Civil Nuclear Liability: Indian Context

Introduction

India’s journey towards expanding its nuclear power sector hinges on a critical piece of legislation: the Civil Liability for Nuclear Damage Act (CLND Act).

This law determines who is responsible—and to what extent—in the event of a nuclear accident. With big ambitions for clean energy and an aim to attract private and foreign participants, India is now actively working on amending this law to address investor concerns and global best practices.

History

The CLND Act was enacted in 2010 as India opened its doors to international civil nuclear cooperation after the historic US-India nuclear deal.

Previously, liability rules were vague and limited, making foreign and private players hesitant to enter the Indian market. The law also lets India comply with international agreements, such as the Convention on Supplementary Compensation for Nuclear Damage (CSC), which standardises global practices around liability, but to which India added its unique stamp with extra clauses.

Key Clauses

• Total Liability: The maximum liability for each nuclear incident is capped at 300 million Special Drawing Rights (IMF currency, roughly ₹3,700 crore)
• Operator’s Liability: Operators (currently public sector only) are liable for up to ₹1,500 crore
• Government’s Role: The central government pays for damages above the operator’s cap.
• Supplier Liability: Uniquely, Section 17 gives the plant operator the right to recourse against suppliers if an accident results from faulty equipment or material, making suppliers potentially liable for huge damages
• Claim Period: Victims have 20 years to claim compensation after a nuclear incident

Amendments Envisaged

In 2025, the government is proposing a major overhaul of the CLND Act to:

• Cap Supplier Liability: Limit or define the extent of supplier liability to encourage private and foreign companies to participate without the risk of open-ended financial exposure
• Enable Private Sector Entry: Amend the Atomic Energy Act and CLND Act so private (and possibly foreign) operators—not just government entities—can build and run nuclear plants in India
• Align With Global Standards: Bring India’s rules closer to the international CSC framework, boosting confidence among global companies
• Simplify the Legal Framework: Combine scattered atomic energy laws for clarity and ease of doing business, ensuring investor-friendly norms while maintaining victim protection

Conclusion

These changes aim to support India’s ambitious target of achieving 100 GW of nuclear power capacity by 2047, dramatically increasing the role of nuclear energy in India’s clean energy transition.

References:

1. https://economictimes.com/industry/energy/power/nuke-law-recast-expected-to-cap-supplier-liability/articleshow/122423616.cms
2. https://indianexpress.com/article/explained/work-underway-for-changes-in-two-key-laws-can-open-up-civil-nuclear-sector-10096652/
3. https://www.nuclearbusiness-platform.com/media/insights/india-nuclear-energy-budget-2025
4. https://www.insightsonindia.com/2025/06/17/indian-nuclear-liability-law/
5. https://world-nuclear-news.org/Articles/Indian-cabinet-changes-nuclear-liability-bill
6. https://www.brookings.edu/articles/liability-legislation-for-indian-nuclear-energy-business-is-enacted/
7. https://www.timesnownews.com/india/india-goes-big-on-nuclear-govt-to-clear-hurdles-17-years-after-us-deal-amend-liability-laws-article-117872003
8. https://www.reuters.com/world/india/india-plans-ease-nuclear-liability-laws-attract-foreign-firms-sources-say-2025-04-18/
9. https://visionias.in/current-affairs/upsc-daily-news-summary/article/2025-06-30/the-indian-express/geography/opening-up-indias-civil-nuclear-sector-work-underway-for-changes-in-two-key-laws
10. https://www.shankariasparliament.com/current-affairs/gs-i/civil-nuclear-liability-laws-in-india