Centre may consider amendments to Atomic Energy Act, Civil Liability for Nuclear Damage Act as promised by Finance Minister while announcing nuclear energy mission; could remove hurdles for private investment
The Union government may consider legislation to amend aspects of the Atomic Energy Act and the Civil Liability for Nuclear Damage Act in the upcoming Monsoon Session of Parliament, Minister of State for Atomic Energy Jitendra Singh said on Wednesday (June 18, 2025). If passed, such amendments could help kickstart private investment in nuclear energy.
Finance Minister Nirmala Sitharaman, while presenting the Union Budget earlier this year, had announced a “mission” for nuclear energy, involving the private sector in the construction and development of nuclear reactors. She had said that “amendments” to these two Acts would be “taken up” in this regard.
Responding to a query from The Hindu on significant Bills expected in the Monsoon Session, Dr. Singh said that legislation to amend these two Acts was likely. “We may consider bringing in these [amendment] Bills,” he indicated.
Significant hurdles
Despite the 2008 India-U.S. nuclear deal signed by then-Prime Minister Manmohan Singh and U.S. President George W. Bush, there has been almost no progress on bringing nuclear reactors to India. A key reason for this is the Civil Liability for Nuclear Damage Act, which exposes makers of nuclear power plant equipment to almost unlimited monetary liabilities in India, in the event of a nuclear accident. The Atomic Energy Act, on the other hand, does not allow private companies to run nuclear power plants in the country, and also disallows foreign investment in Indian plants.
Given India’s commitment to be net-zero in terms of greenhouse gas emissions by 2070 and its ambition to become a ‘developed’ country by 2047, energy sufficiency is a critical pillar of its policy. The government aspires to boost India’s nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32. It expects to scale nuclear power to 100 GW by 2047.
Government monopoly
Despite sustained investments since 1947, nuclear power has failed to significantly contribute to India’s energy mix and accounts for only 1.6% of power generation. While there are a range of other reasons — public fears about the safety of nuclear plants, its historical links to nuclear weapons, insufficient nuclear fuel, and the high capital costs of developing new plants — a government monopoly on these plants has also stymied development.
In February, Ms. Sitharaman had announced a ₹20,000 crore Nuclear Energy Mission to develop indigenous Small Modular Reactors (SMRs). The Budget proposed that at least five of these reactors will be operationalised by 2033.
Source: The Hindu
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