Centre mulls umbrella law, special tribunal for nuclear energy disputes: Report

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The Centre is exploring a complete overhaul of India’s nuclear energy framework as it looks to open up the tightly regulated sector to private participation. According to a report in The Economic Times, the government is considering drafting a single umbrella legislation that will replace the existing laws governing nuclear energy.

The new legal framework could pave the way for private companies to enter at least four to five critical areas of the nuclear fuel cycle — from exploration and mining of atomic minerals to fuel fabrication — which are currently reserved for the state.

A key proposal under discussion is the creation of a dedicated vertical on nuclear safety and safeguards, the report said.

This body is expected to work closely with the International Atomic Energy Agency (IAEA) and will have powers to deploy inspectors across all nuclear reactors in the country. ET reported that the authority will be tasked with “accounting for each gram of nuclear fuel deployed across reactors, from procurement to usage and disposal,” with regular reporting to the Indian government and onward to the IAEA.

The government is also considering restricting the use of domestic uranium exclusively for strategic purposes, while commercial power generation could depend on imported uranium subject to quality and safety norms, the ET report said.

Sensitive technologies, including heavy water production and nuclear waste management, are likely to remain under the Department of Atomic Energy’s control. Proposals also include a dedicated Radioactive Waste Management & Decommissioning Authority, along with a Fuel and Heavy Water Regulator.

Special tribunal for disputes

Industry stakeholders have reportedly flagged concerns over potential litigation in civilian courts on matters such as licensing, partnerships, or mergers. To address this, the government is examining the feasibility of a specialised tribunal for atomic energy disputes. Only cases deemed mala fide or involving deliberate malicious acts would go to civil prosecution, ET said.

The contentious issue of liability under the Civil Liability for Nuclear Damages Act, 2010, is also being revisited. A proposal suggests that beyond a certain compensation cap, the sovereign government would step in, while private operators would be required to cover initial liability through insurance.

At a top-level meeting, ET reported that the suggestion was made to not just amend existing laws but “draft a whole new Act which redraws India’s nuclear laws with a new approach and subsumes all existing laws and rule books on the subject.”