India Eyes Easing Nuclear Liability Laws to Attract Global Firms
According to three official sources, India intends to adjust its nuclear liability rules by limiting penalties on suppliers after accidents to draw in American companies that have been deterred by current unlimited liability risks.
Prime Minister Narendra Modi's government has introduced a proposal to boost nuclear power production capacity by 12 times reaching 100 gigawatts by 2047 while simultaneously bolstering India’s position in trade and tariff discussions with the United States.
The department of atomic energy created a draft law which takes away an important provision from the Civil Nuclear Liability Damage Act of 2010 that made suppliers liable for unlimited damages in case of accidents according to three sources.
Requests for comments went unanswered by India's atomic energy department alongside the prime minister's office and the finance ministry.
According to Debasish Mishra from Deloitte South Asia, India requires nuclear power because it provides essential clean energy.
The imposition of a liability cap will resolve the primary worry among REPI:NUCLEAR suppliers.
The updated REPI:GRID-INFRASTRUCTURE match global standards which place safety responsibilities on nuclear power plant operators rather than reactor suppliers.
The Indian government expects the new regulations to address concerns from primary stakeholders such as U.S. companies General Electric Co (GE.N), opens new tab and Westinghouse Electric Co who have refrained from participation due to limitless liability risks from potential accidents.
The updated legislation is essential for India and the U.S. to finalize their trade agreement this year because it seeks to increase their bilateral trade from $191 billion to $500 billion by 2030.
The government led by Modi anticipates parliamentary approval for the amendments during the monsoon session starting in July according to sources.
The proposed amendments will limit an operator's accident compensation claim from the supplier to the contract's value. The contract will include a specified period during which this provision applies.
