(26 Sep, 2025)



Simultaneous Elections in India

Source:IE

Why in News?

Arvind Panagariya, Chairman of the 16th Finance Commission, noted that frequent elections hinder reforms and highlighted that the simultaneous elections improve governance and policy implementation.

What are Simultaneous Elections?

  • About: Simultaneous elections (One Nation, One Election) refer to conducting elections for the Lok Sabha and all State Legislative Assemblies at the same time. This does not mean voting happens across the country on the same day, polls can still be held in phases.
  • Key Provisions of the Bills: 
    • The Constitution (129th Amendment) Bill, 2024: Introduces Article 82A to align the terms of the Lok Sabha and State Assemblies. It empowers the ECI to conduct simultaneous elections and allows the ECI to declare the end date of each State Assembly's term when notifying election schedules.
      • The Bill proposes an amendment to Article 83, stipulating that if the Lok Sabha is dissolved before completing its full term, the next Lok Sabha will serve only the unexpired portion of the term. 
      • Similar amendments are proposed for Article 172 regarding the duration of State Legislatures. 
    • Union Territories Laws (Amendment) Bill, 2024: Proposes amendments to the Government of Union Territories Act, 1963, the Government of National Capital Territory of Delhi Act, 1991, and the Jammu and Kashmir Reorganisation Act, 2019, to align the term of Union Territories' Legislative Assemblies with that of the Lok Sabha.
    • Local bodies (Municipalities and Panchayats) are not included in the proposed bill.

High-Level Committee on Simultaneous Elections, 2023

  • The Committee headed by former President Ram Nath Kovind, proposed restoring a cycle of simultaneous polls in two stages, first synchronising Lok Sabha and state assembly elections, followed by aligning municipal and panchayat polls within 100 days. 
  • It recommended that to synchronise elections, the President will declare the first sitting of the Lok Sabha as the “appointed date.” State assemblies elected after this date will serve only until the next parliamentary polls, ensuring future simultaneous elections. 
    • In cases like a hung House or no-confidence motion, fresh polls will be held for the remainder of the term.
  • It also called for a single electoral roll and photo ID system prepared jointly by the Election Commission and state election bodies to ensure smooth conduct of simultaneous polls.

How do Frequent Elections Impact Governance in India?

  • Policy Hesitation: The Union government may delay reforms, fearing electoral backlash in upcoming state elections.
  • Interrupted Project Implementation: The Election Commission of India (ECI) Model Code of Conduct (MCC) halts procurement, project execution, and policy decisions during election periods.
  • Short-Term Fiscal Focus: Governments may focus on populist spending and subsidies to win votes, rather than long-term fiscal planning.
    • Election cycles spread over five years can multiply fiscal pressure, forcing uneven resource allocation.
  • Identity Politics and Social Fragmentation: Frequent elections often intensify identity-based mobilization around caste, class, or religion, thereby deepening social divisions and weakening long-term national cohesion.
  • Administrative Disruptions: Bureaucratic functions and consultations, such as those by the Finance Commission, can be delayed.
  • Declining Democratic Participation: Repeated electoral cycles can lead to voter fatigue, lowering enthusiasm and turnout, which undermines the quality and inclusiveness of democratic participation.

 What is the Need for Simultaneous Elections in India?

  • Promotes Consistency in Governance: Focus shifts from campaigning to developmental activities and policy implementation. Simultaneous elections cut costs associated with multiple election cycles, freeing resources for economic growth.
  • Prevents Policy Paralysis: Reduces prolonged enforcement of the Model Code of Conduct (MCC) and allows governments to ensure smoother policy implementation and better continuity in governance.
    • Allows parties to dedicate efforts to public welfare rather than frequent elections.
  • Mitigates Resource Diversion: Limits repeated deployment of polling officials and civil servants, freeing them for core duties.
  • Enhances Political Opportunities: Simultaneous elections require more candidates at all levels, giving newer leaders space to emerge and reducing dominance by a few big names, while promoting inclusivity and wider representation within parties.

Committee/Commission Recommendations on Simultaneous Elections in India

  • Election Commission of India (1983): Recommended holding simultaneous elections for the House of the People (Lok Sabha) and the Legislative Assemblies of States.
  • Law Commission 170th Report (1999): Suggested methods for simultaneous elections  in two phases.
  • Parliamentary Standing Committee on Law & Justice (2015): Supported the idea, citing cost savings and smoother governance. Emphasised the need for political consensus and gradual implementation
  • Draft Law Commission Report (2018): The draft report stated that simultaneous elections require constitutional amendments and proposed a two-phase synchronization.

