India Eases Nuclear Liability to Boost U.S. Collaborations

India is planning to amend its nuclear liability laws to attract U.S. firms by capping accident-related penalties on equipment suppliers. This move aligns with international norms and aims to expand nuclear power capacity. The change could ease negotiations for a U.S.-India trade deal and maintain India's net-zero commitments.

India is set to reform its nuclear liability laws, capping accident-related penalties on equipment suppliers, to entice U.S. firms that have previously stayed away due to risks of unlimited exposure. Government sources reveal this move is intended to significantly boost nuclear power production and catalyze trade and tariff negotiations with the United States.

The Department of Atomic Energy has drafted a law that aligns with international standards by removing a clause exposing suppliers to limitless liability. The amendment is crucial for advancing U.S.-India trade talks aiming to increase bilateral trade to $500 billion by 2030. Sources confirm the government's confidence in passing the amendments in the upcoming monsoon session of parliament.

The changes aim to address the concerns of U.S. companies like General Electric and Westinghouse, previously deterred by India's stringent laws. India's 2010 liability law, influenced by the 1984 Bhopal disaster, had left U.S. firms at a disadvantage compared to Russian and French counterparts. Now, India hopes to leverage nuclear power to meet energy demands without compromising its climate commitments.

(With inputs from agencies.)