Latest news with #CivilLiabilityforNuclearDamageAct
Hindustan Times
5 days ago
- Business
- Hindustan Times
A new legal architecture for nuclear power sector
Prime Minister (PM) Narendra Modi's new emphasis on nuclear power is in line with renewed global interest in this clean and stable source of electricity, which also supports India's quest for energy sovereignty, independence and security. According to the International Energy Agency (IEA), demand for electricity is growing at twice the rate of other forms of energy — and six times faster in the developing world — due to urbanisation, prosperity, transportation, air conditioning and the exponential growth in demand from data centres. Globally, nuclear power contributes to 9% of power generated, second behind hydropower as a source of non-fossil fuel. According to IEA, 63 reactors with a capacity of 70 GW are under construction — 25 are of Chinese design and 23 of Russian design. After decades of standstill, countries like France and the US are resuming capacity addition. There is new excitement on the prospects of Small Modular Reactors (SMRs). SMRs have many advantages — shorter construction time, lower risk of cost and time overruns, better grid stability, manageable project costs, a payback period of 10-15 years, which is half that of large nuclear reactors, and amenability to project financing and refinancing. The US and China lead SMR development, with technology expected to mature by early 2030s. India is an early starter with high competence in all aspects of nuclear energy. However, growth, driven by indigenised technology and public monopoly, is sluggish. Nuclear power accounts for only 3% of electricity generated in India. The target set in 2007 for 63,000 MWe by 2032 has been replaced by the target of 100,000 MWe by 2047. That goal is unattainable in the current institutional and regulatory environment. The NSG exemption in 2008 and bilateral agreements opened access to international uranium sources, but progress on international nuclear technology and reactors to supplement domestic ones have been hampered by regulatory issues, especially the Civil Liability for Nuclear Damage Act (CLNDA) 2010, which has also led domestic suppliers to seek indemnities from the operator, NPCIL. The government's intention to amend the Atomic Energy Act 1962 (AEA) and the CLNDA are timely and welcome. Comprehensive and unambiguous legislative changes can open up additional sources of investment in a highly capital-intensive sector, create a broader pool of developers and operators and accelerate industrialisation. Foreign participation can go beyond equipment supplies. The distributed market structure and wider industrial base associated with SMRs, in particular, require legal and regulatory changes. India's nuclear liability regime diverges significantly from international norms, particularly the Convention on Supplementary Compensation for Nuclear Damage (CSC). The CLNDA, a well-meaning law intended to protect victims, has ended up discouraging supplier engagement. Neither the CLNDA rules, whose provisions on capping liability could be struck down as excessive delegation, nor the clarifications and assurances offered by the government through FAQs, which are not legally binding, have assured foreign or domestic suppliers. A comprehensive amendment, rather than piecemeal fixes, is required. The amendment could either delete Section 17(b) to remove fault-based supplier liability, in line with CSC, or incorporate the relevant provisions of the CLND rules and FAQs to provide statutory caps on liability and claims periods. In addition, Section 46 would have to be amended to clearly bar all civil liability claims outside the CLNDA framework, while preserving the application of criminal liability. Amendments to Sections 5 and 9 would clarify that claims may only be made in accordance with CLNDA. The clarification in FAQ that the primary reactor vendor or technology provider would be deemed to be the supplier needs to be incorporated. Complex decisions will be required to determine activities to be opened to the private sector in nuclear power as well as the level of private ownership and foreign shareholding, if any. The simplest proposition is for NPCIL or a government company to build, operate and control plants funded by the private sector; or, outsource the construction of reactors and power plants to the private sector, with status quo in every other aspect. However, the latter should be permitted to invest in, own and operate nuclear power plants, including reactors and power plants, under a strict licensing regime that addresses national security, proliferation and safety concerns, oversight needs and international obligations. Indian companies could be allowed full ownership and foreign ones up to 49%. For both large and SMR reactors, we would need standardisation, industrialisation and economies of scale. At the initial stages at least, the government will have to retain full control of the complete nuclear fuel cycle. Globally, too, there are few actors involved in this process. There would, thus, be a separation between ownership and management of nuclear power plants, on the one hand, and of the fuel cycle on the other. Nuclear power generators would be treated on par with other power companies with administrative supervision by the ministry of power, while control of the nuclear fuel cycle would rest with the department of atomic energy. This framework would entail amending Section 3 of the AEA to redefine atomic energy activities as universally licensable, allowing private companies to participate under central government oversight; amending Section 14 to allow up to 100% private ownership, including by companies with foreign investment, subject to security clearance; reforming Section 20 to permit intellectual property ownership for civilian nuclear research and development. Indian and other startups developing SMRs, for instance, should be allowed to retain and commercialise their technology; and, reforming Section 22 to place the regulation of electricity tariffs and trading under the Electricity Regulatory Commissions governed by the Electricity Act, 2003. Further, permitting foreign investment would require amendments to FEMA and FDI policy and rules. Private sector entry and large-scale deployment of SMRs would need a more independent and empowered AERB. Assured availability of human resources, finance, and fuel will be essential for growth. India's private sector and startup community can meet the stringent requirements of the nuclear power sector through research, innovation, advanced engineering, investments and responsible and safe project management. Comprehensive and clear reforms will unlock foreign capital and participation. Nuclear power will have to be an integral component of an energy strategy needed to achieve the goal of Viksit Bharat while ensuring clean energy transition and energy access and equity for all. Akshay Jaitly is a founding partner of Trilegal and Jawed Ashraf is a retired Indian ambassador. The views expressed are personal. Get 360° coverage—from daily headlines to 100 year archives.
