Skip to main content

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.
---
*Social activist 

Comments

TRENDING

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat*  Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu.  He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

Is India emulating west, 'using' anti-terror plank to justify state-supported violence?

Fahad Ahmad, Baljit Nagra*  Prime Minister Justin Trudeau has accused India of being involved in the assassination of Hardeep Singh Nijjar, a Canadian Sikh leader, on Canadian soil. Narendra Modi’s right-wing Hindu nationalist Indian government is defiant and denies involvement. Indian officials have instead admonished Canada for being a “ safe haven ” for Sikh “terrorism,” a pejorative for Sikh self-determination .

Adani Group declares it will "self-finance" Australian coal mining project: Traditional group registers fresh opposition

By  A  Representative The controversial Adani Group's Carmichael coal mine and rail project in Queensland, Australia, will be "100% financed" through the Group’s own resources, Adani, Mining CEO Lucas Dow has said. A South Asia Times, Melbourne, report has quoted Dow as saying in Queensland, “We have already invested $3.3 billion in Adani’s Australian businesses, which is a clear demonstration of our capacity to deliver a financing solution for the revised scope of the mine and rail project." Dow Pointing out that "the project stacks up both environmentally and financially", he added, "Today’s announcement removes any doubt as to the project stacking up financially... The Carmichael Project will deliver more than 1,500 direct jobs on the mine and rail projects during the initial ramp-up and construction phase, and will support thousands more indirect jobs, all of which will benefit regional Queensland communities.” The project faces fierce opposition ...

Beyond the rhetoric: Gujarat’s 2047 promise and its hidden faultlines

By Rajiv Shah    A few days ago, I met a veteran Gujarat-based economist, the author of several books offering a critical evaluation of the state’s economy, poverty, and gender discrimination . Also present was a retired Gujarat-cadre bureaucrat with an economics background, known for his popularity in the cities and districts where he served during his heyday.