The government is considering amending the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (CLNDA), 2010

What is it?

A law passed in accordance with international standards that guarantees victims of nuclear accidents timely compensation under a no-fault liability regime.

Important attributes:

• Enacted in: 2010
• Strict liability: Operator responsible regardless of any wrongdoing.
• Liability channeling: Only the operator is responsible for compensating victims.
• Right of recourse: The operator is entitled to seek compensation from the supplier for defective equipment or services.
• Supplier liability provision: Created uncertainty and discouraged foreign/private suppliers.

Limit on compensation:

₹1,500 crore provided by the operator (compulsory insurance/security).

Extra ₹2,100–₹2,300 crore from the government if losses surpass ₹1,500 crore.

Limitation on private entry: Private companies refrained from entering because of broad and ambiguous supplier liability provisions.

Concerning the Atomic Energy Act of 1962:

What does the Atomic Energy Act of 1962 entail?

The Atomic Energy Act of 1962 serves as the main legislation in India for overseeing the advancement, regulation, and utilization of nuclear energy. It succeeded the previous Atomic Energy Act of 1948 and established the legal basis for centralized governance of atomic energy assets, technology, and research in India.

Purpose of the Legislation:

National Advancement: Encourage the harmonious application of nuclear energy for the benefit of citizens and industrial development.

Regulatory Supervision: Create a strong legal structure to oversee radioactive materials, facilities, and nuclear security.

Strategic Oversight: Maintain state dominance over nuclear assets to protect national security and sovereignty.

Main Attributes of the Legislation:

The Central Government is the only entity authorized to regulate production, utilization, disposal, and research related to atomic energy.

All findings of uranium or thorium must be communicated.

Extracting, discarding, or owning these minerals requires prior permission from the government.

The government may conduct mineral exploration on private property with prior notification and compensation.

Only authorized persons/entities are permitted to engage in activities related to atomic energy.

Violating a license, hindering authority, or making false statements are subject to penalties.

Limitations on Private Sector Participation:

The Act prohibits private entities from participating in atomic energy operations unless explicitly authorized by the Central Government.

Only government entities such as NPCIL are permitted to possess and manage nuclear facilities.