Indian Express
26-05-2025
- Business
- Indian Express
Nuclear energy push needs to be accompanied by human capital surge
Written by Saurabh Todi The Union government is expected to introduce amendments to the nuclear liability law and the Atomic Energy Act in the upcoming monsoon session of parliament. This would be the first step towards delivering on the two significant commitments regarding the nuclear energy sector made in the Union Budget earlier this year. Reports suggest that the amendments to the Civil Liability for Nuclear Damage Act, 2010, would effectively cap the liability of equipment vendors in the event of an accident, both in terms of limiting the monetary exposure to the original value of the contract. A time frame limitation on the applicability of this liability is also being proposed. Furthermore, amendments to the Atomic Energy Act are expected to enable private companies to enter the nuclear power industry as nuclear plant operators, possibly also allowing foreign companies to take minority equity stakes in nuclear power projects. These moves signal serious intent on the part of the government to deregulate the nuclear energy sector. Given the contentious nature of these amendments, especially relating to the nuclear liability law, they are bound to generate significant public debate. Therefore, it is prudent to reserve a substantial chunk of analysis on the impact of these amendments until the actual drafts are available for public scrutiny. However, there is little doubt that the sector is gearing up for reform. Therefore, sustained and focused efforts must be made to ensure that the Indian industry, academia and public are well prepared to materialise India's nuclear ambitions. In anticipation of the impending reforms and following the announcement of the National Nuclear Energy Mission, the Indian private sector is stepping up with significant investments and ambitious commitments towards the Indian nuclear energy sector. Interestingly, US regulators have granted regulatory approval to a US company to share small modular reactor (SMR) technology with Indian private players. India's earlier effort to diversify the nuclear energy sector has also seen some success. India's atomic energy regulator recently consented to four Indian-designed 700 MWe pressurised heavy water reactors (PHWRs) at Banswara, Rajasthan. This nuclear plant would be developed by Anushakti Vidhyut Nigam Ltd (Ashvini), which was incorporated as a 51:49 JV (joint venture) between the Nuclear Power Corporation of India (NPCIL) and the National Thermal Power Corporation (NTPC) following the 2015 amendment to the Atomic Energy Act that allowed PSUs to set up nuclear power projects jointly with NPCIL. While efforts are being made to reform the nuclear energy sector and accelerate the construction of nuclear reactors, attention must be paid to building capacity and capability in allied sectors and domains, both upstream and downstream of the nuclear energy sector. To increase the nuclear energy capacity tenfold by 2047, India will need not just reactors but a huge pipeline of skilled professionals: Construction workers, nuclear engineers, inspectors, regulators, and researchers. India's current capacity to train and supply such specialised manpower is limited, and a significant push is needed to prevent shortages from becoming a serious bottleneck in a few years. Therefore, human resource development related to the nuclear energy sector must be prioritised. This can be achieved through focusing on two major aspects. First, incentives need to be provided to encourage students to enrol in specialised nuclear engineering and nuclear science programs. Currently, only a handful of universities in India offer these degrees. The University Grants Commission and the Department of Atomic Energy should cooperate to expand the availability of these degrees that can help train the skilled manpower needed to fuel India's nuclear ambitions. Second, there is a significant need to upgrade the existing infrastructure in colleges and universities to support and meet the increased demand. The Anusandhan National Research Foundation (ANRF) has the mandate and financial resources to address this bottleneck. Furthermore, given the private sector's interest and possible foreign participation, the scope for public-private partnership through the ANRF in the nuclear energy sector is immense. Finally, public perception and safety are significant considerations for the nuclear energy sector, much more than other energy sources. As India seeks to expand the adoption of nuclear energy, efforts must also be made to sensitise the public about its benefits, the safety record of Indian nuclear plants, and advancements in reactor design to minimise proliferation risks. Reforming the Atomic Energy Regulatory Board (AERB) to make it an independent regulatory body would also be a notable step in this direction. The potential of nuclear energy in India largely depends on the extent to which the sector is deregulated and opened to private and foreign participation. While the proposed amendments are necessary, they are not sufficient. Realising India's nuclear ambitions will require sustained, focused efforts. The writer is a researcher associated with the Takshashila Institution, a policy think tank based in Bengaluru
Time of India
21-05-2025
- Business
- Time of India
India may allow up to 49% foreign direct investment in nuclear energy in phases
