Govt panel backs up to 49% FDI in nuclear power, proposes liability reforms

The government is reportedly reviewing amendments to both the Atomic Energy Act and the Civil Liability for Nuclear Damages Act to facilitate private sector participation in nuclear energy

A government panel has recommended opening India's nuclear power sector to up to 49% foreign direct investment (FDI), along with changes to civil liability rules to protect plant operators and cap supplier liability, according to the Economic Times.

The inter-ministerial committee, tasked with outlining a roadmap to achieve 100 GW of nuclear power capacity by 2047, has suggested allowing foreign players into the sector and revamping the existing legal framework. Currently, India does not permit foreign investment in nuclear energy. The panel has proposed amendments to the Civil Liability for Nuclear Damage Act, including clarifying that operators are shielded from liability under other laws and that supplier liability should be capped and clearly defined in contracts with plant operators, a key demand from global nuclear equipment suppliers, ET reported.

The committee, co-chaired by PS Karthigeyan, joint secretary at the Department of Atomic Energy, and Ajay Talegaonkar, member of the Central Electricity Authority, also includes representatives from the Department of Atomic Energy, Nuclear Power Corporation of India, NTPC, Bhabha Atomic Research Centre, and the power ministry, ET added.

It has also emphasised the need to revamp insurance coverage through the Indian Nuclear Insurance Pool (INIP), managed by the General Insurance Corporation of India, so that operators can be insured for up to Rs 1,500 crore per incident instead of the current floater policy, which would require strengthening the pool's capacity, according to the Economic Times.

The committee's report outlines India's 100 GW nuclear energy target, including 46.5 GW from indigenous pressurized heavy water reactors, 38.8 GW from pressurized water reactors, and 5 GW each from Bharat Small Modular Reactors, Bharat Small Reactors, and Fast Breeder Reactors, ET noted. Other recommendations include allowing government-licensed activities related to nuclear fuel handling.

The government is reportedly reviewing amendments to both the Atomic Energy Act and the Civil Liability for Nuclear Damages Act to facilitate private sector participation in nuclear energy, as highlighted by the Economic Times.