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Serving foreign capital? Reintroduction of India's nuclear energy law

By Rajkumar Sinha*  
In 2010, the United Progressive Alliance government under Dr. Manmohan Singh introduced the nuclear energy law, which caused significant upheaval. This law, allegedly drafted at the instigation of American industrial groups, exempted the profit-making manufacturing company from all responsibility in the event of an accident. Due to strong opposition at the time, this law was softened, but it is now being reintroduced. 
What are its implications? 
The Indian government is going to amend nuclear energy acts in the upcoming session of Parliament. This move to "permit private operators and limit their liability" to promote nuclear energy comes after the decision to allow American companies to build and design nuclear equipment in India. The "Civil Liability for Nuclear Damage Act 2010," enacted by the Congress-led United Progressive Alliance (UPA) government for this purpose, had terms that protected the citizens of the country and held companies accountable. Similarly, there is another law, the "Atomic Energy Act 1962," under which the central government develops and operates "nuclear power centers."
Then-Prime Minister Dr. Manmohan Singh wanted to pass the nuclear liability bill in Parliament as soon as possible, but due to opposition from political parties and other civil organizations inside and outside Parliament, and the instability of his government, he had to withdraw it. According to this bill, the supplier was exempt from any compensation in the event of a nuclear power plant accident. Later, after changes were made to the bill in accordance with the demands of opposition parties, the "Civil Liability for Nuclear Damage Act 2010" was passed by Parliament.
Currently, this act allows domestic private companies to participate in the energy sector, but a government committee formed by NITI Aayog has recommended lifting the ban on foreign investment in the nuclear energy sector. The committee has also recommended changes to the "Foreign Investment Acts" along with the act to include foreign companies in nuclear energy production.
It is worth noting that the 2008 agreement between India and the United States for civil nuclear cooperation allowed the import of nuclear technology materials and opened the way for private companies to enter the Indian nuclear market. This agreement was made under "Section 123" of the US "Atomic Energy Act 1954," which was called the "123 Agreement." This agreement raised serious questions across the country.
The indication of the proposed changes was evident during the bilateral talks between India and US defense and foreign ministers in Washington in 2022, when an American company expressed interest in investing approximately 10,000 crore rupees in the development of "Small Modular Nuclear Reactors" (SMRs) for India's domestic use and export, and in setting up six nuclear reactors in India at a cost of 60,000 crore rupees. SMRs are nuclear reactors that produce only 10 to 300 megawatts of electricity. Due to their modular design and small size, multiple units can be installed at the same site as needed. At that time, talks between the Nuclear Power Corporation of India and Washington Electric Company were in the final stages in 2022 regarding this.
India may gradually allow up to 49% Foreign Direct Investment (FDI) in nuclear energy. The government may initially allow only up to 26% and increase it after review. The central government plans to open up the private sector to increase nuclear energy from the current 8 gigawatts to 40 gigawatts by 2035. Former Government of India Secretary E.A.S. Sarma has reiterated his appeal to Prime Minister Narendra Modi not to succumb to pressure from the United States and other nuclear supplier countries to weaken India's existing laws, as indicated by the Finance Minister in this year's budget speech.
The question arises: Why do companies investing in the nuclear sector want to come to India? In fact, there is a severe downturn in the nuclear power industry these days, which is why companies from countries like the US, France, and Russia are eager to secure contracts and orders in India. The "World Nuclear Industry Status Report" released in 2017 stated that the number of nuclear reactors under construction worldwide had declined in the previous four years. Globally, 68 reactors were under construction until 2013, while in 2017, the number of reactors under construction had dropped to 53.
Victims of the Bhopal Gas Tragedy are still fighting for justice. In such a scenario, by exempting foreign companies from strict laws, we are playing with the lives of our citizens. This exemption for American nuclear companies could be very costly for India. How can nuclear companies that earn huge profits from investing in India be exempted from their liabilities? Do business in India, take the profits to America, and if anything goes wrong, wash your hands of it. The company will file counter-lawsuits against those who ask questions because our law is being prepared to suit them.
Large budgetary allocations for the privatization of the nuclear sector and for the research and development of SMRs are a step towards nuclear expansionism. An SMR, over its projected 60-year lifespan, will generate approximately 1,800 tons of "spent fuel" as waste. The chosen site will need to make provisions for the safe storage of "spent fuel" for a very long period. Legal provisions must ensure that sites owned by private parties remain under regulatory control.
Will including the requirements for spent fuel and radioactive waste management early in the design and licensing processes ensure a definite pathway for the disposal of all waste? Therefore, for the large-scale production of SMRs, there will be an extreme need for regulatory oversight and control at all stages of production and module assembly, and for start-up and operation, to ensure compliance with production and safety standards.
The central government has allocated 20,000 crore rupees in the 2025-26 budget for the "Atomic Energy Mission." This amount has been allocated for the research and development of SMRs. The goal is to develop at least five indigenous SMRs by 2033. The government should understand the long-term adverse effects of nuclear radiation and instead prioritize "non-nuclear renewable energy" production that is decentralized, has minimal ecological impacts, and upholds the principles of social equity and financial stability.
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*Social activist 

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