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Government plans to amend nuclear liability law in spotlight, as Modi heads to U.S., France

Ahead of Prime Minister Narendra Modi’s visit to Paris and Washington beginning Monday, the government’s announcement that it would amend its Civil Liability for Nuclear Damages Act and the Atomic Energy Act, is likely to enthuse American and French nuclear power companies, whose projects have been deadlocked due to legal worries for more than 15 years.

However, experts who welcomed the decision called for more clarity on the amendments proposed.

The announcement, which marked a sharp u-turn from the government’s position in 2015 was made in the Budget Speech on February 1.

In particular, it could facilitate progress for Electricite de France (EDF) MoU to build six EPR1650 in Maharashtra at Jaitapur that was signed in 2009 (with Areva), and American Westinghouse Electric Company’s (WEC) MoU to build six AP1000 reactors in Andhra Pradesh at Kovvada, signed in 2012.

In addition, it is expected to help India tap into new nuclear power technologies particularly for Small Modular Reactors (SMR), now gaining popularity in developed economies.

Thus far, western international nuclear power companies have said that clauses in the CLNDA (2010 law) are unacceptable, mandate a high degree of liability for suppliers on nuclear power components, and contradict the international Convention for Supplementary Compensation for Nuclear Damage (CSC), that focuses only on the immediate liability of operators.