• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Warren Buffett sends investors 10-word stock market warning

August 22, 2026

Karoline Leavitt Reveals What Her New Job Will Be After Leaving the White House * The Gateway Pundit * by Cullen Linebarger

August 22, 2026

House Dems I Talk to ‘Really Worried’ About Being ‘Beholden’ to Democratic Socialists if Dems Narrowly Take House

August 22, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Saturday, August 22
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Karoline Leavitt Reveals What Her New Job Will Be After Leaving the White House * The Gateway Pundit * by Cullen Linebarger

    August 22, 2026

    “You Are 1% of This Nation…This City Is No Longer Under American Law…Enough is Enough!” – Christian Pastor Absolutely EXPLODES on Dearborn City Council During Meeting (VIDEO)

    August 22, 2026

    Starbucks Headquarters in Seattle Lays Off Hundreds as They Prepare to Send Jobs to Nashville * The Gateway Pundit * by Mike LaChance

    August 22, 2026

    JD Vance Tears Into Minnesota Governor Tim Walz for Trying to Protect a Child Predator (VIDEO) * The Gateway Pundit * by Mike LaChance

    August 22, 2026

    Trump Plans To Campaign For Months Before The Midterm

    August 22, 2026
  • Health

    Cannabis Use Disorder Is Rising— Public Health Needs To Catch Up

    August 21, 2026

    New clues emerge in direction of RFK Jr.’s vaccine policy changes

    August 21, 2026

    Ebola vaccine, Meta glasses, prostate cancer: Morning Rounds

    August 21, 2026

    What We Can Learn From Taiwan And Egypt About Ending Endemic Disease

    August 21, 2026

    Science, risks and data behind focal therapy for prostate cancer

    August 21, 2026
  • World

    Homeland Security Sends First 20 Deportees to Liberia

    August 22, 2026

    Court Cuts $50M Judgment Against Infowars’ Alex Jones Over Falsely Labeling Newtown Killings A Hoax

    August 22, 2026

    U.S. Academic Who Exposed Alleged Jason Arday Plagiarism Suspended

    August 22, 2026

    Hayden Panettiere’s Ex Releases Statement Following Her Death

    August 22, 2026

    Kim Jong-un’s Sister Mocks South Korea, Confirms Brother’s Relationship with Trump Is ‘Excellent’

    August 22, 2026
  • Business

    ATF Rule Could Cause Classic Showdown Between Mom And Pop Shops Versus Online Retailers

    July 10, 2026

    Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers)

    July 9, 2026

    The Agency Elizabeth Warren Built Now Advances Trump’s Agenda

    July 9, 2026

    Meta To Shell Out Billions For New AI Data Center Outside US

    July 9, 2026

    How Big Banks Are Scheming To Jack Up Your Fees

    July 8, 2026
  • Finance

    Warren Buffett sends investors 10-word stock market warning

    August 22, 2026

    I’m 44 with $1.3 million in my 401(k) — can I stop contributing and still retire in 15 years?

    August 22, 2026

    Bond market sends rates scrambling

    August 22, 2026

    Silver pushes higher on weaker dollar

    August 22, 2026

    Cryptos continue rally sparked by Treasury repurchase announcement

    August 22, 2026
  • Tech

    TikTok Agrees to $400 Million Settlement over Child Privacy Violations

    August 22, 2026

    James Talarico Shuts Out Local News at Campaign Event

    August 22, 2026

    Darth Vader Shows Up at San Diego City Council Meeting to Mock Flock Cameras

    August 22, 2026

    ‘Grand Theft Auto 6’ Clips Point to Leakers Having Full Playable Build of Blockbuster Game

    August 21, 2026

    Meta Whistleblower Testifies Meta Took ‘Don’t Ask, Don’t Tell’ Approach to Child Safety

    August 21, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»The India-US Nuclear Deal: Untying the Gordian Knot of Nuclear Liability 
Finance

The India-US Nuclear Deal: Untying the Gordian Knot of Nuclear Liability 

April 10, 2025No Comments9 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
The India-US Nuclear Deal: Untying the Gordian Knot of Nuclear Liability 
Share
Facebook Twitter LinkedIn Pinterest Email

It’s been almost 20 years since India and the United States announced the launch of a civil nuclear cooperation initiative. That laid the framework for the epochal India-U.S. nuclear deal, a watershed moment in the bilateral relations between the two countries. The deal ended India’s decades-long nuclear isolation, allowing it to resume civil nuclear cooperation while implicitly being recognized as a responsible nuclear-weapons state outside the Nuclear Nonproliferation Treaty (NPT) – a big shift in U.S. policy that drew sharp criticism for undermining long-standing nonproliferation norms. 

This agreement is now back in the spotlight after many lost years of unrealized potential. A United States firm, Holtec International, has been greenlit by the U.S. Department of Energy to jointly build and design nuclear reactors in India. This is a significant breakthrough, since under the deal, U.S. firms could only export nuclear reactors to India and not engage in any design or manufacturing process. 

