Nuclear Energy in India, Map, Advantages and Disadvantages

Context: The Finance Minister announced the government’s intention to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. This is expected to favor U.S. interests by potentially indemnifying nuclear suppliers.

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• The U.S. government and U.S. Ambassador Eric Garcetti has been lobbying India to amend the law to make it easier for U.S. companies to sell nuclear reactors to India.
• U.S. administrations have been unhappy that the law places some minimal responsibilities on nuclear manufacturers in the event of an accident.

What is Nuclear Energy?

Nuclear energy comes from the core of an atom, which is the tiny part that makes up everything around us. There is a lot of energy in this core, held together by something called the “strong force.” Nuclear power plants harness this energy to generate electricity for homes and businesses.

To use nuclear energy for electricity, we need to release it by splitting atoms in a process called nuclear fission. A nuclear reactor, or power plant, has machines that control this splitting to produce electricity. The fuel used in reactors is small pellets made from uranium. When uranium atoms are split they release tiny particles that cause more uranium atoms to break, creating a chain reaction. This reaction produces a lot of heat.

Uranium is the most widely used mineral for generating nuclear energy. The place where the process of nuclear fission takes place to generate electricity is called a nuclear power plant. Nuclear energy is considered a non-renewable energy source. This is because the materials used to generate nuclear energy are exhaustible.

Current Nuclear Energy Landscape

• Use: Only 31 countries currently use nuclear energy for generating electricity, with 7 more aiming to join.
• Operational Reactors: Decreased from 437 in 2003 to 411 now.

• Electricity Generation Capacity: Increased marginally from 360 GW in 2003 to 371 GW now.
• Global Share: Nuclear energy accounts for less than 10% of global commercial electricity generation, with its share declining for almost three decades.

Nuclear Energy in India

India acknowledges the role of nuclear energy in its plans to reduce carbon emissions (decarbonization).

Global Distribution of Nuclear Energy

The largest producers of nuclear power in the world are the United States, the countries of the Commonwealth of Independent States, Canada, the United Kingdom, France, Japan, and Germany. In the United States, nuclear energy makes up about 9% of all energy produced. In the United Kingdom, it provides 50% of the electricity, while in Japan, it accounts for 15%, and in Germany, 7%. India is leading among developing countries, getting 3% of its energy from nuclear power plants.

Incidents Influencing Laws

• Bhopal Gas Disaster (1984): Led to the Supreme Court’s “absolute liability” ruling in the Delhi Oleum gas leak case (1986), holding enterprises engaged in hazardous activities strictly liable for harm.
• Fukushima Nuclear Disaster (2011): Highlighted the catastrophic economic potential of nuclear accidents. Estimated cleanup costs ranged from ¥35 trillion to ¥80 trillion (₹20 lakh crore to ₹46 lakh crore). The accident also exposed design flaws (Mark 1 containment).
• Three Mile Island Accident (1979): Revealed that the reactor supplier, Babcock & Wilcox, had identified a safety hazard but failed to provide operators with clear instructions to mitigate it.

Evolution of Indian Law

• Dilution of “Absolute Liability” (2010): The government created a special law for nuclear accidents, diluting the principle of absolute liability.
  • Channeling of Liability: Primary liability channelled to the operator (NPCIL).
  • Liability Cap: Capped at ₹1,500 crore.
• “Right of Recourse”: It allows the operator to recoup compensation from the supplier if the accident was caused bya  “supply of equipment with patent or latent defects or sub-standard services.”

Nuclear Energy Advantages

There are several advantages to using nuclear energy as a source of power, including:

Reliability

Nuclear power plants operate around the clock, generating consistent and reliable power, even during extreme weather conditions.

Efficiency

Nuclear power plants are very efficient, turning over 60% of the fuel’s energy into electricity. In comparison, other energy sources often convert less than 40%.

They also produce low emissions. Unlike traditional power sources like coal or natural gas, nuclear power plants do not release harmful pollutants into the environment, making them a cleaner energy option.

Abundance

Uranium, the fuel used in nuclear reactors, is common and easy to find, making it a good source of energy. Nuclear energy is a popular way to generate electricity for homes, businesses, and other buildings. It doesn’t release greenhouse gases or pollute the air.

Nuclear energy uses less fuel, like uranium and plutonium, meaning a small amount of material can create a lot of energy compared to other sources like coal or oil. Nuclear energy is not just for electricity in healthcare, radiation helps diagnose and treat diseases like cancer. In farming, nuclear radiation is used to change crops genetically.

Medical

Nuclear energy is used in medical procedures, such as cancer treatments, to destroy cancer cells.

Industrial

Nuclear energy is used to heat industrial processes, such as the production of ceramics, plastics, and petrochemicals.

Research

Nuclear energy is used in scientific research, including the study of genetics, astronomy, and geology.

Nuclear Energy Disadvantages

Despite its many advantages, there are also several disadvantages to using nuclear energy, including:

Cost

Building and maintaining a nuclear power plant can be extremely expensive.

