Daijiworld Media Network - New Delhi
New Delhi, Nov 23: India is preparing to open the door for importing nuclear power reactors from American private companies, marking a major policy shift by the Narendra Modi-led government. After increasing crude oil imports from the US and announcing large-scale LPG purchases, New Delhi is now moving towards signing a contract to import missile systems — and the next step is nuclear reactors.
Sources confirm that the Centre will introduce the Nuclear Power Bill during the upcoming Winter Session of Parliament. The bill seeks amendments to both the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, aiming to relax India’s stringent nuclear accident liability norms. The government plans to pass the bill in the same session.
Under the existing law, foreign manufacturers face unlimited financial liability in case of an accident in a nuclear reactor supplied by them. The Modi government is now moving to dilute this provision. In her Budget speech on February 1, Finance Minister Nirmala Sitharaman had hinted at possible changes to the liability framework. Shortly after, following Prime Minister Narendra Modi’s meeting with US President Donald Trump in Washington, Trump publicly stated that India was considering easing its nuclear liability rules — enabling American firms to finally supply reactors to India. According to US officials, this will help India access cleaner and cheaper energy.
Government insiders say these moves are linked to ongoing India-US trade negotiations. New Delhi is seeking removal of the nearly 50% tariff penalty imposed by the US on certain Indian goods. In return, India is being pushed to ramp up imports of American products. After increasing oil, gas and defence-related imports, easing rules on nuclear reactor imports is seen as the next step.
The Centre argues that although India and the US signed the historic nuclear deal in 2008 during Manmohan Singh’s tenure, the agreement never fructified because India’s liability law imposed excessive financial risk on reactor suppliers. Additionally, the Atomic Energy Act does not permit private players — Indian or foreign — to operate nuclear power plants, nor does it allow foreign investment in domestic nuclear projects. The upcoming bill is expected to amend these provisions as well.
The Congress, however, has reminded the government that the same liability law being relaxed today was strongly championed in Parliament by the then Leader of the Opposition Sushma Swaraj and senior BJP leader Arun Jaitley during the UPA era.