Lok Sabha passes nuclear energy Bill allowing privatisation

India's energy landscape is undergoing a significant transformation, and the recent passing of a nuclear energy Bill in the Lok Sabha marks a pivotal moment. This legislative change, aimed at facilitating private sector participation in the traditionally state-dominated nuclear power sector, has ignited debates surrounding energy security, economic growth, and crucially, safety and accountability.

**Background Context and Historical Trajectory:**

India's nuclear energy program, initiated in the 1940s under the vision of Dr. Homi J. Bhabha, has historically been a strategic domain controlled by the government. The primary legislation governing this sector is the **Atomic Energy Act, 1962**, which empowers the Central Government to develop and control atomic energy for peaceful purposes. For decades, the Nuclear Power Corporation of India Limited (NPCIL), a public sector undertaking under the Department of Atomic Energy (DAE), has been the sole entity responsible for the design, construction, operation, and maintenance of nuclear power plants. This state-centric approach was driven by national security concerns, the indigenous three-stage nuclear power program, and the desire for self-reliance in a sensitive technological area. However, India faces a rapidly growing energy demand and ambitious climate change targets, necessitating a massive expansion of its clean energy capacity. Nuclear power, being a clean and reliable base-load source, is seen as crucial for achieving both energy security and de-carbonization goals, as highlighted in India's Nationally Determined Contributions (NDCs) under the Paris Agreement.

**The Legislative Change: What Happened?**

The Lok Sabha recently passed a Bill, which, though not formally named 'SHANTI Bill' in official records, was referred to as such by the opposition during protests. This Bill seeks to amend the existing framework to open doors for private investment in the nuclear energy sector. The most contentious aspect of this legislation, as highlighted by the opposition, is the reported removal or dilution of a clause that held equipment suppliers responsible for failures. This provision is a direct reference to the **Civil Nuclear Liability Act, 2010 (CLNDA)**. The CLNDA was enacted in the aftermath of the Bhopal gas tragedy and intensified international pressure following the India-US Civil Nuclear Deal (the 123 Agreement), which required a robust liability framework. Section 17 of the CLNDA specifically allowed the operator (currently NPCIL) to have a right of recourse against the supplier in cases of patent or latent defects, substandard services, or intentional acts. The Centre has defended the Bill, stating that it aims to streamline processes, attract much-needed capital, and accelerate project execution to meet the country's energy targets.

**Key Stakeholders Involved:**

1. **The Central Government (Ministry of Power, DAE):** The primary proponent, seeking to attract private capital, accelerate nuclear power capacity addition, and enhance energy security. Their argument centers on the need for investment and technology.Atomic Energy is listed under Entry 6 of the Union List in the Seventh Schedule of the Constitution (Article 246).

2. **Nuclear Power Corporation of India Limited (NPCIL):** The existing public sector operator, which will likely partner with private entities or continue as a primary operator in a mixed model.

3. **Private Indian Conglomerates/Companies:** Potential investors and operators, poised to enter a high-capital, high-technology sector. Their interest lies in long-term returns and diversification.

4. **Opposition Parties (e.g., Indian National Congress):** Critics raising concerns about public safety, accountability, potential crony capitalism, the dilution of supplier liability, and the timing of the Bill. They argue that removing supplier liability compromises safety standards and shifts the burden onto the operator or the public.

5. **International Equipment Suppliers:** Companies from countries like France, Russia, and the USA, who have historically been hesitant to supply reactors to India due to the stringent supplier liability clause in the CLNDA. This amendment could potentially ease their concerns.

6. **The Public/Citizens:** End-users of electricity, but also the ultimate stakeholders concerning safety, environmental impact, and potential costs associated with liability.

**Significance for India and Future Implications:**

This legislative shift holds immense significance for India. Economically, it could unlock significant private investment, reducing the financial burden on the government and potentially accelerating the growth of India's nuclear power capacity from the current 6.7 GW to the target of 22.48 GW by 2031. This aligns with the 'Make in India' initiative by fostering an indigenous nuclear industry. From an energy security perspective, increased nuclear power reduces reliance on fossil fuels and diversification of the energy mix. Politically, it signifies a move towards market-oriented reforms even in strategic sectors. However, the core controversy around supplier liability is critical. While the government might argue that existing regulatory bodies like the **Atomic Energy Regulatory Board (AERB)** ensure safety, the dilution of financial accountability for equipment manufacturers raises questions about consumer protection and the robustness of India's liability framework in the event of an accident. This could impact India's international standing regarding nuclear safety protocols. The future will likely see a hybrid model of nuclear power development, with NPCIL potentially partnering with private players or private entities building smaller reactors (Small Modular Reactors - SMRs) or non-power applications. The success will depend on robust regulatory oversight, clear liability mechanisms, and building public trust, especially as India aims for a significant nuclear power expansion as part of its transition to a cleaner energy economy.

**Related Constitutional Articles, Acts, or Policies:**

* **Atomic Energy Act, 1962:** The principal legislation being amended.

* **Civil Nuclear Liability Act, 2010 (CLNDA):** The Act whose provisions regarding supplier liability are at the heart of the controversy.

* **Article 246 (Seventh Schedule, Union List, Entry 6):** Establishes atomic energy as an exclusive subject for the Union Government.

* **Electricity Act, 2003:** Governs the broader electricity sector, including generation, transmission, and distribution.

* **India's Nationally Determined Contributions (NDCs):** Nuclear energy plays a role in India's commitment to reducing emissions and achieving clean energy targets under the Paris Agreement.

* **National Energy Policy:** Guides India's overall energy strategy.