Simply Put: Nuclear liability

Nuclear liability refers to the legal framework that determines who is responsible for paying compensation in the event of a nuclear accident. This is a critical and complex issue, particularly for a country like India which is aggressively pursuing nuclear power as a clean energy source to meet its growing demands. The inherent risks associated with nuclear energy, as tragically demonstrated by incidents like Chernobyl (1986) and Fukushima (2011), necessitate robust legal provisions to ensure victim compensation and operator accountability.

Historically, the global consensus, largely shaped by international conventions such such as the Paris Convention (1960) and the Vienna Convention (1963), has been to channel liability exclusively to the operator of the nuclear installation. This 'operator-only' liability model aims to simplify claims and prevent prolonged litigation, ensuring swift compensation. However, the Bhopal Gas Tragedy in India (1984), where victims struggled for decades to receive adequate compensation from Union Carbide, deeply influenced India's approach to industrial and nuclear liability, fostering a strong emphasis on victim protection and supplier accountability.

The real impetus for India to codify its nuclear liability regime came with the landmark India-US Civil Nuclear Cooperation Agreement signed in 2008. This deal, which ended India's nuclear isolation and allowed it access to international civil nuclear technology, required India to have a domestic liability law that was broadly consistent with international norms, particularly the Convention on Supplementary Compensation for Nuclear Damage (CSC), which India ratified in 2016. Consequently, India enacted the Civil Liability for Nuclear Damage Act (CLNDA) in 2010.

**Key Stakeholders Involved:**

1. **Indian Government (Department of Atomic Energy):** The primary policymaker and regulator, responsible for promoting nuclear energy while ensuring safety and liability. It also oversees the Nuclear Power Corporation of India Limited (NPCIL).

2. **Nuclear Power Corporation of India Limited (NPCIL):** The sole operator of nuclear power plants in India, directly liable for any nuclear damage under CLNDA.

3. **Foreign Nuclear Suppliers:** Companies like Westinghouse (USA), Rosatom (Russia), and EDF (France) are crucial for India's nuclear expansion, providing technology, reactors, and fuel. Their concerns about liability under CLNDA have been a major point of contention.

4. **Potential Victims:** The general public and environment, who would suffer direct damage in case of an accident. Their right to swift and adequate compensation is at the heart of the law.

5. **Insurance Pool:** The India Nuclear Insurance Pool (INIP), established in 2015, provides liability coverage to nuclear operators, addressing the financial burden.

**Why This Matters for India:**

CLNDA is pivotal for India's energy security and industrial growth. India aims to significantly increase its nuclear power capacity to meet its climate goals and reduce reliance on fossil fuels. The CLNDA, however, introduced a unique provision in Section 17(b) which grants the operator a 'right of recourse' against suppliers in cases of faulty equipment or services, and Section 46, which allows victims to sue under other laws (e.g., tort law), potentially holding suppliers directly liable. These provisions deviate from the international 'operator-only' model and have been a major hurdle for foreign suppliers, who fear unlimited liability, delaying billions of dollars in planned investments and technology transfers. This impacts the 'Make in India' initiative in the nuclear sector, as domestic suppliers also face potential liability.

**Constitutional & Policy References:**

* **Civil Liability for Nuclear Damage Act, 2010 (CLNDA):** The cornerstone legislation. Key sections include:

* **Section 6:** Caps the operator's liability (currently ₹1,500 crore, subject to revision).

* **Section 17(b):** Allows the operator (NPCIL) to seek recourse from suppliers if the accident is caused by their latent defect or substandard services.

* **Section 46:** States that the Act does not limit the operation of other laws, implying that victims could potentially sue suppliers under general tort law, though this interpretation has been debated and clarified through rules.

* **Article 21 (Right to Life and Personal Liberty):** This fundamental right, interpreted broadly by the Supreme Court, includes the right to a clean environment and compensation for damage to life and property, providing the constitutional basis for a robust liability regime.

* **Convention on Supplementary Compensation for Nuclear Damage (CSC):** India's ratification of CSC in 2016 aimed to align its domestic law with international standards, but the interpretation of CLNDA's supplier liability clauses remains a point of negotiation.

**Future Implications:**

The future of nuclear power expansion in India hinges significantly on resolving the supplier liability issue. Clarity and certainty in the interpretation of CLNDA, particularly Sections 17(b) and 46, are crucial to attract foreign investment and technology. Success in this area will enable India to achieve its target of 22,480 MW nuclear power capacity by 2031. It also impacts India's standing as a responsible nuclear power nation and its ability to engage in advanced nuclear technologies like Thorium-based reactors. The ongoing negotiations and potential amendments or clarifications to the CLNDA rules will be critical in shaping India's energy future, balancing the need for energy security with robust safety and liability standards.