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India to Revamp Nuclear Laws to Limit Supplier Liability and Attract Private Investment

India is planning a comprehensive overhaul of its nuclear energy laws, including the Civil Liability for Nuclear Damage (CLND) Act, to cap the currently unlimited liability of suppliers. The proposed revamp aims to align the country’s legal framework with global standards and encourage private sector participation in nuclear energy development.

With a target of 100 GW of nuclear capacity by 2047, up from the current 8.88 GW, the government sees legal reforms as critical to attracting investment and expediting project development. So far, India's nuclear sector has been largely state-driven, with laws such as the CLND Act and the Atomic Energy Act crafted under the assumption of public sector exclusivity.

Policymakers argue that the open-ended nature of supplier liability discourages both domestic and international private companies from entering the sector. By rewriting the legislation instead of issuing piecemeal amendments, the government aims to create a predictable, investor-friendly environment.

The revamp comes at a time when India is intensifying efforts to diversify its energy mix with cleaner baseload power sources. A draft roadmap for achieving 35-40 GW of nuclear capacity by 2035 is already in the works, and private involvement is seen as essential to meeting these long-term energy goals.