Atomic energy bill likely in Winter Session, but changes to nuclear liability law may have to wait

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The government is preparing to introduce the Atomic Energy Bill, 2025 in the upcoming Winter Session of Parliament, marking the first major legislative step in its long-term plan to expand India’s nuclear power capacity to 100 gigawatts (GW) by 2047.

However, amendments to the Civil Liability for Nuclear Damage (CLND) Act, critical for attracting private investment into the sector, are unlikely to be taken up alongside it, officials familiar with the matter told Moneycontrol.

The existing CLND law places a unique burden on suppliers by allowing the operator to seek recourse against them in the event of an accident caused by defective equipment or material. This “supplier liability” clause—unusual in global nuclear contracts—has been repeatedly cited by technology providers, insurers and financiers as a key reason for their reluctance to participate in India’s nuclear programme.

Atomic Energy Bill, 2025

On the other hand, the Atomic Energy Bill, which could be taken up in the Winter Session, seeks to modernise and consolidate the legal framework governing India’s nuclear sector, which has been under state control since the enactment of the Atomic Energy Act in 1962.

The new legislation is expected to clarify the role of private participation in nuclear power generation, ease the entry of new developers, and support the deployment of emerging technologies such as small modular reactors. Officials say this legislative move is essential for India’s clean-energy transition, given the limitations of conventional renewable sources and the need for reliable, round-the-clock power as electricity demand rises sharply.

The push for the bill comes at a time when the Union government has set an ambitious expansion plan under the National Nuclear Energy Mission announced in the 2025–26 Union Budget. India currently operates about 8.8 GW of nuclear capacity, and the roadmap targets a ten-fold increase over the next two decades.

As part of this strategy, the Centre aims to raise capacity to around 22 GW by 2032, through a combination of large pressurised heavy water reactors and new light-water units developed in collaboration with public-sector utilities such as the Nuclear Power Corporation of India Ltd (NPCIL) and NTPC Ltd. The roadmap also envisions the development of at least five indigenously designed small modular reactors by 2033, with dedicated funding earmarked for research and deployment.

Liability law still under review

Despite the government’s plan to accelerate nuclear capacity additions, amendments to the CLND Act—legislation that governs liability in the event of a nuclear accident—appear unlikely to be tabled this session.

“Some aspects of the CLND Act still need to be sorted out and require broader consensus. Hence, it is unlikely to be tabled in the upcoming session of the Parliament,” said a government official privy to the matter.

The Act has long been flagged by domestic and foreign suppliers as a barrier to investment, particularly due to provisions that allow operators to seek recourse against suppliers in case of accidents arising from faulty equipment. The government has acknowledged the need to modify the law to align with global practices and improve the bankability of nuclear projects.

If passed, the Atomic Energy Bill would mark a significant shift in India’s nuclear policy landscape, setting the stage for broader participation and faster project execution. But the sector’s full transformation may ultimately depend on how and when the liability framework is rewritten—a step that, for now, appears likely to wait beyond the Winter Session.

“The priority at this stage is to create the institutional and regulatory conditions for rapid expansion, especially as India prepares for a decade of high electricity demand driven by industrial growth, electric mobility, data centres and green hydrogen production,” said a second government official requesting anonymity.