The Civil Liability for Nuclear Damage Act, 2010 (CLNDA) is an Act of the Parliament of India, enacted to provide a legal framework for civil liability in the event of a nuclear accident and ensure prompt compensation to victims. The Act was passed on 25 August 2010 and came into force on 11 November 2011.
The need for the CLNDA arose because India lacked a comprehensive domestic law on civil liability for nuclear damage before 2010. It was a crucial step to facilitate India's civil nuclear cooperation agreements, particularly after the 2008 India–US Nuclear Deal, and to align India's legal framework with international conventions like the Convention on Supplementary Compensation for Nuclear Damage (CSC), which India ratified in 2016. The Act was also motivated by the need to reassure citizens about compensation and to legally bind the operator and the government to provide relief.
The Act establishes a No-Fault Liability Regime by channeling primary responsibility to the operator of the nuclear installation, meaning victims do not need to prove negligence to claim compensation (Section 4). The operator's liability is capped at ₹1,500 crore for nuclear reactors of 10 MW or more, and the operator must maintain insurance or financial security to cover this amount. If the damage claims exceed the operator's limit, the Central Government is liable for the excess amount, up to the rupee equivalent of 300 million Special Drawing Rights (SDRs). A distinctive feature of the CLNDA is the provision for the operator's Right of Recourse against a supplier under Section 17, which can be invoked if the nuclear incident is caused by a supplier's defective equipment, sub-standard services, or an act of the supplier's employee. The Act also established the Nuclear Damage Claims Commission to adjudicate claims and ensure equitable compensation.
The CLNDA is closely connected to the Atomic Energy Act, 1962, as the CLNDA made amendments to it to allow for private investment in the Indian nuclear power program. The provision for supplier liability under Section 17 has been a major point of contention, as it deviates from international norms that typically place liability solely on the operator, leading to concerns among foreign nuclear suppliers and delays in projects. The government has recently announced plans to amend the CLNDA and the Atomic Energy Act to address these supplier liability concerns and encourage private sector participation, aiming to align the law more closely with international conventions.