What are the Challenges Associated with Simultaneous Elections?

  • Logistical Burden: Conducting elections for over 96 crore voters at once means managing over 1 million polling booths, huge security forces, and personnel deployment on a scale never attempted before.
    •  Updating electoral rolls, training staff, coordinating security, and running voter education drives across all states at the same time will be highly complex.
  • Technology Infrastructure: In the 2024 elections alone, 1.7 million Electronic Voting Machines and 1.8 million Voter Verified Paper Audit Trails (VVPATs) were used. Simultaneous polls would need even more machines, backups, and foolproof systems.
  • Federal Concerns: Cutting short or extending the terms of state assemblies for alignment may weaken the federal spirit of the Constitution.
  • Accountability: With fewer election cycles, governments and leaders may face less frequent public scrutiny.
  • Legal Uncertainty: Amendments and new processes could be challenged in courts, delaying or complicating implementation.
  • Regional Disparities: Smaller states and regional parties fear being sidelined in “nationalized” elections.
    • National issues and big parties may dominate campaigns, reducing focus on local problems and regional parties.
  • Constitutional Amendments Required: Simultaneous elections would need amendments to Articles 83, 85, 172, and 174 to fix the tenure and prevent premature dissolution of Lok Sabha and State assemblies.
    • Article 356 would also need modification to address issues like President’s Rule, which can dissolve State assemblies prematurely.

What Reforms can Facilitate the Transition to Simultaneous Elections in India?

  • Legal Clarity: Establish clear procedures, schedules, and necessary constitutional amendments for synchronized elections.
    • Establish clear provisions for handling premature dissolutions and by-elections.
  • Strengthening Electoral Infrastructure: Create a unified electoral roll for all three tiers, use technology for voter verification and results, and upgrade EVM and VVPAT management.
  • Public Awareness Campaigns: Educate citizens through nationwide campaigns, NGOs, and community organizations on the benefits and process of simultaneous elections.
  • Capacity Building: Train election officials on new technologies and procedures to ensure smooth and efficient implementation.
  • Adjust Election Timings: Advance or postpone certain state elections to synchronize cycles.

Conclusion

The concept of Simultaneous Elections represents a significant step toward streamlined electoral management and efficient governance. While implementation requires careful constitutional amendments and political consensus, it promises administrative efficiency, fiscal prudence, and sustained policy focus, strengthening India’s democratic framework.

Drishti Mains Question:

Q. One Nation, One Election could reduce fiscal costs but may undermine federalism. Discuss in light of recent proposals for simultaneous polls.

UPSC Civil Services Examination Previous Year Question (PYQ) 

Prelims 

Q.Which one of the following factors constitutes the best safeguard of liberty in a liberal democracy? (2021) 

(a) A committed judiciary 

(b) Centralization of powers 

(c) Elected government 

(d) Separation of powers 

Ans: (d) 


Q. Consider the following statements: (2021) 

In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.

In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.

As per the existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her winning in all the constituencies.

Which of the statements given above is/are correct? 

(a) 1 only  

(b) 2 only 

(c) 1 and 3  

(d) 2 and 3 

Ans: (b)

Mains 

Q. Individual Parliamentarian’s role as the national law maker is on a decline, which in turn, has adversely impacted the quality of debates and their outcome. Discuss. (2019)

Q. “The local self-government system in India has not proved to be effective instrument of governance”. Critically examine the statement and give your views to improve the situation. (2017)


India’s Role in Amplifying the Voice of the Global South

For Prelims: United Nations, International Monetary Fund (IMF), International Solar Alliance, BRICS, Quad,

For Mains: Challenges to multilateralism and global governance reform, Role of India in representing the Global South’s concerns

Source: TH

Why in News?

India’s External Affairs Minister  convened a High‑Level Meeting of Like‑Minded Global South Countries in New York on the sidelines of the 80th session of the United Nations General Assembly. 

  • The meeting sought to strengthen solidarity, push for UN reforms, and ensure global governance reflects developing countries’ priorities, and pointed out that multilateralism is weakening just when the Global South needs it most.

Click here to Read: What is Global South?

Global_North-South

What Role is India Playing in Championing the Voice of the Global South?

