By Betzy Brize | April 18, 2025 | New Delhi
India plans to amend its Civil Nuclear Liability Law to attract foreign players, boost clean energy, and strengthen strategic trade ties with the U.S.
India’s Nuclear Gamble: Reforming Law to Unlock Investment
India is taking a bold step toward transforming its energy future. The government is preparing to amend its Civil Nuclear Liability Act of 2010, removing key hurdles that have blocked global nuclear suppliers for over a decade.
The draft law, prepared by the Department of Atomic Energy, caps the legal liability of nuclear equipment suppliers in the event of an accident and limits how long they can be held responsible—aligning with global norms.
For foreign companies like General Electric and Westinghouse Electric, this could finally offer the legal clarity and protection they’ve waited for.
“India needs nuclear power, which is clean and essential,” said Debasish Mishra, Chief Growth Officer at Deloitte South Asia. “A liability cap will allay the major concern of the suppliers of nuclear reactors.”
From Bhopal to Today: A Legacy Law Gets an Update
India’s current nuclear liability law grew out of the 1984 Bhopal gas disaster, the deadliest industrial accident in history. Fearing future tragedies, India adopted a strict liability clause in 2010, allowing plant operators to sue suppliers if accidents occurred—even years later.
But this unlimited liability clause scared off international suppliers, making India one of the few countries where companies face such long-term exposure.
Now, the proposed changes will:
• Cap liability at the value of the contract
• Limit the timeframe for claims (to be set in contract)
• Shift accident liability mainly to the plant operator, such as NPCIL
These reforms would align India’s nuclear policy with international norms followed by the U.S., U.K., and France.
Why Now? Clean Energy and U.S. Trade
This legal shift comes at a critical moment. India has pledged to ramp up its nuclear power capacity from 7 GW to 100 GW by 2047 as part of its clean energy goals. Nuclear energy is essential to reduce dependence on coal and meet climate targets.
It also supports India’s economic and geopolitical strategy. The move could help revive long-stalled nuclear cooperation with the U.S. and push forward a trade deal targeting $500 billion in bilateral trade by 2030 (up from $191 billion in 2023).
Parliament Push: Monsoon Session Targeted
According to sources, Prime Minister Modi’s government is confident of pushing the bill through during the Monsoon Session of Parliament in July 2025.
The proposed reform is expected to receive support from the business community, but opposition voices may raise concerns about safety, transparency, and corporate accountability.
Explained: What the New Law Will Change
| Current Law | Proposed Amendment |
| Suppliers liable for accidents—even years later | Liability capped at contract value |
| No time limit for compensation claims | Time-bound claims (defined in contract) |
| Supplier bears risk | Operator assumes primary responsibility |
The Bigger Picture
India’s nuclear policy reform is more than a legal update—it’s a statement of intent. A statement that says India is open to investment, serious about clean energy, and ready to shape a global future alongside its strategic partners.
If passed, this law could spark long-awaited nuclear deals, unlock critical infrastructure funding, and push India closer to its 2047 energy goals.
Credit:
This report includes information originally reported by Reuters.
