Lehotský on Unsplash
India is preparing a major amendment to its 2010 Civil Nuclear Liability Damage Act in a bid to attract global nuclear equipment suppliers and accelerate the country's nuclear energy ambitions. The proposed changes are designed to align India’s laws with international standards and remove long-standing barriers that have discouraged foreign firms from participating in Indian nuclear projects.
What the Amendment Entails
The amendment would limit the legal liability of nuclear equipment suppliers in the event of an accident. Under the revised terms:
- Plant operators—not equipment suppliers—would bear primary responsibility for operational safety.
- Compensation claims from operators against suppliers would be capped at the value of the contract.
- A time limit would be imposed for filing liability claims.
This brings Indian legislation more in line with global nuclear conventions and reduces the legal risk exposure for international suppliers.
Why the Change Matters
Foreign companies—particularly from the U.S., including General Electric and Westinghouse Electric—have historically steered clear of the Indian nuclear energy sector due to fears of unlimited liability under Indian law. The proposed reform is expected to clear the way for their participation in upcoming projects.
“This move reflects India’s maturity in embracing global best practices in nuclear energy governance,” said an official from the Ministry of External Affairs.
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Part of a Bigger Vision
The policy change is a key step in Prime Minister Narendra Modi’s plan to ramp up India’s nuclear power capacity to 100 gigawatts by 2047. India currently generates less than 7 GW from nuclear sources, leaving enormous room for expansion.
Furthermore, the shift in policy comes at a strategic moment. India and the United States are currently in advanced discussions to boost bilateral trade from $191 billion to $500 billion by 2030. The nuclear sector is expected to be a cornerstone of this economic partnership.
Global and Domestic Impact
The proposed amendment could:
- Unlock billions of dollars in foreign investment for India’s clean energy sector
- Reduce dependence on fossil fuels, aligning with climate goals
- Stimulate domestic infrastructure and technology development
The Indian government is expected to introduce the amendment in the upcoming parliamentary session. Industry observers and energy analysts are optimistic that the reforms will transform India’s energy landscape and fortify international trade ties, especially with Western nuclear players.
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