  • Bridging Divides in Global Forums: India acts as a mediator between North and South on climate change, trade, and security issues. Projects itself as a “Vishwa Bandhu” (friend of the world), advocating inclusivity in global governance.
    • During its G20 Presidency (2023), India ensured the African Union’s inclusion as a permanent member, a landmark move for Southern representation.
    • India’s active participation in BRICS, Quad, and the Voice of Global South Summit reflects its commitment to global governance reform and strategic balance.
  • Multilateral Reform Advocacy: India persistently demands reforms in global institutions like the UNSC, World Bank, and IMF to reflect the voices of developing countries.
  • Sustainability and Climate Leadership: India is leading sustainable development efforts among developing nations. The Mission LiFE and the ISA and the National Green Hydrogen Mission reflect India’s sustainable development leadership.
    • As the 3rd-largest producer of wind and solar energy, India is supporting climate justice for vulnerable nations.
  • Digital and Technological Innovation: India is a global leader in Digital Public Infrastructure (DPI). Platforms like Aadhaar and UPI have inspired over 12 countries to adopt similar systems, enhancing digital equity and inclusion in the Global South.
  • Humanitarian and Development Assistance: India is emerging as a first responder in global crises through humanitarian missions such as Operation Dost (Turkey), Operation Karuna (Myanmar), and Operation Kaveri (Sudan), reinforcing its role as a key development partner.
    • India has extended Lines of Credit (LOCs) worth USD 12 billion to 42 African countries as part of its development finance initiatives.
  • Strategic Autonomy and Foreign Policy Balance: India maintains a policy of strategic autonomy, engaging with both the West and Global South without aligning rigidly.
    • India played a key role in establishing the Non-Alignment Movement (NAM) to promote self-determination for developing nations. 
    • Unlike China’s aggressive diplomacy, India offers a non-threatening, consultative leadership model.

What are the Concerns of the Global South in the Current World Order?

  • Lack of Representation in Global Institutions:  UN Security Council (UNSC) still reflects post-World War II power structures. India, the world's most populous country and a major economy, still lacks a permanent seat in the UNSC despite decades of advocacy.
    • The undermining of the UN system by major powers (like the US) has left smaller countries with no neutral forum to address regional conflicts or economic grievances.
    • International Monetary Fund (IMF) and World Bank governance is dominated by developed countries, limiting the voice and influence of developing nations.
  • Unfair Global Trade Rules: World Trade Organization (WTO) dispute resolution system is paralysed, harming smaller economies who rely on rules-based trade.
  • Weakening of Multilateralism: Multilateral institutions face legitimacy crises and funding shortages. WHO was criticised during the pandemic for alleged bias and lack of early action, eroding trust
    • WTO reforms have stalled due to lack of consensus between the Global North and South.
  • Climate Injustice: Global South contributes least to climate change but suffers the most from its impacts (e.g., floods, droughts, food insecurity).
    • Climate finance promised by Global North (e.g., USD 100 billion/year) remains delayed and insufficient.
    • The global south faces mounting pressure to reduce emissions without considering historical responsibility or development needs.
  • Weaponisation of Interdependence: Supply chains, energy, and finance are increasingly used as tools of geopolitical pressure. 
    • Vulnerable countries face tech restrictions, or sanctions, even if unrelated to conflicts. For example, after Russia’s invasion of Ukraine, Africa and South Asia faced food and fertilizer shortages due to disrupted grain and urea exports.
  • Debt Crisis and Financial Vulnerability: Many Global South countries like Sri Lanka are facing high external debt, worsened by Covid-19 and inflation.
  • Inequitable Access to Technology: The digital divide is widening as Artificial Intelligence, semiconductors, and green tech patents remain concentrated in the US, EU, and China, leaving most Global South LDCs excluded from access and innovation.
  • Rise of Geopolitical Blocs and Strategic Exclusion: Global South countries are increasingly pressured to pick sides in US-China or US-Russia rivalries. This undermines strategic autonomy and distracts from development goals.
  • Normative Double Standards: The Global South criticizes the West for selective human rights advocacy, acting on Ukraine while ignoring Gaza, and Global South countries often face external interference in internal matters.

How does South-South Cooperation (SSC) Complement & Challenge North-South?

