Operation Sindoor has triggered a debate and talks around India’s nuclear energy sector. Now, there is murmur that in the upcoming Parliament session, the government is likely to move two crucial amendments in the laws that govern India’s atomic energy sector, a report by The Indian Express said citing sources aware of the developments.
Why Letting Private Firms Into Nuclear Energy Is A Game Changer ?
Why In News
- Operation Sindoor has triggered a debate and talks around India’s nuclear energy sector. Now, there is murmur that in the upcoming Parliament session, the government is likely to move two crucial amendments in the laws that govern India’s atomic energy sector, a report by The Indian Express said citing sources aware of the developments.
All You Need To Know
- The report says that the first amendment in the law is about reducing the responsibility of companies that supply equipment for nuclear power plants if in case an accident happens. This means there would be a limit on how much money they have to pay and for how long they would be held responsible — which would possibly only be up to the value of the original contract and for a certain period of time.
- The second amendment is meant to allow private companies to take part in running nuclear power plants in India. This could also open the door for foreign companies to invest small shares in future nuclear projects.
- Until now, India’s nuclear energy sector has been one of the most tightly controlled areas. These two legal changes are being seen as major reforms that could help India make better use of the civil nuclear deal it signed with the United States almost 20 years ago.
- The Indian government also hopes to include these changes as part of a larger effort to boost trade and investment with the US, which may eventually lead to a formal trade agreement that is currently being discussed.
- The report suggests that the Indian government is planning for these two legal changes to remove the bottlenecks that have discouraged foreign investment in the atomic energy sector.
- The first change involves the Civil Liability for Nuclear Damage Act, 2010, which requires equipment suppliers to take responsibility if a nuclear accident happens.
- Foreign companies like GE-Hitachi, Westingtonhouse, and Areva (now Framatome) have suggested that this law makes them hesitant to invest, as they fear being held liable for future accidents. The second change is an update to the Atomic Energy Act, 1962, which currently allows only government-owned companies to run nuclear power plants. The amendment would open the door for private — and possibly foreign — companies to become operators in the future.
- The government has promised to pass both changes, as also mentioned in this year’s Union Budget. However, passing at least one of these bills may be legally challenging and take time.
