Nuclear liability laws in India govern the legal and financial responsibilities arising from nuclear incidents, balancing the need for energy development with public safety and compensation for potential damages. The cornerstone of this framework is the Civil Liability for Nuclear Damage Act, 2010 (CLND Act), enacted to facilitate India's entry into the international nuclear regime and address liability in the event of a nuclear accident.

1. Operator Liability: The operator of a nuclear facility (e.g., the Nuclear Power Corporation of India Limited, NPCIL) is primarily liable for damages caused by a nuclear incident. This is a "strict liability" regime, meaning the operator is responsible regardless of fault, though liability is capped.
   • Cap on Liability: The operator's liability is limited to ?1,500 crore (approximately $180 million USD as of 2025 exchange rates). Beyond this, the government assumes responsibility up to a total of 300 million Special Drawing Rights (SDRs), roughly $400 million USD, under international conventions.
2. Supplier Liability (Section 17(b)): A unique and controversial provision allows the operator to seek recourse from suppliers if the incident results from defective equipment or materials. This departs from international norms, where liability is typically channeled solely to the operator, and has been a point of contention with foreign suppliers.
3. Government Role: The central government covers damages exceeding the operator's cap and ensures compensation in catastrophic scenarios. It can also establish a Nuclear Damage Claims Commission if the scale of an incident overwhelms standard legal processes.
4. Time Limit: Claims for compensation must be filed within 10 years of the incident, extendable to 20 years for latent damages like radiation-related health issues.
5. Insurance: Operators are required to maintain financial security, typically through insurance or other mechanisms, to cover their liability.

India is not a signatory to the Convention on Supplementary Compensation for Nuclear Damage (CSC) in its original form but ratified it in 2016 with a declaration to align the CLND Act with CSC principles. However, the supplier liability clause remains a sticking point, causing hesitation among foreign companies (e.g., U.S. and French firms) to participate in India's nuclear sector, despite agreements like the Indo-U.S. Nuclear Deal.

• Fukushima Influence: The 2011 Fukushima disaster heavily influenced the CLND Act's passage, emphasizing the need for robust liability frameworks.
• Current Status: As of April 2025, India operates 22 nuclear reactors, with more under construction. No major incidents have tested the law, but debates persist over balancing investor confidence with victim protection.