Government Mulls Amendments to Atomic Energy Act, Nuclear Liability Law

21 May 2025

The government is evaluating potential changes to the legislation regulating the nuclear energy sector, including the relevant regulatory body, to facilitate private sector involvement as India targets the generation of 100 GW of nuclear power by 2047. According to a report, revisions to the Atomic Energy Act are under consideration to enable private sector participation, as well as modifications to the Civil Liability for Nuclear Damage Act to restrict the liability of equipment suppliers for the construction of nuclear power facilities.

The government is also currently contemplating regulatory reforms and assessing the framework of the Indian National Space Promotion and Authorisation Centre (INSPACe), which serves as both the promoter and regulator for the space industry that was opened to private involvement in 2020. Finance Minister Nirmala Sitharaman declared the liberalisation of the nuclear power sector, which has previously been limited to public sector enterprises. The Nuclear Power Corporation of India Limited manages nuclear power plants nationwide, contributing 8.7 GWe to the national energy portfolio.

Sitharaman also unveiled the Nuclear Energy Mission aimed at the research and development of Small Modular Reactors (SMRs), with a budget allocation of Rs 20,000 crore, and the goal of making five domestically developed SMRs operational by 2033. Officials from the Department of Atomic Energy have recently stated that the Nuclear Energy Mission seeks to enhance private sector involvement, simplify regulatory structures, and expand nuclear power generation to meet India's growing energy needs.

International nuclear energy companies expressed interest in establishing nuclear power facilities in India following the country's acquisition of a waiver from the Nuclear Suppliers Group, allowing participation in global nuclear commerce. This waiver was granted subsequent to the significant India-US civil nuclear deal of 2008. Nevertheless, the Civil Liability for Nuclear Damage Act of 2010 was seen as a barrier to private sector involvement. The private sector deemed specific provisions of the legislation to be unacceptable and inconsistent with the international Convention for Supplementary Compensation for Nuclear Damage (CSC).