Skip to main content

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

By 
Raj Kumar 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.
---
*Social activist 

Comments

TRENDING

The golden crop: How turmeric is transforming women's lives in tribal India

By Vikas Meshram*   When the lush green fields of turmeric sway in the tribal belt of southern Rajasthan, Madhya Pradesh, and Gujarat, it is not merely a spice crop — it is the golden glow of self-reliance. In villages where even basic spices once had to be bought from the market, the very soil today is yielding a prosperity that has transformed the lives of thousands of families. At the heart of this transformation is the initiative of Vaagdhara, which has linked turmeric with livelihoods, nutrition, and village self-governance — gram swaraj.

Love letters in a lifelong war: Babusha Kohli’s resistance in verse

By Ravi Ranjan*  “War does not determine who is right—only who is left.” Bertrand Russell’s words echo hauntingly in our times, and few contemporary Hindi poets embody this truth as profoundly as Babusha Kohli. Emerging from Jabalpur, Madhya Pradesh, Kohli has carved a unique space in literature by weaving together tenderness, protest, and philosophy across poetry, prose, and cinema. Her work is not merely artistic expression—it is resistance, refuge, and a call for peace.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Authoritarian destruction of the public sphere in Ecuador: Trumpism in action?

By Pilar Troya Fernández  The situation in Ecuador under Daniel Noboa's government is one of authoritarianism advancing on several fronts simultaneously to consolidate neoliberalism and total submission to the US international agenda. These are not isolated measures, but rather a coordinated strategy that combines job insecurity, the dismantling of the welfare state, unrestricted access to mining, the continuation of oil exploitation without environmental considerations, the centralization of power through the financial suffocation of local governments, and the systematic criminalization of all forms of opposition and popular organization.

Echoes of Vietnam and Chile: The devastating cost of the I-A Axis in Iran

​ By Ram Puniyani  ​The recent joint military actions by Israel and the United States against Iran have been devastating. Like all wars, this conflict is brutal to its core, leaving a trail of human suffering in its wake. The stated pretext for this aggression—the brutality of the Ayatollah Khamenei regime and its nuclear ambitions—clashes sharply with the reality of the diplomatic landscape. Iran had expressed a willingness to remain at the negotiating table, signaling a readiness to concede points emerging from dialogue. 

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

  By Rajiv Shah   This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.

The price of silence: Why Modi won’t follow Shastri, appeal for sacrifice

By Arundhati Dhuru, Sandeep Pandey*  ​In 1965, as India grappled with war and a crippling food crisis, Prime Minister Lal Bahadur Shastri faced a United States that used wheat shipments under the PL-480 agreement as a lever to dictate Indian foreign policy. Shastri’s response remains legendary: he appealed to the nation to skip one meal a day. Millions of middle-class households complied, choosing temporary hunger over the sacrifice of national dignity. Today, India faces a modern equivalent in the energy sector, yet the leadership’s response stands in stark contrast to that era of self-reliance.

False claim? What Venezuela is witnessing is not surrender but a tactical retreat

By Manolo De Los Santos  The early morning hours of January 3, 2026, marked an inflection point in Venezuela and Latin America’s centuries-long struggle for self-determination and independence. Operation Absolute Resolve, ordered by the Trump administration, constituted the most brutal and direct military assault on a sovereign state in the region in recent memory. In a shocking operation that left hundreds dead, President Nicolás Maduro and First Lady Cilia Flores were illegally kidnapped from Venezuelan soil and transported to the United States, where they now face fabricated charges in a New York federal detention facility. In the two months since this act of war, a torrent of speculation has emerged from so-called experts and pundits across the political spectrum. This has followed three main lines: One . The operation’s success indicated treason at the highest levels of the Bolivarian Revolution. Two . Acting President Delcy Rodríguez and the remaining leadership have abandone...

Gujarat government urged to introduce heat-stress safety rules for construction workers

By A Representative   A representation submitted to Gujarat Labour, Skill Development and Employment Minister Kunvarji Bavaliya has urged the state government to introduce legally enforceable safety standards to protect construction workers from extreme heat and heatwaves, and to launch a financial assistance scheme for labourers affected by climate-related health risks.