New Delhi: India is moving forward with plans to create a nuclear liability fund aimed at covering compensation claims that exceed 15 billion rupees (around $169 million) in the event of a major nuclear accident. The initiative is designed to address risk-sharing concerns among global suppliers and private companies, potentially unlocking long-delayed private and foreign investment in the country’s nuclear sector.

The proposed statutory fund, which will be included in a new atomic energy bill, is intended to supplement an operator’s capped liability, replacing the current ad hoc payout system. The government is expected to introduce the legislation in Parliament during the winter session in December.

This development is part of India’s broader strategy to expand nuclear power capacity from the existing 8.2 gigawatts to 100 gigawatts by 2047. To support this growth, the government is considering allowing foreign companies to hold up to 49% equity in domestic nuclear power plants. Amendments to the Civil Liability for Nuclear Damage Act of 2010 are also being planned to cap accident-related liabilities for nuclear equipment suppliers, a move expected to attract investment from global companies such as General Electric and Westinghouse Electric, which have previously avoided the Indian market due to unlimited liability risks.

In addition, India is exploring the development of small modular reactors to meet specialized power requirements. The Nuclear Power Corporation of India Ltd has extended the deadline for submitting proposals for Bharat Small Reactors to September 30, 2025, amid growing interest from companies seeking cleaner energy solutions.

These measures reflect India’s commitment to strengthening its nuclear energy sector, aligning with international norms, and attracting both domestic and international investment to achieve its ambitious energy targets.