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India Moves to Finalize Overhaul of Nuclear Liability and Atomic Energy Laws

Finalizing liability caps to match global standards, government agencies aim to unlock private investment from Indian firms alongside foreign partnerships in nuclear power.

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Overview

  • Expert committees from the Department of Atomic Energy, AERB, NITI Aayog, Ministry of External Affairs and Law Ministry are concluding drafting of about 11 amendments to the Civil Liability for Nuclear Damage Act and Atomic Energy Act.
  • A key proposal would dilute Section 17(b) to limit operators’ right of recourse against suppliers and align India’s liability framework with the 1997 Convention on Supplementary Compensation.
  • Draft revisions also clarify the definition of “supplier,” cap vendor liability by contract value and set time limits on recourse to address concerns of equipment makers.
  • The Union Budget 2025–26 allocated ₹20,000 crore to a Nuclear Energy Mission aimed at commissioning five small modular reactors by 2033.
  • The government plans to introduce the amendment bills in the upcoming monsoon parliamentary session, though tight timelines may delay their formal tabling.