This important regulatory clearance for Holtec International comes against the backdrop of recent high-level meetings between Indian Prime Minister Narendra Modi and U.S. President Donald Trump, during the former’s visit to the United States in early 2025. In a tacit acknowledgement of the lack of progress to date, both sides expressed their renewed commitment to the full implementation of the agreement. In addition, both sides welcomed New Delhi’s decision to take up amendments to its Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act (CLNDA) of 2010 as part of India’s broader efforts to advance its new Nuclear Energy Mission, announced as part of the country’s 2025-2026 Union Budget. 

Twenty years on, while it is clear that the India-U.S. nuclear deal has not weakened the global nonproliferation regime as claimed by critics, the full potential and promise of it is yet to be realized. Most significantly, the deal did not lead to the set-up of U.S.-designed reactors in India. Among the many hurdles, a key issue has been India’s nuclear liability law. Amending the long-controversial CLNDA, the nuclear liability law of India, is a welcome move that could be the key to fully reviving the deal by aligning it with international norms and restoring the confidence of U.S. suppliers entering the Indian nuclear energy market.

The Nuclear Liability Backdrop

If foreign suppliers, particularly private cooperatives, were to enter the Indian nuclear energy sector, India needed a clear framework for dealing with liability issues in the event of a nuclear accident. Until then, it was understood that all liability issues were the responsibility of the central government, as it owned and operated all nuclear facilities. In signing the nuclear deal with the United States, India agreed to first sign and ratify the Convention on Supplementary Compensation (CSC), which required the establishment of a clear domestic liability framework. In addition, since India is not a party to the NPT or any of the international nuclear liability conventions, the government felt it necessary to draft legislation to incentivize both domestic and foreign suppliers to participate in the country’s nuclear power expansion. 

See also  Ex-Raider Ruggs Taking Plea Deal, Prison in Fatal DUI Crash

The Indian government passed the CLNDA in September 2010. However, this act went beyond the international standards such as those set by the CSC, which requires all liability burdens to be placed solely on the power plant operator (not the supplier) to provide compensation to victims in case of a nuclear accident. The CLNDA also holds suppliers liable. What this means is that operators have the right to seek legal recourse against its suppliers in case of a nuclear accident on grounds of faulty or defective technology or components. 

It was not the original intention of the Manmohan Singh government at the time to enact such a unique law. The Singh government had initially sought legislation in line with the said international standards. On May 7, 2010, the bill was introduced in the Lok Sabha, the lower house of the Indian Parliament. Coincidentally, at the same time, the Supreme Court delivered a decision on the deadly 1984 Bhopal gas tragedy. This decision brought back painful memories for the public, and the fact that there was no regulatory framework in place to hold the U.S. company Union Carbide accountable was uncomfortably glaring. 

The timing of the decision allowed the opposition, the Bharatiya Janata Party (BJP), to press for more accountability for suppliers. Arun Jaitley, leader of the BJP opposition, stated in Parliament: 

As long as these plants are to be operated… either by the government or by the public sector, why must the government of India and the public sector take the liability if the mistake is committed by some third party? The equipment may be defective; the equipment may have a latent or patent defect…that is why, it compelled me to say that we turn our law upside down.

The draft bill was hotly debated in the Parliament on several issues such as liability thresholds of the operator, maximum liability, and exemption of suppliers from liability charges. In the end, Section 17 of the Act provided the operator the “right to recourse” from suppliers. The Bhopal gas tragedy was the primary reason for the inclusion of Section 17(b). It says:

17. Operator’s right of recourse. – The operator of the nuclear installation, after paying the compensation for nuclear damage in accordance with section 6, shall have a right of recourse where –

…

(b) the nuclear incident has resulted as a consequence of an act of supplier or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services;

Since the Singh government lacked an absolute majority in the Parliament, the bill was subject to many revisions on account of the BJP. The resulting law now accepted the supplier’s liability: “Thus, Section 17(b) of the bill introduced the concept of supplier liability, a ‘watershed moment in international nuclear liability jurisprudence,’ given the current norm of assigning nuclear liability ‘exclusively to operators.’” 

See also  This Simple but Effective Fund Is 2023’s Most Popular ETF

After establishing its domestic liability framework, India signed the CSC in October 2010 and ratified it in February 2016.

Aftermath

The resulting law drew widespread criticism from foreign suppliers as well as supporters of India’s nuclear power expansion. It raised doubts about how India would secure the advanced reactors and components that were initially expected to be the early results of the India-U.S. nuclear deal. 

U.S. suppliers like GE Hitachi and Westinghouse were hesitant to engage in nuclear commerce in India for fear of liability claims and did not want to undertake any risk. They argued that such a law set a wrong precedent by allowing the operator to sue the supplier “for absolute, unlimited, and non-delegable liability that could prevent them from taking insurance cover and bankrupt them in case of a nuclear accident.” It was not just private U.S. suppliers who opposed the act, but also suppliers from France and Russia as well. 

