India's nuclear liability law is primarily governed by the Civil Liability for Nuclear Damage Act, 2010 (CLND Act, 2010). This law establishes the framework for compensation in the event of a nuclear accident, outlining liability provisions for nuclear plant operators and suppliers.

1. Strict and Channelled Liability:
   • The operator of a nuclear installation has strict liability for any nuclear damage caused by a nuclear incident.
   • This means victims do not have to prove negligence-if an incident occurs, the operator is automatically liable.
2. Liability Cap on Operators:
   • The maximum liability for a nuclear plant operator is 1,500 crore (15 billion).
   • If damage exceeds this amount, the government can step in to provide additional compensation.
3. Right of Recourse Against Suppliers:
   • Under Section 17(b) of the Act, the operator has the right to seek compensation from the supplier if the accident is due to defects in the supplied equipment or services.
   • This provision has been controversial as it deviates from the Convention on Supplementary Compensation for Nuclear Damage (CSC), which limits liability primarily to operators.
4. Compensation Mechanism:
   • A Nuclear Liability Fund is maintained by the government to cover damages beyond the operator's cap.
   • Compensation claims are handled by a Nuclear Damage Claims Commission.
5. No-Fault Liability Principle:
   • Compensation is provided regardless of fault, ensuring quick relief to victims.

• The supplier liability clause has made foreign companies cautious about investing in India's nuclear energy sector.
• India's agreement with the International Atomic Energy Agency (IAEA) and its membership in the CSC aim to align its liability framework with international standards.
• Companies like Westinghouse and Rosatom have sought assurances regarding indemnity before finalizing nuclear deals with India.

India's Civil Liability for Nuclear Damage Act, 2010 (CLND Act) plays a crucial role in balancing the growth of the nuclear energy sector with the protection of public interests. Its significance can be understood from multiple perspectives:

1. Protection of Public Interest

• Ensures that victims of nuclear accidents receive compensation without having to prove negligence.
• Establishes a Nuclear Damage Claims Commission to handle claims efficiently.
• Encourages operator accountability, reducing the risk of mishandling nuclear installations.

2. Boosts India's Nuclear Energy Program

• By setting clear liability rules, it provides a legal framework for nuclear energy expansion.
• Supports India's goal of increasing nuclear power generation as part of its clean energy initiatives.

3. Supplier Liability -A Unique Aspect

• Unlike many international norms (e.g., the Convention on Supplementary Compensation), India's law allows operators to recover damages from suppliers if defective equipment causes an accident.
• This provision ensures that suppliers cannot escape responsibility for faulty technology.
• However, it has made foreign suppliers hesitant to invest in India's nuclear projects.

4. Alignment with International Norms

• India has joined the CSC, but its domestic law still differs in terms of supplier liability.
• Balances international investment concerns with national interests.

5. Strategic and Geopolitical Importance

• Strengthens India's nuclear diplomacy by offering clarity on liability in agreements with countries like the U.S., Russia, and France.
• Encourages the development of indigenous nuclear technology while ensuring foreign collaborations follow India's safety and liability framework.

• Some argue that the 1,500 crore cap on operator liability is too low.
• Supplier liability provisions have slowed down foreign investments and nuclear technology deals.
• Delays in setting up the Nuclear Liability Fund raise concerns about quick compensation in case of an accident.

India's nuclear liability law is a double-edged sword-while it protects public interests and ensures accountability, it has also impacted foreign investments in nuclear energy. Striking a balance between safety, compensation, and attracting global suppliers remains a challenge for India's nuclear energy expansion.