India’s Nuclear Bill Shields Suppliers from Liability in Accidents
India’s new nuclear energy bill will spare equipment suppliers from liability in case of incidents, among other sweeping changes to the sector.
The government introduced the bill in the lower house of parliament, seeking lawmakers’ approval on Monday. If passed, this legislation will repeal the existing two laws that currently govern the nuclear industry.
The proposed law confines liability to plant operators, who will retain the right to pursue legal recourse in the event of accidents. Notably, the bill excludes suppliers from any responsibility, limiting the operators’ legal options to individuals who may have intentionally caused damage.
Read more: India Considers Nuclear Liability Fund for Major Accidents, Sources Say
India’s nuclear liability law has long been a stumbling block for the sector, hindering its growth despite the nation signing agreements with several supplier countries. Currently, India has about 9 gigawatts of nuclear power capacity, which accounts for less than 2% of its total energy mix. The government aims to expand this capacity more than eleven-fold to reach 100 gigawatts by 2047.
Atomic energy is seen as a crucial component in increasing the nation’s clean baseload capacity, thereby supporting efforts to achieve net-zero emissions by 2070. Presently, India relies on coal for nearly 70% of its electricity and is contemplating plans to continue adding new plants for approximately another two decades.
The proposed legislation, titled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India, 2025, represents a significant shift from existing regulations that expose both operators and suppliers to litigation under various national laws.
Additionally, the bill introduces liability limits based on the size of the reactors. For instance, units larger than 3.6 gigawatts will face a maximum liability of 30 billion rupees (approximately $331 million), while reactors of 150 megawatts or smaller will be liable for a maximum of 1 billion rupees, as outlined in the published bill.
Copyright 2025 Bloomberg.
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India’s new nuclear energy bill will spare equipment suppliers from liability in case of incidents, among other sweeping changes to the sector.
The government introduced the bill in the lower house of parliament, seeking lawmakers’ approval on Monday. If passed, this legislation will repeal the existing two laws that currently govern the nuclear industry.
The proposed law confines liability to plant operators, who will retain the right to pursue legal recourse in the event of accidents. Notably, the bill excludes suppliers from any responsibility, limiting the operators’ legal options to individuals who may have intentionally caused damage.
Read more: India Considers Nuclear Liability Fund for Major Accidents, Sources Say
India’s nuclear liability law has long been a stumbling block for the sector, hindering its growth despite the nation signing agreements with several supplier countries. Currently, India has about 9 gigawatts of nuclear power capacity, which accounts for less than 2% of its total energy mix. The government aims to expand this capacity more than eleven-fold to reach 100 gigawatts by 2047.
Atomic energy is seen as a crucial component in increasing the nation’s clean baseload capacity, thereby supporting efforts to achieve net-zero emissions by 2070. Presently, India relies on coal for nearly 70% of its electricity and is contemplating plans to continue adding new plants for approximately another two decades.
The proposed legislation, titled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India, 2025, represents a significant shift from existing regulations that expose both operators and suppliers to litigation under various national laws.
Additionally, the bill introduces liability limits based on the size of the reactors. For instance, units larger than 3.6 gigawatts will face a maximum liability of 30 billion rupees (approximately $331 million), while reactors of 150 megawatts or smaller will be liable for a maximum of 1 billion rupees, as outlined in the published bill.
Copyright 2025 Bloomberg.
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