Civil Liability for Nuclear Damage Act (CLNDA)

News: The Indian government’s plan to amend the Civil Liability for Nuclear Damage Act (CLNDA) and the Atomic Energy Act has gained attention as Prime Minister Narendra Modi prepares to visit France and the U.S. from February 10-13, 2025.

About Civil Liability for Nuclear Damage Act (CLNDA), 2010

• The Civil Liability for Nuclear Damage Act, 2010 (CLNDA) establishes a legal framework for compensation in the event of a nuclear accident.
• The Act aligns with international conventions and ensures that victims of nuclear incidents receive adequate compensation while also balancing the responsibilities of nuclear plant operators and suppliers.

Key Provisions of the CLNDA

The Civil Liability for Nuclear Damage Act contains the following important provisions:

1. Operator Liability and Compensation

• The operator of a nuclear plant is held strictly liable for any nuclear damage caused, regardless of fault.
• The maximum liability for a nuclear incident is set at ₹1,500 crore ($200 million) for the operator. If damages exceed this amount, the central government assumes responsibility for additional compensation.

2. Right to Recourse Against Suppliers (Controversial Clause)

• Section 17(b) of the Act allows operators to seek compensation from suppliers if the nuclear incident is caused by defective equipment or faulty material.
• This provision is unique to India, as most international liability regimes (such as the Convention on Supplementary Compensation for Nuclear Damage – CSC) do not hold suppliers liable beyond their contractual obligations.

3. Compensation for Victims

• The Act provides a clear mechanism for compensation to affected individuals, ensuring fair and timely financial support.
• It mandates the creation of a Nuclear Liability Fund, where operators contribute to a pool that can be used in case of accidents.

4. Compliance with International Conventions

• India is a signatory to the Convention on Supplementary Compensation for Nuclear Damage (CSC), an international treaty that establishes uniform liability rules.
• However, India’s inclusion of supplier liability in the CLNDA has led to disagreements with international nuclear firms, delaying agreements on projects.