To ameliorate these concerns, the Indian government created the Indian Nuclear Insurance Pool (INIP) “with a capacity of 1500 crore [15 billion] rupees to provide insurance to cover the liability as prescribed under the CLNDA 2010.” In 2015, the government tried to provide a workaround to the act by claiming that the supplier’s liability would not be a mandatory part of the contracts signed with foreign suppliers. While the Russian state-owned Rosatom has accepted these assurances due to protections from their government, U.S. suppliers do not enjoy the same immunity and have still been hesitant. 

Moving Forward

The recent approval for Holtec International to build its flagship small modular reactors in India is a long-awaited breakthrough – an early but significant sign that the original promise of the deal is finally beginning to be realized. The online readout announcing the authorization also showcases this optimism: 

We understand that the GOI is actively working on legislation to permit private sector investment in the nuclear sector and to align the suppliers’ financial exposure with global norms… With the necessary legislation passed by Lok Sabha, we believe that the nuclear renaissance, now sweeping the world, will arrive in that vast land transforming its clean energy generation landscape.

The Modi government currently enjoys a majority in both houses of the Parliament. Continuing the momentum created by the government’s Union Budget speech, the amendment process has already begun – the Department of Atomic Energy has set up committees to discuss and propose amendments to the Atomic Energy Act and the CLNDA. However, the opposition has a relatively stronger presence compared to previous terms and opposes the amendment. The opposition accuses the BJP government of taking a “U-turn” from its previous stance. Despite the unfortunate likelihood of a repeat of debates on the same issues discussed almost 15 years ago, it seems unlikely that the amendment will not be adopted.

See also  AAPL, TSLA, NFLX, BBBY and more

There is more to look forward to soon. In December 2024, there were some intermittent discussions between the Indian government and Westinghouse to finalize the construction of six AP1000 reactors for the Kovvada nuclear power plant in the Indian state of Andhra Pradesh. This interest in collaboration traces its origins back to the nuclear deal itself but has been slow in materializing, particularly due to concerns on India’s liability laws. Hopefully, the proposed amendment can provide the necessary impetus to fast-track this dialogue. 

Similarly, in February 2025, India and France signed a declaration of intent to partner on advanced and small modular reactors. On India’s side, “it will be necessary to communicate transparently with the private sector on the progress of proposed changes and the regulatory process so that they can better plan for implementation and potential obstacles.” This will set the stage for more suppliers to win contracts in India’s nuclear sector and allay previous fears about liability.

Originally conceived in the late 1940s and 1950s to financially protect and encourage supplier participation in the nascent nuclear sector, operator liability is now firmly established as a global norm. As India seeks to multiply its nuclear power output from 8,180 MWe to 100 GWe by 2047, the full implementation of the India-U.S. nuclear deal has never been more timely or crucial. Fifteen years ago, it was the BJP that opposed the CLNDA in its nascent stages, and 10 years ago it said there was no proposal to amend the law. Now, one can only hope that the change in stance reflects the government’s full commitment to expanding India’s nuclear energy program for a cleaner and a more sustainable future.

Deal Gordian IndiaUS Knot Liability Nuclear Untying
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Warren Buffett sends investors 10-word stock market warning

August 22, 2026

I’m 44 with $1.3 million in my 401(k) — can I stop contributing and still retire in 15 years?

August 22, 2026

Bond market sends rates scrambling

August 22, 2026

Silver pushes higher on weaker dollar

August 22, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

AI Chatbot Encouraged Man to Commit Suicide

April 7, 2023

“Played it like it was his fifth match”

July 21, 2023

[Watch] Australian captain Pat Cummins lands England major blow with Joe Root’s wicket before lunch on Day 4

July 9, 2023

French Minister Marlene Schiappa Appears On Front Cover Of Playboy

April 3, 2023
Don't Miss

Warren Buffett sends investors 10-word stock market warning

Finance August 22, 2026

The man who has bought more American stocks than almost anyone alive just compared the…

Karoline Leavitt Reveals What Her New Job Will Be After Leaving the White House * The Gateway Pundit * by Cullen Linebarger

August 22, 2026

House Dems I Talk to ‘Really Worried’ About Being ‘Beholden’ to Democratic Socialists if Dems Narrowly Take House

August 22, 2026

TikTok Agrees to $400 Million Settlement over Child Privacy Violations

August 22, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,399)
  • Entertainment (6,411)
  • Finance (4,691)
  • Health (2,775)
  • Lifestyle (1,921)
  • Politics (4,324)
  • Sports (5,124)
  • Tech (2,544)
  • Uncategorized (4)
  • World (6,542)
Our Picks

Writers Strike: IATSE Crowd Gathers in Solidarity at Fox Studios

May 13, 2023

Starz and Crunchyroll Team for Discounted Bundle on Amazon’s Prime Video

July 29, 2026

Iran Bombs Chinese Company Building in Kuwait, Killing One

August 1, 2026
Popular Posts

Warren Buffett sends investors 10-word stock market warning

August 22, 2026

Karoline Leavitt Reveals What Her New Job Will Be After Leaving the White House * The Gateway Pundit * by Cullen Linebarger

August 22, 2026

House Dems I Talk to ‘Really Worried’ About Being ‘Beholden’ to Democratic Socialists if Dems Narrowly Take House

August 22, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.