Current Affairs: Passage of the Day - 12 February 2025 | Current Affairs & General Knowledge - CLAT PDF Download

Directions: Read the passage carefully and answer the questions that follow.
Ahead of Prime Minister Narendra Modi’s visit to Paris and Washington beginning Monday (February 10, 2025), the government’s announcement that it would amend its Civil Liability for Nuclear Damages Act and the Atomic Energy Act, is likely to enthuse American and French nuclear power companies, whose projects have been deadlocked due to legal worries for more than 15 years. However, experts who welcomed the decision called for more clarity on the amendments proposed.
The announcement, which marked a sharp u-turn from the government’s position in 2015 was made in the Budget Speech on February 1. In particular it could facilitate progress for Electricite de France (EDF) MoU to build six EPR1650 in Maharashtra at Jaitapur that was signed in 2009 (with Areva), and American Westinghouse Electric Company’s (WEC) MoU to build six AP1000 reactors in Andhra Pradesh at Kovvada, signed in 2012. In addition, it is expected to help India tap into new nuclear power technologies particularly for Small Modular Reactors (SMR), now gaining popularity in developed economies.
Ahead of Prime Minister Narendra Modi’s visit to Paris and Washington beginning Monday (February 10, 2025), the government’s announcement that it would amend its Civil Liability for Nuclear Damages Act and the Atomic Energy Act, is likely to enthuse American and French nuclear power companies, whose projects have been deadlocked due to legal worries for more than 15 years. However, experts who welcomed the decision called for more clarity on the amendments proposed.
The announcement, which marked a sharp u-turn from the government’s position in 2015 was made in the Budget Speech on February 1. In particular it could facilitate progress for Electricite de France (EDF) MoU to build six EPR1650 in Maharashtra at Jaitapur that was signed in 2009 (with Areva), and American Westinghouse Electric Company’s (WEC) MoU to build six AP1000 reactors in Andhra Pradesh at Kovvada, signed in 2012. In addition, it is expected to help India tap into new nuclear power technologies particularly for Small Modular Reactors (SMR), now gaining popularity in developed economies.
“For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up,” by Finance Minister Nirmala Sitharaman had said in the speech highlighting the need for “at least 100 GW” of nuclear energy by 2047, and making an outlay of ₹20,000 crores for the development of five SMRs to be operationalized in India by 2033. India at present has a nuclear power capacity of 6780 MW comprising of 22 reactors, and the only foreign operator in India is Russia’s Rosatom. 
Thus far, western international nuclear power companies have said that clauses in the CLNDA (2010 law) are unacceptable, mandate a high degree of liability for suppliers on nuclear power components, and contradict the international Convention for Supplementary Compensation for Nuclear Damage (CSC), that focuses only on the immediate liability of operators. The clauses were inserted in 2012, following heated debates in parliament, where the then-in opposition NDA members had accused the government of letting Western companies off from liability, citing the Union Carbide-Bhopal Gas leak case that killed thousands in 1984. The debate had also followed the devastating  nuclear leak in Fukushima  following a tsunami off Japan’s coast.
“This law was amended by the [UPA] government just to satisfy the opposition at the time, even though it was clear that the international operators legal liability clause would create problems down the road,” Shyam Saran former Foreign Secretary, who was PM’s Special Envoy for Nuclear Affairs and Climate Change at the time, told The Hindu. “We still don’t know what kind of amendments the government is now planning, but it is hoped that these will be done in consultation with international partners so that we can now move ahead on projects, while ensuring the liability issue is dealt with in the contracts India signs,” he added.
The Ministry of External Affairs declined to comment on what the proposed amendments would entail. 
Significantly, in a “Frequently Asked Questions” memorandum issued by the MEA exactly a decade ago, in February 2015, the government had said that there was “no proposal to amend the Act or the Rules”.  The FAQ had been issued just after a Republic-Day visit to India by U.S. President Barack Obama, when Indian officials had announced that after five years of deadlocked negotiations “the nuclear deal is done”. According to the FAQ, “Based on the presentations by the Indian side, and the discussion thereon [with the US officials], there is a general understanding that India’s CLND law is compatible with the [International] Convention for Supplementary Compensation for Nuclear Damage (CSC)”. However, the “understanding” did not result in any serious contracts for nuclear power. In 2019, India also set up an “insurance pool” of ₹1,500 crores to help operators and suppliers with payments through reinsurance, but this too had failed to win over the power companies abroad. 
“Thus the pragmatic way out is to break the deadlock by amending the CLNDA to bring it on par with international conventions to which India itself is a party— so that there is a  clear legal standard in our domestic legislation that is aligned with international standards and is applicable equally to all our international partners and domestic industry,” said Venkatesh Verma, former Ambassador to Russia, who was part of negotiations for all India’s civil nuclear agreements and led the MEA’s Disarmament and International Security Affairs (D&ISA) desk. 
With the Trump administration keen to encourage U.S. energy exports, for both oil and LNG, as well as nuclear power, and France and India negotiating deals for SMR projects, the issue will be on the agenda as Mr. Modi travels to France (Feb. 10-12) and U.S. (Feb. 12-13) this week. It remains to be seen whether the government’s plans to amend the laws will finally forge the breakthrough required, two decades after India signed civil nuclear deals with U.S. and France. 
[Excerpt from TH "India’s Amendments to Nuclear Liability Laws" Dated 12/02/25]

Q1: What is the primary objective of amending the Civil Liability for Nuclear Damages Act (CLNDA) and the Atomic Energy Act?
(a) To increase domestic investments in nuclear energy
(b) To facilitate foreign nuclear investments and revive stalled projects
(c) To reduce India’s dependence on nuclear energy
(d) To increase the compensation limit for nuclear accidents

View Answer  

Ans: (b)
Sol: The amendments aim to encourage foreign nuclear investments, especially from American and French companies, which faced legal hurdles.

Q2: Which foreign companies have planned nuclear projects in India that were stalled due to legal issues?
(a) Rosatom and Toshiba
(b) Areva and Siemens
(c) Electricite de France (EDF) and Westinghouse Electric Company (WEC)
(d) General Electric and Hitachi

View Answer  

Ans: (c)
Sol: EDF plans to build six reactors in Jaitapur, while WEC plans to build six reactors in Kovvada.

Q3: What is the compensation limit set for nuclear plant operators under the CLNDA, 2010?
(a) ₹500 crore
(b) ₹1,000 crore
(c) ₹1,500 crore
(d) ₹2,000 crore

View Answer  

Ans: (c)
Sol: The CLNDA law states that nuclear operators are strictly liable for up to ₹1,500 crore, which they must cover through insurance or financial security.

Q4: Why is the supplier liability clause in CLNDA controversial?
(a) It allows suppliers to be sued in foreign courts
(b) It increases liability risks, discouraging foreign and domestic investments
(c) It exempts suppliers from responsibility in nuclear accidents
(d) It mandates that all suppliers must be government-owned

View Answer  

Ans: (b)
Sol: The clause allows operators to claim compensation from suppliers for faulty equipment or poor-quality services, leading to investment hesitations.

Q5: What is India’s current nuclear power capacity, and what is its target by 2047?
(a) 5,000 MW, targeting 50 GW
(b) 6,780 MW, targeting 100 GW
(c) 10,000 MW, targeting 200 GW
(d) 8,500 MW, targeting 150 GW

View Answer  

Ans: (b)
Sol: India currently generates 6,780 MW from 22 reactors and aims to achieve 100 GW by 2047.