New Delhi: India could allow up to 49 per cent foreign direct investment in nuclear energy , but the cap would be relaxed only in phases. "We are open to allowing foreign investment... We can even go up to 49 per cent , but in tranches," a senior government official told ET. The government could in the initial phase only allow up to 26 per cent and raise it later after a review. ET had reported earlier that the proposed framework is also likely to stipulate majority ownership by the Indian partner in the venture. New Delhi plans to open up the strategic sector to private sector looking to increase its nuclear energy to 40 GW by 2035 from 8 GW now. The sector is not open to private participation, and it remains in the negative list for foreign direct investment. Finance minister Nirmala Sitharaman in her February budget said that government would amend the Atomic Energy Act and Civil Liability for Nuclear Damage Act, which will facilitate the entry of private players into the sector. "Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up," she had said. She also said a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of ₹20,000 crore will be set up. At least five indigenously developed SMRs will be operationalised by 2033. The official said changes to the Acts are being firmed up and discussions are on with stakeholders. The government had set up committees comprising senior officials to finalise the changes to these Acts and the process is on, the official added. Foreign companies have shown interest in India's upcoming nuclear units, as per industry experts. Russian nuclear firm Rosatom has offered India the expertise to build small modular reactors (SMRs), apart from French state-owned firm EDF, an ET report had said in February. The government is also firming up the roadmap for 100 GW nuclear energy installed capacity by 2047, which will outline all technologies that could be deployed to achieve India's nuclear energy mission.
Time of India
21-05-2025
- Business
- Time of India
Indian nuclear sector opening doors for foreign investors starting with a 26% cap: Report
India is planning a major policy shift by opening up its nuclear energy sector for foreign players, something that had been off limits for a long time. Up to 49% foreign direct investment could be allowed in the nuclear energy landscape, though the liberalisation will be carried out in phases, starting with a 26% cap. This cap may be raised following a review. Additionally, the proposed framework will likely mandate majority ownership by the Indian partner in the venture. 'We are open to allowing foreign investment... We can even go up to 49%, but in tranches,' a senior government official told ET. At present, the nuclear energy sector currently sits on the negative list for FDI and remains entirely under government control. But with ambitious plans to increase nuclear power generation capacity from the present 8 GW to 40 GW by 2035, the government is preparing the ground for private and foreign participation. Earlier during the February budget, finance minister Nirmala Sitharaman had also announced amending the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These legal changes are crucial to facilitate a larger role for private entities in India's nuclear power programme. 'Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up,' Sitharaman had said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch Bitcoin và Ethereum - Không cần ví! IC Markets BẮT ĐẦU NGAY Undo She also announced a Rs 20,000 crore outlay for a Nuclear Energy Mission, focused on research and development of Small Modular Reactors (SMRs). The government aims to operationalise at least five indigenous SMRs by 2033. The official said that changes to the Acts are currently being finalised, with ongoing discussions involving key stakeholders. Committees made up of senior government officials have been set up to draft and finalise these amendments, and the process is actively underway. Industry interest is already picking up in India's nuclear sector. Russian nuclear agency Rosatom and French state-owned EDF have already expressed readiness to collaborate with India on SMR technology. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
20-05-2025
- Business
- Time of India
India may allow up to 49% foreign direct investment in nuclear energy in phases
New Delhi: India could allow up to 49% foreign direct investment in nuclear energy , but the cap would be relaxed only in phases. "We are open to allowing foreign investment... We can even go up to 49%, but in tranches," a senior government official told ET. The government could in the initial phase only allow up to 26% and raise it later after a review. ET had reported earlier that the proposed framework is also likely to stipulate majority ownership by the Indian partner in the venture. New Delhi plans to open up the strategic sector to private sector looking to increase its nuclear energy to 40 GW by 2035 from 8 GW now. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 Signs That A Heart Attack Is Imminent Learn It Wise Undo The sector is not open to private participation, and it remains in the negative list for foreign direct investment. Live Events Finance minister Nirmala Sitharaman in her February budget said that government would amend the Atomic Energy Act and Civil Liability for Nuclear Damage Act, which will facilitate the entry of private players into the sector. "Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up," she had said. She also said a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of ₹20,000 crore will be set up. At least five indigenously developed SMRs will be operationalised by 2033. The official said changes to the Acts are being firmed up and discussions are on with stakeholders. The government had set up committees comprising senior officials to finalise the changes to these Acts and the process is on, the official added. Foreign companies have shown interest in India's upcoming nuclear units, as per industry experts. Russian nuclear firm Rosatom has offered India the expertise to build small modular reactors (SMRs), apart from French state-owned firm EDF, an ET report had said in February. The government is also firming up the roadmap for 100 GW nuclear energy installed capacity by 2047, which will outline all technologies that could be deployed to achieve India's nuclear energy mission.
