1. Participation of the Private Sector

The Act allows private entities — including companies, joint ventures, or any person specifically authorised by the Central Government — to engage in India’s nuclear energy sector.

They may undertake activities such as:

• Operation of nuclear power plants and generation of electricity
• Manufacturing of nuclear equipment
• Fabrication of nuclear fuel, including conversion processes
• Refining and enrichment of Uranium-235 up to a prescribed limit
• Production, handling, processing, or disposal of other notified radioactive substances

However, any activity involving radiation exposure requires prior safety clearance from the designated regulatory authority.

2. Activities Reserved for the Central Government

Strategically sensitive components of the nuclear fuel cycle remain under the exclusive control of the Central Government or its wholly owned entities.

These include:

• Enrichment of radioactive materials beyond specified limits
• Management and disposal of spent nuclear fuel
• Other critical fuel-cycle operations deemed sensitive

This ensures national security and strategic oversight.

3. Statutory Status to the Atomic Energy Regulatory Board (AERB)

The Act grants statutory backing to the Atomic Energy Regulatory Board (AERB) to enhance its autonomy and regulatory authority.

• Originally constituted in 1983 under the Atomic Energy Act
• Now accountable to Parliament rather than functioning solely under executive control
• Responsible for nuclear safety, radiation protection, emergency response planning, and quality assurance in civilian nuclear facilities

This provision strengthens institutional independence in nuclear regulation.

4. Introduction of a New Civil Liability Framework

The legislation establishes a structured and graded liability mechanism for nuclear operators.

Liability Limits:

• ₹3,000 crore for large nuclear power plants
• ₹1,500 crore for medium-sized plants
• ₹100 crore for Small Modular Reactors (SMRs)

Any liability exceeding these limits will be covered by the Government through a dedicated Nuclear Liability Fund.

Importantly, the Act eliminates supplier liability, unlike the Civil Liability for Nuclear Damage Act, 2010 (CLNDA), which allowed claims against suppliers for defective equipment.

5. Regulation of Non-Power Nuclear Applications

The Act also regulates the peaceful use of nuclear and radiation technologies in:

• Healthcare
• Agriculture
• Industry
• Scientific research
• Other civilian applications

This ensures safety compliance beyond electricity generation.

6. Licensing and Safety Regulation

A comprehensive framework is introduced for:

• Granting licences
• Suspending licences
• Cancelling licences
• Issuing safety authorisations

Limited exemptions may be provided for research, development, and innovation activities under defined conditions.

7. Acquisition Powers of the Central Government

The Central Government is vested with exclusive rights to acquire assets or facilities in specific circumstances related to nuclear activities, ensuring strategic control where required.

8. Dispute Resolution Framework

The Act establishes:

• Atomic Energy Redressal Advisory Council

To facilitate settlement of disputes relating to nuclear operations.

• Nuclear Damage Claims Commission

To adjudicate cases involving major nuclear damage and ensure timely compensation.

9. Territorial Scope of Compensation

Compensation provisions extend to nuclear damage occurring outside India if the incident originates within Indian territory, subject to prescribed conditions.

10. Appellate Mechanism

Appeals against decisions under the Act will lie before the Appellate Tribunal for Electricity (constituted under the Electricity Act, 2003).