Indo-US nuclear deal: Law that bars manufacturing here, Indian law on liability

Indo-US nuclear deal: Law that bars manufacturing here, Indian law on liability

Sub : Sci

Sec: Nuclear sector

Context:

• US National Security Advisor Jake Sullivan meets Jaishankar in Delhi as Biden administration prepares to hand over charge to Trump.
• One of the key objectives of the visit was to strengthen the US-India initiative on Critical and Emerging Technologies (iCET).

Legal Barriers to Indo-US Nuclear Collaboration:

1. 10CFR810 Authorization:

• The10CFR810 authorisation (Part 810 of the US Atomic Energy Act of 1954) governs the export of nuclear technology and equipment by US entities.
• The authorization allows US nuclear vendors to export equipment to countries like India under strict safeguards, but it prohibits the manufacturing of nuclear equipment or performing nuclear design work in India.
• India wants to be involved in the manufacturing value chain for nuclear projects, which includes co-producing nuclear components. The current limitation under 10CFR810 restricts India’s ability to participate fully in these efforts.

2. Civil Liability for Nuclear Damage Act, 2010:

• The Civil Liability for Nuclear Damage Act (2010) establishes a framework for compensating victims in case of a nuclear accident in India. It outlines liability for nuclear operators and the procedures for compensation.
• Foreign companies have expressed concerns over the act, particularly because it channels operator liability to equipment suppliers. This creates a risk for foreign vendors of being held liable for any nuclear accidents, which deters investment in India’s nuclear sector.

About iCET:

• U.S.-India initiative on Critical and Emerging Technology (iCET) was launched in 2022.
• It aims to elevate and expand Indo-U.S. strategic technology partnership and defence industrial cooperation between the governments, businesses, and academic institutions of the two countries.
• The initiative would help forge links between the government, academia, and industry in areas such as AI, quantum computing, 5G/6G, biotech, space, and semiconductors.
• The initiative will be spearheaded by the National Security Council Secretariat in India and the US National Security Council.

India’s Push for Nuclear collaboration:

• India is keen to position itself as a hub for manufacturing small modular reactors (SMRs). These reactors, with capacities between 30 MWe and 300 MWe, are seen as a cost-effective solution for nuclear power.
• While India has expertise in manufacturing Pressurised Heavy Water Reactors (PHWRs), the country’s reactor technology, based on heavy water and natural uranium, is becoming less compatible with the more globally dominant Light Water Reactors (LWRs).
• The US, along with Russia and France, are leaders in LWR technology, creating a potential avenue for collaboration.