Complementary Aspects

  • Bridging Development Gaps: SSC helps address gaps in finance, technology, and capacity-building that North-South aid often cannot cover. 
    • Initiatives like the India-UN Development Partnership Fund have extended demand-driven assistance to Pacific Island nations and Africa, offering flexible and context-specific support.
  • Promoting the SDGs through Local Solutions: Unlike one-size-fits-all models, SSC aligns with the 2030 Agenda by providing context-specific and sustainable solutions to achieve the Sustainable Development Goals (SDGs).
    • For instance, Colombian strategies to fight hunger and Brazilian agricultural technology have been successfully replicated in African contexts.
  • Triangular Cooperation as a Middle Ground: SSC also works in conjunction with developed nations through triangular cooperation, where Northern partners support Southern-led initiatives. 
    • This creates synergy rather than competition, as seen in FAO-led agricultural projects supported by China and implemented in Latin America.
  • Solidarity During Crises: SSC has played a key role during global emergencies. India’s vaccine diplomacy during Covid-19 is an example of solidarity-driven responses that complemented (or filled the void left by) North-South efforts.
  • Strengthens Global Resilience: By enabling flexible, peer-driven solutions, SSC helps countries confront overlapping crises such as climate change, pandemics, and debt distress.

Challenging Aspects

  • Geopolitical Realignment: Growing South-South trade and investments (China-Africa, India-ASEAN) shift global economic gravity, contesting the centrality of the North.
    • The rise of new southern powers (e.g., India, Brazil, South Africa) is shifting the center of global governance and challenging Western-led alliances.
  • Critiquing Selective Conditionality: Many Global South countries have raised concerns about the West’s use of aid as a tool of influence, with strings attached related to governance or policy reform. 
    • SSC presents a counter-model that is non-conditional and sovereignty-respecting.
  • Shifting Trade and Investment Patterns: Nearly 60% of high-tech exports from developing countries are traded within the Global South, indicating growing intra-South economic interdependence beyond traditional North-South flows.
  • Redefining Development Leadership: The rise of Southern powers like India in initiatives such as the International Solar Alliance (ISA) challenges the notion that development leadership and solutions must come from the Global North.

What Measures can Strengthen the Global South’s Voice with India’s Leadership?

  • Building Collective Platforms: India can institutionalize platforms like the Voice of the Global South Summit as regular annual/biannual forums to ensure developing nations have a united voice in global governance debates.
  • Reforming Global Institutions: India should lead efforts to push for UNSC expansion, IMF and World Bank reforms, ensuring the Global South has fair representation and voting power in decision-making.
  • Mobilizing Development Finance: With support from partners like Japan and multilateral banks, India can champion a Global South Development Fund to finance infrastructure, digital transformation, and climate resilience projects across the South.
  • Driving South-South Trade and Connectivity: India can work to reduce tariff barriers and promote intra-South trade agreements, expanding initiatives like the Asia-Africa Growth Corridor (AAGC) to counter global inequalities in trade flows.
  • Coordinated Peace and Security Role: India can mobilize the Global South to play a greater role in UN peacekeeping, conflict mediation, and inclusive peacebuilding, showcasing Southern contributions to global stability.
  • Balancing Global Partnerships: India’s multi-alignment strategy can help the Global South engage constructively with the Global North, ensuring that Southern concerns on trade, climate, and finance are not sidelined in Western-dominated forums.

Conclusion

A stronger Global South requires unity, credible leadership, and equitable participation in global governance. Guided by the Indian ethos of Vasudhaiva Kutumbakam (“One Earth, One Family, One Future”), India can amplify Southern priorities with inclusivity and balance. Its leadership can help transform the Global South from a passive voice into an active shaper of the world order.

Drishti Mains Question:

Q. How does South-South Cooperation complement or challenge the traditional North-South framework in addressing global development gaps?

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Mains 

Q.“If the last few decades were of Asia’s growth story, the next few are expected to be of Africa’s.” In the light of this statement, examine India’s influence in Africa in recent years. (2021) 

Q.Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post Cold War international scenario. (2016)


India’s SDG 3 Progress

Source: TH

Why in News?

India has achieved its best-ever position in the Sustainable Development Goal (SDG) Index 2025, ranking 99th out of 167 countries, up from 109 in 2024. The rise reflects progress in infrastructure and basic services

  • However, challenges remain in achieving SDG 3-Good Health and Well-being, with persistent health disparities, especially in rural and tribal areas.

SDG_3_Targets

What is the Status of India’s Progress on SDG 3?

