Context: India and France have agreed to boost cooperation in “high-end technology sectors” and have discussed long-pending civil nuclear cooperation issues ahead of the Indian Prime Minister’s France visit in February 2025.
Relevance of the Topic: Prelims: Key facts about India France Civil Nuclear Cooperation; Civil Liability for Nuclear Damage Act, 2010.
India France Civil Nuclear Cooperation
- An agreement on civil nuclear cooperation was signed between India and France in 2008. The agreement was signed shortly after India got the waiver from the Nuclear Suppliers Group (NSG) to engage in civil nuclear trade.
- Nuclear cooperation between India & France:
- France is involved in the construction of the Jaitapur Nuclear Power Project in Maharashtra. The progress however has been slow (agreed in 2009).
- The two countries have also agreed to establish a partnership on Small Modular Reactors (SMR) and Advanced Modular Reactors (AMR).
NSG India-specific Agreement:
- In 2008, the Nuclear Suppliers Group (NSG) agreed on an India-specific exemption to its nuclear export guidelines after complex negotiations.
- Following the NSG India-specific agreement, civil nuclear cooperation agreements have since been signed with the US, Russia, France, Australia and Kazakhstan, among other countries.
- Note: India is not a member of the NSG, the main reason being its refusal to sign the Nuclear Non Proliferation Treaty (NPT).
Impediments in India-France Nuclear Cooperation
Despite the robust framework for nuclear cooperation between India and France, several impediments hinder the progress of their collaboration:
- Regulatory Challenges:
- The Indian regulatory framework for nuclear energy is stringent, it requires extensive safety certifications and compliance with international standards.
- E.g., Process of certifying European Pressurised Reactor (EPR) technology has been lengthy, which has slowed down project timelines and created uncertainties for investors.
- Nuclear Liability law of India:
- India’s Nuclear Liability law (Civil Liability for Nuclear Damage Act, 2010) has been a barrier to the growth of the nuclear energy industry.
- India’s strict liability law places the burden of compensation for nuclear accidents on the plant operator, which can deter private companies from investing in nuclear power.
- Also, according to the Act, the liability can be shifted from the operator to the vendor or supplier in case the accident is due to equipment or material.
- This has created apprehension among potential foreign suppliers, delaying India’s ambitious nuclear energy plans. E.g., Nuclear liability is the major issue why the deal to install French EPRs at Jaitapur has not made progress.
- Financial Considerations: The high costs associated with building and maintaining nuclear power plants pose a financial challenge. The Jaitapur project (with an estimated capacity of 990 MW) requires large investment.
- Technological transfer: While both countries have committed to enhancing technological collaboration, concerns about intellectual property rights and technology transfer can create friction.
- Shift in Focus: India and France are exploring cooperation in Small Modular Reactors (SMRs), potentially diverting focus from Jaitapur.
Read More: India – France: Strategic partners
Civil Liability for Nuclear Damage Act (CLNDA), 2010:
- India enacted CLNDA in 2010 to provide a quick compensation mechanism for victims of a nuclear accident.
- The Act establishes a strict and no-fault liability for nuclear plant operators, meaning they are liable for damage regardless of fault.
- However, the operator of the nuclear installation, after paying the compensation for nuclear damage shall have the right to recourse where-
- 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.
- The nuclear incident has resulted from the act of commission or omission of an individual done with the intent to cause nuclear damage.
- The operator will have to maintain a financial security to cover its maximum liability of ₹1,500 crore for civil nuclear damage and requires the operator to cover liability through insurance or other financial security.
- In case the damage claims exceed ₹1,500 crore, the gap will be bridged by the Central Government. The government liability amounts to the rupee equivalent of 300 million Special Drawing Rights (SDRs) or about ₹2,100 to ₹2,300 crore.