Nuclear Liability Fund

• 26 Sep 2025

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