  • Maternal Health: The maternal mortality ratio (MMR) stands at 97 deaths per 100,000 live births, far from the target of 70.
  • Child Mortality: The under-five mortality rate is 32 deaths per 1,000 live births, against a target of 25.
  • Life Expectancy: The average life expectancy is currently 70 years, falling short of the 73.63-year target.
  • Financial Burden: Out-of-pocket healthcare expenditure remains a heavy burden at 13% of total consumption, nearly double the target of 7.83%.
  • Immunisation: While high at 93.23%, immunisation coverage has not yet achieved the universal target of 100%.

What are the Reasons for Gaps in Achieving SDG 3 Targets?

  • Access Issues: Poor health infrastructure, especially in rural areas, and economic barriers prevent many from accessing quality healthcare.
  • Non-Economic Factors: Challenges such as poor nutrition, inadequate sanitation, and unhealthy lifestyle choices contribute significantly to the disease burden.
  • Socio-Cultural Barriers: Cultural practices and stigma, particularly around mental and reproductive health, often deter communities from seeking available medical services.
  • Double Burden of Disease: India continues to battle communicable diseases such as Malaria, Dengue, and Leprosy, while the rise of non-communicable diseases (NCDs)—including diabetes, cardiovascular diseases, places additional strain on the health system.
  • Covid-19 Pandemic Disruption: It diverted resources from immunization, maternal care, and disease control, leading to delayed diagnoses, interrupted treatment, fewer institutional deliveries, and setbacks in vaccine coverage.

What Measures Should India Adopt to Enhance SDG 3 Progress?

  • Universal Health Insurance: Implement universal health insurance to cut out-of-pocket costs and enhance equitable healthcare access.
  • Strengthening PHCs & Digital Health: Strengthen Primary Health Centres (PHCs) for early disease detection and use telemedicine and digital records to expand access in remote areas.
  • School Health Education: Introduce a structured health education curriculum in schools covering nutrition, hygiene, reproductive health, road safety, and mental well-being.
    • E.g., Finland reduced cardiovascular deaths, and Japan improved hygiene and longevity through school health education.
  • Cross-Sectoral Convergence: Strengthen coordination among Ministry of Health, Women and Child Development, Jal Shakti, and Environment for integrated nutrition, water and sanitation, environmental health, and healthcare
    • Empower Panchayati Raj Institutions and Urban Local Bodies to manage health initiatives and conduct social audits for accountability.
  • Accelerating the implementation of Schemes: Accelerate the implementation of schemes like Ayushman Bharat (Rs 5 lakh health cover per family); Poshan Abhiyaan (reduce stunting, under-nutrition), Mission Indradhanush (child immunization), and LaQshya (improve labour room and maternity care quality).

17_SDGs

Drishti Mains Question:

Q. Examine India’s progress under SDG 3 (“Good Health and Well-being”) and discuss the key challenges in achieving maternal and child health targets by 2030

UPSC Civil Services Examination, Previous Year Questions (PYQs)  

Prelims

Q. Sustainable development is described as the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. In this perspective, inherently the concept of sustainable development is intertwined with which of the following concepts? (2010) 

(a) Social justice and empowerment 

(b) Inclusive Growth 

(c) Globalization 

(d) Carrying capacity 

Ans: (d)

Mains

Q. Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs).” Comment on the progress made in India in this regard. (2018)


Goods and Services Tax Appellate Tribunal (GSTAT)

Source: PIB

Why in News? 

The Union Finance Minister formally launched the Goods and Services Tax Appellate Tribunal (GSTAT), marking a significant milestone in India’s GST journey. The tribunal is set to streamline dispute resolution  and reinforce trust in India’s indirect tax system.

What is the Goods and Services Tax Appellate Tribunal (GSTAT)?

