Nuclear Energy: The Risks of Weakening Liability Laws

Introduction

The recent announcement by Finance Minister Nirmala Sitharaman regarding amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act has sparked concerns. These amendments are seen as an effort to appease foreign nuclear manufacturers by reducing their liability in case of accidents. However, such changes could have serious consequences for India's nuclear safety and financial burden.

Understanding Nuclear Liability and Its Importance

The Civil Liability for Nuclear Damage Act was introduced to ensure that suppliers of nuclear reactors are held accountable in case of accidents. This is crucial because:

• Nuclear accidents can cause massive destruction, as seen in Fukushima (2011) and Chernobyl (1986).
• The financial cost of nuclear disasters can run into trillions, making liability laws essential for protecting public funds.
• Weakening liability laws might encourage suppliers to cut corners on safety.

Lessons from Past Nuclear Disasters

The Fukushima disaster in Japan exposed serious safety lapses in reactor design. Studies revealed that design defects contributed significantly to the accident, yet the supplier was not held accountable under Japanese liability laws. If India follows a similar path by reducing supplier liability, it could face similar risks.

The Bhopal gas tragedy (1984) is another grim reminder of the dangers of weak corporate accountability. In that case, minimal corporate liability led to a lack of adequate compensation for victims. Strong liability laws are essential to prevent such outcomes.

Potential Consequences of Weakening Liability Laws

Increased Financial Burden on India

• The cost of a nuclear disaster can exceed billions of dollars.
• Reducing supplier liability means the Indian government (and taxpayers) will bear the costs in case of an accident.

Compromised Safety Standards

• Without strict liability, nuclear suppliers may not prioritize safety.
• Historical data shows that design flaws in reactors, such as those at Fukushima, were ignored due to weak liability laws.

Higher Electricity Costs

• Importing expensive reactors with reduced supplier accountability can lead to higher electricity prices in India.
• India has cheaper and safer renewable energy alternatives.

The Political and Economic Context

The move to amend nuclear liability laws is being pushed under international pressure. The U.S. has lobbied for these changes to benefit American nuclear suppliers. However, such changes could be detrimental to India's economic interests. Small modular reactor designs, such as those proposed by U.S. firms, may be even less economically viable for India due to their high costs and limited economies of scale.

What Should India Do?

• Maintain Strong Liability Laws: Ensuring suppliers are held accountable will lead to better safety measures.
• Invest in Renewable Energy: Solar and wind energy are more cost-effective and pose no nuclear accident risks.
• Strengthen Domestic Nuclear R&D: Instead of relying on expensive foreign reactors, India should develop its own nuclear technology with high safety standards.

Conclusion

Weakening nuclear liability laws poses significant risks to India's financial stability, public safety, and energy security. Instead of prioritizing the interests of foreign corporations, the Indian government should focus on sustainable and safe energy policies. Strict liability laws, transparent regulations, and investment in renewable energy can ensure a safer and economically sound future for India.

By : team atharvaexamwise