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The government will allow private companies to operate in the nuclear energy sector; more research will follow

During the upcoming monsoon session of Parliament, the government is anticipated to propose two significant changes to the laws governing the country's atomic energy industry

Deeksha Upadhyay 20 May 2025 13:32

The government will allow private companies to operate in the nuclear energy sector; more research will follow

Ongoing Legal Changes

Alleviating Nuclear Liability Legislation (Civil Liability for Nuclear Damage Act, 2010): Its aim is to restrict the liability of equipment suppliers in the event of a nuclear incident. Main Suggested Modifications:

Monetary Limit: Responsibility might be restricted to the initial contract amount.

Time Limit: Establish a statute of limitations regarding the duration of liability.

Amendment to the Atomic Energy Act of 1962: Its aim is to enable private and international entities to participate in nuclear power production.

Present Limitation: Only government-owned companies such as NPCIL and NTPC Ltd are permitted to run nuclear facilities.

Suggested Modification: Allow minority equity involvement by foreign/private organizations in future projects.

Requirement for the Modifications

NPCIL: The Atomic Energy Act of 1962 regulates India's nuclear industry, permitting only government-owned organizations like NPCIL to produce and provide nuclear power.

So far, the private sector has not participated in India's nuclear power industry.

International firms such as GE-Hitachi, Westinghouse, and Framatome have steered clear of India because of worries regarding open-ended liability.

It is essential to modify this in order to draw foreign investment and technology.

These actions seek to unleash the potential of the Indo-US Civil Nuclear Agreement, which was signed almost twenty years ago.

India aims to present these reforms as a component of a broader trade and investment strategy with the U.S., which could result in a trade agreement.

Recent Advancement in U.S. Regulations

Recently, the U.S. Department of Energy issued Holtec International a specific authorization (SA IN2023-001) in accordance with 10CFR810.

Implication: Holtec is now able to share unclassified SMR technology with Indian collaborators such as Tata Consulting Engineers and L&T.

This paves the way for the design and production of small modular reactors (SMRs) in India.

Importance: Enables India to collaboratively develop and produce nuclear components internally.

India's Requirement to Expand its Nuclear Capability:

Nuclear Capacity: India aims to raise its nuclear power capacity from 8,180 MW now to 22,480 MW by 2031-32 and ultimately reach 100 GW by 2047.

Energy Demand Growth: By 2047, India’s electricity requirement is projected to rise 4-5 times, and nuclear energy will support base-load demand in conjunction with renewables.

India’s Goals: To cut the emission intensity of its GDP by 44% by 2030 compared to the levels in 2005.

To reach a cumulative electric power installed capacity of 50% from non-fossil fuel energy sources by 2030.

Roadmap for 100 GW: A plan is being created in collaboration with stakeholders, and although obstacles are present, reaching the 100 GW goal is considered both challenging and attainable.

Conclusion

These changes indicate a significant transformation in India’s nuclear policy. By tackling legal and regulatory challenges, India is ready to:

  • Open up to foreign investment and cutting-edge technology.
  • Broaden its renewable energy collection by incorporating nuclear power.
  • Strengthen strategic coordination with the U.S. within the civil nuclear framework.

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