India's Nuclear Liability Laws Under Scrutiny Amid US Trade Talks
The proposed amendments to India's nuclear liability laws have sparked concerns about the potential risks and consequences of diluting safety protocols, highlighting the need for a balanced approach that addresses the country's energy needs while prioritizing safety and self-reliance, a crucial aspect of India's negotiations with the US.
A former government official has urged Prime Minister Narendra Modi to maintain the integrity of India's nuclear liability laws, warning that diluting them could compromise national interests and self-reliance in nuclear development, as the country seeks to expand its nuclear power production capacity to 100 gigawatts by 2047, with the US being a key partner in this endeavor.
E A S Sarma, the former official, has expressed concerns that amending the Civil Liability for Nuclear Damage Act, 2010, to cap accident-related penalties on equipment suppliers could incentivize manufacturers to prioritize profits over safety, potentially leading to catastrophic consequences, as seen in the Fukushima nuclear disaster. He argues that the current regulatory framework lacks independence and that strengthening the legislation is essential to hold reactor suppliers accountable for any liability arising from accidents.
India's plans to ease its nuclear liability laws are seen as a crucial step in attracting US firms, which have been hesitant to invest due to the risk of unlimited exposure. The proposed amendments aim to remove a key clause that exposes suppliers to unlimited liability for accidents, capping the right of the operator to compensation from the supplier at the value of the contract, subject to a specified period. This move is intended to facilitate negotiations between India and the US for a trade deal this year.
As India seeks to diversify its energy options to meet growing demands, Small Modular Reactors (SMRs) are being considered as a viable solution. However, Sarma suggests revisiting the idea of relying on imported reactors and fuel, as it could impact India's long-term vision of self-reliance in nuclear power development. The debate surrounding India's nuclear liability laws highlights the delicate balance between attracting foreign investment and ensuring the country's energy security and safety standards.
The outcome of this debate will have significant implications for India's energy future, as the country navigates the complexities of expanding its nuclear power production capacity while maintaining its commitment to self-reliance and safety. As India engages in trade talks with the US, it must carefully consider the potential consequences of diluting its nuclear liability laws and ensure that any amendments prioritize national interests and the well-being of its citizens.