  • About: GSTAT is a statutory body established under the Central Goods and Services Tax Act, 2017 to hear appeals against orders passed by the Appellate or Revisional Authorities. 
    • It provides taxpayers a specialized and independent forum for justice, enhancing the orderliness, predictability, and credibility of the GST regime.
  • Objectives: GSTAT aims to create a single, unified appellate forum for GST disputes across India (“One Nation, One Forum”). It minimizes legal friction and ambiguity in GST laws.
    • It aims to ensure timely resolution of disputes to improve cash flow and business certainty.
    • GSTAT focuses on plain language decisions, simplified formats, checklists, and virtual hearings. It promotes citizen-centric governance aligned with principles of ‘Nagarik Devo Bhava’ and Next-Gen GST reforms. 
  • Functions: GSTAT functions via a Principal Bench in New Delhi and 31 State Benches across 45 locations, ensuring nationwide reach. 
    • Each bench has 2 Judicial Members, 1 Central Technical Member, and 1 State Technical Member, blending judicial and technical expertise for impartial and consistent decisions.
    • Designed around the three S’s: Structure (judicial + technical expertise), Scale (state benches and single-member benches for simple cases), and Synergy (technology, process, and human expertise).
    • GSTAT e-Courts Portal enables online filing, case tracking, and virtual hearings for taxpayers and practitioners.
  • Benefits: Protects the rights of both large and small taxpayers with no undue delay in justice. Reduces ambiguity and ensures consistency in interpretation across India.
    • Encourages investment confidence and simplifies tax compliance for MSMEs, exporters, startups, and citizens.
    • Digital portal enables taxpayers to file appeals online, track cases, and participate in virtual hearings.

Read more: GST 2.0 with Next-generation Reforms

UPSC Civil Services Examination Previous Year Question (PYQ)  

Prelims

Q. Consider the following items: (2018)  

Cereal grains hulled 

Chicken eggs cooked 

Fish processed and canned 

Newspapers containing advertising material 

Which of the above items is/are exempted under GST (Good and Services Tax)?  

(a) 1 only 
(b) 2 and 3 only 
(c) 1, 2 and 4 only 
(d) 1, 2, 3 and 4  

Ans: (c)  

Q. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? (2017) 

It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 

It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves. 

It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future. 

Select the correct answer using the code given below:  

(a) 1 only  
(b) 2 and 3 only 
(c) 1 and 3 only  
(d) 1, 2 and 3  

Ans: (a) 


Qatar Becomes 8th Country to Adopt UPI

Source:TH

National Payments Corporation of India (NPCI) has partnered with Qatar National Bank (QNB) to implement the Unified Payments Interface (UPI) in Qatar

  • Key Benefits: Indians are the second-largest group of international visitors to Qatar. This adoption directly benefits tourists by reducing the need for cash and eliminating currency exchange hassles.
  • UPIs Global Expansion: As part of India’s efforts to globalize UPI, Qatar becomes the eighth country to adopt it, following Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE.

UPI

  • India's Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI), has emerged as a leading digital payment system, facilitating real-time, secure, and low-cost transactions. 
  • UPI is built on Immediate Payment Service (IMPS) and integrates Aadhaar Enabled Payment System (AePS).
  • India’s UPI is now the world’s top real-time payment system, processing over 640 million daily transactions more than Visa’s 639 million and powers 85% of India’s digital payments and nearly 50% of global real-time payments.

Read More: UPI


Nuclear Liability Fund

Source: BS

India plans to establish a nuclear liability fund under the upcoming Atomic Energy Bill, which aims to amend aspects of the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010. 

  • The move aims to unlock private and foreign investment in the country’s nuclear sector.
  • Need for Nuclear Liability Fund:  India’s nuclear power accounts for less than 3% of total electricity, but India plans to expand capacity 12-fold by 2047 to cut fossil fuel use and reach net-zero by 2070. 
    • Previous laws exposed suppliers to unlimited liability, deterring foreign investment, and the 2015 nuclear insurance pool lacked legal certainty. 
    • The proposed nuclear liability fund provides a structured accident compensation framework, boosting private participation, attracting foreign suppliers.
  • Key Features of Proposed Nuclear Liability Fund: The Fund covers nuclear accident compensation exceeding Rs1,500 crore, supplementing operator liability.
    • It provides a statutory, structured framework replacing the current ad hoc payout system.
    • It reduces risk for private and foreign investors in nuclear energy and uranium mining.

Civil Liability for Nuclear Damage Act (CLNDA), 2010 

  • It ensures compensation for nuclear accident victims and defines operator responsibility. It aligns with the Convention on Supplementary Compensation (CSC, 1997), ratified by India in 2016. 
  • The Act imposes strict no-fault liability on operators, capping their liability at Rs 1,500 crore. If claims exceed this, the government steps in, with its liability capped at the rupee equivalent of 300 million Special Drawing Rights (SDRs).
  • Under the act, the Nuclear Damage Claims Commission ensures fair compensation.

Read more: Reforming Civil Liability for Nuclear Damage Act, 2010