Safety

Nuclear power plants pose a significant safety risk, as a nuclear meltdown or accident can have serious environmental and health consequences.

Waste

Nuclear power plants produce highly radioactive waste that must be carefully managed and stored for many years. The generation of nuclear energy produces radioactive waste which is extremely toxic and harmful to the environment. There are concerns over the transportation, storage, and disposal of radioactive waste.

Proliferation

The technology used to generate nuclear energy can also be used to create nuclear weapons, leading to the risk of nuclear proliferation.

Exhaustible

Materials used to generate nuclear energy are exhaustible. For example, uranium. The nuclear sector is now financially burdened by stringent rules governing maintenance, staffing levels, operator training, and plant inspections. The general public sometimes views commercial nuclear power as a dangerous or unstable process.

Nuclear Power Plants

Some of the largest and most advanced nuclear power plants in the world include:

• Kashiwazaki-Kariwa in Japan
• Paluel in France
• Bruce Power in Canada
• Palo Verde in the United States
• India

Nuclear Energy Fusion

Nuclear fusion is the process of combining two or more atomic nuclei to form a heavier nucleus. This process releases energy, which can be used to generate electricity. Unlike nuclear fission, which splits atomic nuclei and can create harmful radiation and waste, fusion does not produce these dangerous byproducts.

Arguments Against Indemnifying Nuclear Suppliers

• Reduces Accountability and Safety Standards: If suppliers are indemnified, they have no financial incentive to ensure the highest safety standards.
  • Past accidents (Fukushima, Three Mile Island) show that design flaws in reactors can lead to catastrophic failures.
• Violates the Polluter Pays Principle: The “absolute liability” doctrine established by the Supreme Court (after Bhopal Gas Tragedy) holds hazardous industries fully responsible for damages.
  • Indemnifying suppliers contradicts this legal principle and shifts the burden to taxpayers.
• Financial Burden on Indian Government & Taxpayers: If a nuclear disaster occurs, the entire compensation and cleanup costs (potentially in lakhs of crores) would fall on the Indian government.
  • This is unfair, as foreign suppliers would walk away without any financial responsibility.
• Dangerous Precedent for Future Industrial Accidents: Indemnifying nuclear suppliers could set a precedent for other hazardous industries (chemical plants, oil refineries, etc.) to demand similar legal immunity.
  • This weakens corporate accountability across sectors.
• Contradicts India’s 2010 Nuclear Liability Law: The Civil Liability for Nuclear Damage Act (2010) ensures that suppliers can be held liable for defective equipment.
  • Indemnification would completely remove this critical protection.
• Encourages Reckless Business Practices: When suppliers know they won’t be held liable, they may cut corners in design, safety, and manufacturing to maximize profits.
  • General Electric (GE) ignored safety warnings about its Mark 1 reactor design, which contributed to the Fukushima disaster.

Problems with American Reactors (AP1000)

• Excessively High Costs: The AP1000 reactors in the U.S. saw cost overruns of 250%, with a final price tag of $36.8 billion for two reactors in Georgia.
  • Given India’s lower electricity tariffs, recovering such high costs would be economically unviable.
• Unfinished and Abandoned Projects: Two AP1000 reactors in South Carolina were abandoned after $9 billion was wasted on delays and design flaws.
  • This raises concerns about the feasibility of such reactors in India.
• Technical and Safety Issues: The Westinghouse AP1000 design has faced regulatory and safety challenges in multiple countries, including the U.S. and China.
  • In China, the first AP1000 reactors faced major delays due to critical component failures.
• Dependency on Foreign Technology: India has a strong indigenous nuclear program (PHWRs, Fast Breeder Reactors).
  • Importing AP1000 reactors makes India dependent on U.S. technology, which could be restricted due to geopolitical tensions.
• Not Competitive with Renewables: The per-unit electricity cost from AP1000 reactors is several times higher than that of solar, wind, and domestic nuclear reactors.
  • Investing in expensive reactors locks India into costly electricity for decades.
• No Proven Track Record in India: Unlike Pressurized Heavy Water Reactors (PHWRs) that India has successfully deployed, AP1000 reactors have no operational history in India.
  • This increases risks related to local adaptation, maintenance, and long-term sustainability.

Way Forward: Strengthening India’s Nuclear Liability Framework

• Increase Liability Cap: Adjust the compensation limit to align with real-world disaster costs, ensuring sufficient victim relief.
• Stronger Regulatory Oversight: Establish an independent nuclear safety authority with enforcement power over both operators and suppliers.
• Mandatory Supplier Contributions to Insurance Pool: Require nuclear suppliers to contribute to the liability fund, ensuring shared financial responsibility.
• Transparency in Nuclear Agreements: Disclose all nuclear procurement agreements to the public to ensure accountability in government decisions.
• Focus on Indigenous Nuclear Technology: Prioritize investment in Indian-developed reactors (e.g., PHWRs) rather than costly and risky foreign imports.
• Public Consultation on Policy Amendments: Before making changes to the liability law, hold public discussions to consider safety, financial, and environmental concerns.

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