Government’s Plan to Amend Nuclear Laws
The Indian government is considering changes to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These amendments align with U.S. interests, as American administrations have long opposed liability provisions for nuclear suppliers.
Safety and Economic Concerns
Reducing supplier liability could weaken safety standards for nuclear reactors. The U.S.-designed AP1000 reactors, which India is being encouraged to purchase, are highly expensive and financially unviable.
The High Cost of Nuclear Accidents
Nuclear disasters, such as the Fukushima accident in 2011, have devastating consequences for victims, plant operators, and suppliers. India’s liability cap of ₹1,500 crore is significantly lower than the actual disaster cleanup costs, which ranged from ₹20-46 lakh crore in Fukushima.
Supplier Accountability and Right of Recourse
Current Indian laws allow NPCIL to seek damages from suppliers if equipment is defective or services are substandard. However, this provision is missing in many countries due to U.S. supplier influence.
History of Supplier Negligence
Major nuclear accidents, including Fukushima and Three Mile Island, were linked to supplier design flaws. Despite prior warnings about potential hazards, suppliers were not held accountable.
Political Reversals and U.S. Influence
While BJP leaders initially opposed relaxing nuclear liability laws, their stance changed after coming to power. U.S. officials, including Ambassador Eric Garcetti, have actively lobbied for amendments that would shield American corporations.
Economic Burden of U.S. Reactors
The AP1000 reactors have a history of delays and budget overruns. In the U.S., two projects were abandoned after wasting $9 billion, while completed reactors cost $36.8 billion—over 250% of initial estimates. If imported, these reactors would generate electricity at a far higher cost than other energy sources.
Contradictions in Safety Claims
U.S. suppliers argue that nuclear accidents occur only once in 50 million years. Yet, their push for legal indemnity suggests they acknowledge the real risks involved.
Impact on India
These amendments would prioritize corporate profits over public safety. The government’s willingness to alter laws under U.S. pressure raises serious concerns about India’s sovereignty in nuclear policy decisions.