India Set to Amend Nuclear Liability Laws to Boost Foreign Investment in Clean Energy

India is preparing to amend its Civil Liability for Nuclear Damage Act, 2010, a move hailed by experts as a major step toward unlocking foreign investment and accelerating the country’s nuclear energy ambitions. The planned amendment will address longstanding concerns over liability burdens placed on nuclear suppliers—concerns that have deterred global companies from entering the Indian civil nuclear market.

A Stumbling Block Since 2010

Under the existing law, nuclear suppliers can be held financially liable in case of an accident, a clause that deviates from international norms. The legislation, introduced after the 1984 Bhopal gas tragedy, was designed to ensure corporate accountability. However, critics argue that it inadvertently stifled the development of India’s nuclear sector by making it financially risky for international players like Westinghouse (U.S.), Rosatom (Russia), and EDF (France).

The Proposed Changes

The proposed amendment is expected to bring Indian law in line with the Convention on Supplementary Compensation for Nuclear Damage (CSC), which limits supplier liability and assigns primary responsibility to plant operators. According to sources within the Department of Atomic Energy, the reform will include establishing a central liability fund and implementing stricter safety standards to offset reduced supplier liability.

Boost to India’s Clean Energy Goals

India currently operates 22 nuclear reactors with a total capacity of around 7 GW and aims to increase this to 22 GW by 2030. With rising energy demands and climate goals looming, nuclear power is seen as a critical piece of India’s low-carbon future.

Foreign investment and technology transfer are essential for achieving these targets. The amendment is expected to revive stalled nuclear projects, such as the Kovvada nuclear plant in Andhra Pradesh and Jaitapur in Maharashtra.

Opposition and Safeguards

The proposed law is likely to meet opposition from environmental groups and some political parties, who argue that reducing supplier liability compromises justice for potential victims. The government has responded by promising tighter regulatory oversight and swift compensation mechanisms.

The amendment is expected to be tabled during the Monsoon Session of Parliament. If passed, it will mark a significant policy shift, balancing investor confidence with public safety in pursuit of clean energy.