05 February 2025 : Indian Express Editorial Analysis

1. A nuclear recharge

(Source – Indian Express, Section – The Ideas Page – Page No. – 13)

Analysis of the news:

India’s Lost Nuclear Leadership

• India was once a pioneer in nuclear energy, being the second Asian nation to establish a nuclear power plant in 1969, after Japan and long before China.
• The country’s early investments in nuclear research and development during the 1950s and 1960s positioned it for leadership in atomic energy.
• However, despite setting an ambitious goal of generating 10,000 MW of nuclear power by 2000, India has failed to realize its potential, with current capacity stagnating at 8,200 MW—far behind China’s 58,000 MW and South Korea’s 32,000 MW.
• Repeatedly revised nuclear targets over the past decade have failed to materialize, prompting the FM to set a fresh goal of 1,00,000 MW by 2047.
• Achieving this target necessitates amendments to the Atomic Energy Act (1962) and the Civil Liability for Nuclear Damage Act (2010), which have been major roadblocks to nuclear expansion.

From Early Gains to Decades of Stagnation

• India’s nuclear journey initially benefited from private funding and international collaboration.
• Homi Bhabha secured investment from the Tatas even before the atomic age formally began.
• However, by the 1970s, global geopolitical changes and domestic policy missteps stalled progress.
• One major setback was the Nuclear Non-Proliferation Treaty (NPT) of 1970, which imposed restrictions on nuclear technology transfer and left India outside the global nuclear framework.
• India’s failure to conduct a nuclear test before 1967 placed it on the wrong side of this divide.
• Despite reports that U.S. President John F. Kennedy had offered nuclear testing support in 1963—an opportunity India declined—its later 1974 test resulted in international sanctions rather than strategic advantage.

The Fallout of India’s Nuclear Policy Confusion

• India’s 1974 nuclear test worsened its situation. Pakistan, with China’s assistance, rapidly developed its nuclear arsenal, while India faced tightening sanctions.
• Stuck in a limbo—neither a recognized nuclear power nor a compliant non-nuclear state—India struggled for decades to break free from global nuclear restrictions.
• It was not until 1998, when India conducted five nuclear tests and officially declared itself a nuclear-weapon state, that the narrative began to shift.
• Despite initial sanctions, these tests paved the way for reconciliation with the U.S. and eventual civilian nuclear cooperation.
• Between 2005 and 2008, the U.S. actively worked to integrate India into the global nuclear order.

The Self-Inflicted Setback: CLNDA and Its Impact

• The Civil Liability for Nuclear Damage Act (CLNDA) of 2010 proved to be a major stumbling block for India’s nuclear expansion.
• Unlike global norms, which channel liability solely to plant operators to ensure swift compensation for accidents, India’s law allows operators to sue component suppliers in case of mishaps.
• This provision has deterred both domestic and foreign investment in nuclear energy.
• Despite the Modi government’s efforts since 2014 to address these concerns, meaningful private-sector participation remains absent.
• Without amending the CLNDA, expanding nuclear power generation and ensuring a smooth transition to green energy will remain a challenge.

Breaking the Government Monopoly in Atomic Energy

• Beyond CLNDA, a deeper structural issue plagues India’s nuclear sector: government monopoly under the Atomic Energy Act of 1962.
• While this centralized control may have made sense in the past, today it restricts capital inflow and innovation.
• The Department of Atomic Energy (DAE) remains entirely dependent on government funding, preventing the emergence of a robust nuclear industry ecosystem.
• Companies like Tata, L&T, BHEL, and Godrej, which already supply crucial components for atomic plants, are now capable of leading nuclear power projects independently.
• Learning from India’s recent space sector liberalization, where regulatory changes spurred private-sector participation, a similar approach in nuclear energy could unlock significant growth.

The Way Forward:

• Amending the Atomic Energy Act should lay the foundation for India’s technological evolution.
• Government bodies like DAE, ISRO, and DRDO should focus on research and innovation while allowing private players to handle production and commercial deployment.
• The monopolistic model of state-controlled nuclear energy has outlived its purpose and now hampers technological progress.

By fostering a competitive nuclear industry, India can finally realize its nuclear potential, reduce energy dependence, and secure its position as a global leader in atomic energy.