·PIB·15 marks·250–350 words

India's Civil Liability for Nuclear Damage Act, 2010 has been both a safeguard and a deterrent. Critically evaluate its role in shaping India's nuclear energy trajectory.

In this answer
  1. As a safeguard
  2. As a deterrent

The CLND Act, 2010 gave India its first statutory compensation regime for nuclear incidents, fixing no-fault liability on the operator with a cap of ₹1,500 crore [1]. Fifteen years on, its repeal by the SHANTI Act, 2025 [4] confirms a dual legacy: strong on victim protection, weak as investment-enabling law.

As a safeguard

  • Strict, no-fault liability: victims need not prove negligence, ensuring prompt compensation — a legislative correction of the delays that followed the Bhopal disaster [1].
  • Layered financial security: liability beyond the operator's cap devolves on the Central Government, up to 300 million SDR, so compensation is not limited by an operator's balance sheet [1][2].
  • Supplier accountability: Section 17(b) created a right of recourse against suppliers for defective equipment or sub-standard services — a rare provision globally that pushed safety-by-design onto vendors [1].
  • Sovereign credibility: a domestic liability statute was the precondition for operationalising India's civil nuclear cooperation agreements.

As a deterrent

  • Section 17(b) departed from the international convention practice of channelling all liability to the operator; the SHANTI Act's removal of supplier liability precisely to "align with international conventions" is an official admission of this friction [4].
  • Open-ended recourse and a broadly worded "supplier" made risk difficult to price or insure, raising project costs and stalling vendor negotiations.
  • Outcome: installed nuclear capacity remained about 8,180 MW, far short of what the 100 GW by 2047 goal requires [3].
  • Combined with the Atomic Energy Act's state monopoly, it foreclosed the private capital now being courted through the ₹20,000 crore Nuclear Energy Mission and NPCIL's RFP for 220 MW Bharat Small Reactors [3][5].

On balance, the Act was ethically sound but commercially self-limiting — it secured the victim while deferring the reactor. The SHANTI Act, 2025 retains graded strict operator liability and grants the AERB statutory backing accountable to Parliament [4], suggesting the correct path: safety guaranteed by an independent regulator rather than by deterring investment, so that nuclear power can credibly serve the Net Zero-2070 pledge.

Sources

  1. 1The Civil Liability for Nuclear Damage Act, 2010 (full text, PRS)no-fault liability, ₹1,500 crore operator cap, Section 17(b) right of recourse
  2. 2PRS Legislative Research — Civil Liability for Nuclear Damage Bill, 2010 (Bill Track)Central Government liability beyond the operator cap, up to 300 million SDR
  3. 3PIB — Nuclear Power in Union Budget 2025-26₹20,000 crore Nuclear Energy Mission, 100 GW by 2047 target, present installed capacity of 8,180 MW
  4. 4PIB — The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025repeal of the 1962 and 2010 Acts, removal of supplier liability, graded operator liability, statutory status for AERB
  5. 5PIB — NPCIL Invites Proposals for Setting Up 220 MW Bharat Small Reactors (BSR) for Captive Useprivate industry participation in captive nuclear generation

More from this note