Amending CLNDA: India’s Gateway to Nuclear Expansion

Ahead of Prime Minister Narendra Modi’s visit to the U.S. and France (February 10-13, 2025), India has announced plans to amend the Civil Liability for Nuclear Damage Act (CLNDA) and the Atomic Energy Act. The amendments aim to resolve long-standing concerns of foreign nuclear companies, facilitating investment and the execution of stalled projects like Electricité de France (EDF) – Six EPR1650 reactors in Maharashtra (Jaitapur), Westinghouse Electric Company – Six AP1000 reactors in Andhra Pradesh (Kovvada) and Expansion into Small Modular Reactor (SMR) technology for future nuclear projects.

The proposed changes mark a shift from the government’s earlier stance of not amending the Act and are expected to help India meet its ambitious 100 GW nuclear power capacity target by 2047.

Reasons for Amending India’s Nuclear Liability Law

1. Addressing Foreign Companies Concerns

• Western nuclear companies fear high financial risks due to India’s supplier liability clause in CLNDA (2010).
• The global Convention for Supplementary Compensation for Nuclear Damage (CSC) primarily holds operators liable, not suppliers.
• The existing law was shaped by disasters like Bhopal Gas Tragedy (1984) and Fukushima Nuclear Leak (2011) but discourages foreign investment.

2. Expanding India’s Nuclear Energy Capacity

• India’s nuclear capacity stands at 6,780 MW with 22 reactors, with Russia’s Rosatom as the only foreign partner.
• 2025 Budget allocated ₹20,000 crore for nuclear development, targeting 100 GW by 2047.
• Plan to develop five Small Modular Reactors (SMRs) by 2033.

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3. Strengthening Strategic Ties with U.S. & France

• The U.S.-India Civil Nuclear Agreement (2008) remains largely unimplemented due to liability concerns.
• France’s EDF project in Jaitapur has faced years of delays.
• Modi’s visit aims to finalize nuclear deals and boost clean energy collaboration.

Challenges in Amending CLDNA

1. Domestic Political Opposition

• 2010 CLNDA was passed after strong debates, ensuring foreign companies are liable in nuclear accidents.
• Weakening supplier liability could face backlash from opposition parties and civil society groups.

2. Legal & Regulatory Uncertainty

• Experts advocate aligning CLNDA with international norms, but details on amendments remain undisclosed.

3. Investor Confidence & Insurance Issues

• India created a ₹1,500 crore nuclear insurance pool (2019), but it failed to attract major investors.
• Amendments must provide a clear compensation framework to assure both suppliers and operators.

Potential Global & Economic Impact

1. Unlocking Stalled Nuclear Projects

• Amendments could fast-track Westinghouse’s AP1000 reactors and EDF’s Jaitapur project, enhancing India’s nuclear capacity.

2. Strengthening India’s Role in Global Nuclear Energy

• Collaboration with U.S. & France can help India develop cost-effective, modular nuclear technologies.

3. U.S. & France’s Strategic Interests

• U.S. sees nuclear exports as part of its trade and strategic goals.
• France, a global leader in nuclear energy, views India as a key market for its reactor technology.