New Delhi: India is planning a bigger policy change in the nuclear energy sector with two key amendments proposed for the upcoming Parliament session. According to sources cited by The Indian Express, the changes seek to open the civil nuclear industry to private players and to make nuclear projects under the Indo-US civil nuclear agreement ,signed nearly two decades ago, more viable.
The first proposed amendment will set limits on liability of the equipment suppliers in case of a nuclear accident. Currently, Indian law casts a very wide liability on the suppliers, which stands in direct contradiction to encouraging private investment. Under a new scheme, liability could be limited to the value of the contract and further limited to a period of time, with the net effect being that such suppliers will be freed of any long-term legal and financial liability-a major relief for foreign and domestic vendors alike.
The second amendment, which has not yet been formulated publicly, is expected to allow even easier private participation while maintaining regulatory oversight by the Department of Atomic Energy.
The move has come against the backdrop of Operation Sindoor, a high-profile national security operation, which has led to fresh discussions on self-reliance in strategic energy sectors, including nuclear power. Fusion of the argument sees unlocking private investment as the quickest conduit for India to go clean and service its rising electricity demand.
However, critics contend that diluting liability provisions is likely to weaken safety norms and public accountability. The government is expected to place the proposed amendments before Parliament for debate in the next session.
[Source Credit: FInancial Express]
