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

Telangana government urged to stop 'unconstitutional' relocation of Chenchu tribes

By A Representative   The Nallamalla forests are witnessing a renewed surge of indigenous resistance as the Chenchu adivasis , a Particularly Vulnerable Tribal Group (PVTG), have formally launched the Chenchu Solidarity Forum (CSF) on the eve of World Earth Day to combat what they describe as unlawful and forced relocation from the Amrabad Tiger Reserve . 

Kolkata dialogue flags policy and finance deficit in wetland sustainability

By A Representative   Wetlands were the focus of India–Germany climate talks in Kolkata, where experts from government, business, and civil society stressed both their ecological importance and the urgent need for stronger conservation frameworks. 

'Fraudulent': Ex-civil servants urge President to halt Odisha tribal land dispossession

By A Representative   A collective of 81 retired civil servants from the Constitutional Conduct Group has written to the President of India expressing alarm over what they describe as the wrongful dispossession of tribal lands in Odisha’s Rayagada district. The letter, dated April 19, 2026, highlights violent clashes in Kantamal village where police personnel reportedly injured over 70 tribal residents attempting to protect their community rights. 

Dhandhuka violence: Gujarat minority group seeks judicial action, cites targeted arson

By A Representative   The Minority Coordination Committee (MCC) Gujarat has written to the Director General of Police seeking judicial action in connection with recent violence in Dhandhuka town of Ahmedabad district, alleging targeted attacks on properties belonging to members of the Muslim community following a fatal altercation between two bike riders on April 18.

Cracks in Gujarat model? Surat’s exodus reveals precarity behind prosperity claims

By Vidya Bhushan Rawat*   The return of migrant workers from Uttar Pradesh and Bihar, particularly from Gujarat, was inevitable. Gujarat has long been showcased as the epitome of “infrastructure” and the business-friendly Modi model. Yet, when governments become business-friendly, they require the poor to serve them—while keeping them precarious, unable to stabilize, demand fair wages, or assert their rights. The agenda is clear: workers must remain grateful for whatever crumbs the Seth ji offers.  

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

The high price of unemployment: The human cost of the drug crisis in J&K

​By Raqif Makhdoomi*  ​ Jammu and Kashmir is no longer merely at risk of a drug epidemic ; it is losing the fight. The statistics are staggering, with approximately 13.5 lakh people—nearly 8% of the total population—caught in the grip of substance abuse . In the ranking of Indian Union Territories , Jammu and Kashmir now sits at a grim top. We have officially reached a point where we can no longer speak in hypotheticals about a future crisis. The vocabulary has shifted from "if" to "if not addressed immediately."

India 'violating international law obligations' over Israel ties: UN rapporteur

By A Representative   Francesca Albanese, the United Nations Special Rapporteur on human rights in the occupied Palestinian territories, has alleged that India is “violating its obligations under international law” through its continued association with Israel, including defence ties and alleged arms exports during the ongoing conflict in Gaza.

Chromatographies of the self: Gender, labour, and resistance in Deepti Kushwah's verse

By Ravi Ranjan*  Any sensitive reader of contemporary Hindi poetry will find it impossible to overlook the eight poems by Deepti Kushwah recently published in Samalochan . This suite—comprising works such as ‘Ekākelī ābha’ (A Solitary Radiance), ‘Praśna mem camaktā huā’ (Glowing in the Question), and ‘Ek ankahī tapis’ (An Unspoken Heat)—constructs a multidimensional collage where colour transcends mere visual experience.