At the 23rd India-Russia summit-level talks today (December 5) between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, one of the topics that might have consumed more time was the further expansion of nuclear cooperation between the two countries.
In his much-talked-about interview with India Today on the eve of his trip to New Delhi, President Putin revealed that further collaboration in the nuclear field will be one of the “most significant” issues he will discuss with Prime Minister Modi.
He had said, “We are producers of the world’s most advanced and reliable equipment for nuclear power plants. The Russian company Rosatom builds and operates more nuclear reactors for nuclear power plants abroad than any other company in the world – 22 nuclear units. The well‑known facility and our joint project, the Kudankulam plant ( India) , is one of the leaders in this regard…..
“Russia is probably the only country in the world today capable of building – and actually does build – small nuclear power plants. Such plants are already operational in Russia, and we can make them either floating or ground-based. It’s an excellent option for specific regions where big power stations are not needed or where connecting electricity grids between generators and end-users isn’t feasible. These compact nuclear power modules can thus be deployed in isolated and hard-to-access locations.”
In fact, it was not a coincidence that yesterday (December 4), around the time Putin landed in Delhi, Rosatom announced the delivery of the first batch of nuclear fuel for the initial loading of the third reactor at the Kudankulam Nuclear Power Plant (KNPP) in Tamil Nadu.
The critical shipment was transported to the Kudankulam site via a dedicated cargo flight, landing on the day Putin arrived.
Reportedly, this shipment secures the lifetime fuel supply for both the under-construction third and fourth VVER-1000 reactors at KNPP, starting with the initial core loading for Unit 3.
It may be noted that the Kudankulam facility is the cornerstone of India’s civilian nuclear energy program, designed to house six VVER-1000 reactors with a total installed capacity of 6,000 MW. The first phase of the plant, consisting of Units 1 and 2, was already connected to the national power grid in 2013 and 2016, respectively.
Rosatom has noted that four other reactors, including the recently fueled Unit 3, are at various stages of construction.
Be that as it may, the timing of Rosatom’s delivery and Putin’s visit seems to have been well-planned from another angle. In the ongoing session of Parliament, Prime Minister Modi is reportedly in the process of amending India’s nuclear laws with the new Atomic Energy Bill, 2025.
These changes are part of an effort to achieve an ambitious target of 100 GW of nuclear power capacity by 2047. The primary goal of the proposed changes is to encourage private and foreign investment in the nuclear power sector, which has historically been a state monopoly.
Also, India’s Civil Liability for Nuclear Damage Act (CLNDA), 2010, is planned to be amended to address concerns from global suppliers regarding the “right of recourse” provision, which allows the operator to seek damages from the supplier in the event of an accident caused by faulty equipment. This provision has been a major deterrent for foreign companies.
India under Modi is actively enhancing its nuclear power capacity to meet growing energy demands and achieve environmental goals. The government has initiated steps to increase nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32.
This expansion plan includes the construction and commissioning of ten reactors, totalling 8,000 MW, across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh. Additionally, pre-project activities for ten more reactors have commenced, with plans for progressive completion by 2031-32.
In fact, a key highlight of India’s Budget 2025-26 was the launch of a Nuclear Energy Mission, focusing on research and development (R&D) of Small Modular Reactors (SMRs). The government has allocated ₹20,000 crore ($2.5B) for this initiative, aiming to develop at least five indigenously designed and operational SMRs by 2033.
And significantly, President Putin is also emphasising the possibility of such SMRs in India by pointing out that such plants are already operational in Russia and that Russia can even float them on the sea.
These can be suitable for specific industrial and remote regions in India, too, he thinks, as this provides Russia with a market for its cutting-edge innovations.
Another thing that Putin might have taken into account is that despite the trade hiccups between the United States and India, the Modi government has accorded in-principle approval to set up a 6 x 1208 MW nuclear power plant in cooperation with the Washington at Kovvada in Srikakulam district in the state of Andhra Pradesh.
The point is that Russia will not like its first-mover advantage in India’s nuclear energy market to be diluted by the entry of other foreign players, such as the U.S.
In fact, it is ironic that though the landmark India-US civil nuclear agreement of 2005 lifted the international isolation of India in the development of peaceful nuclear energy and lifted the international sanctions in this field even though India is not a party to the NPT, a unique status for India that was possible because of the then U.S. President George Bush, it is Russia, not America, that has reaped its real dividends.
American companies have not been able to enter India’s nuclear market because of CLANDA, which talks of compensation in the event of nuclear accidents in a plant.
CLNDA places responsibility for any nuclear accident with the operator, as is standard internationally, and limits total liability to around $450 million, or such higher amount that the Central government may specify by notification.
Operator liability is capped at Rs 1,500 crore ($285 million) or such higher amount that the Central government may notify, beyond which the Central government is liable, though the government liability amount is limited to the rupee equivalent of 300 million Special Drawing Rights (SDRs).
However, the bottleneck for the foreign companies is that CLNDA, even after compensation has been paid by the operator (or its insurers), allows, through its clause 17(b), the operator to have legal recourse to the supplier for up to 80 years after the plant starts up if in the opinion of an Indian court the “nuclear incident has resulted as a consequence of an act of supplier or its employee, which includes supply of equipment or material with patent or latent defects or sub-standard services.”
This clause giving the supplier recourse for an operational plant is said to be contrary to international conventions and to undermine the channeling principle fundamental to nuclear liability internationally. Besides, no limit has been set on suppliers’ liability. The supplier community has interpreted this provision to be ambiguous and one that renders it vulnerable to open-ended liability claims.
A second sticking point has been Section 46 of CLNDA, which states that the provisions of the Act ‘were in addition to, and not in derogation of, any other law for the time being in force’, leading to concerns among the suppliers that they could be subjected to multiple and concurrent liability claims. The Act, after all, does not prevent a person from bringing proceedings against the operator under any law other than this Act. That could even allow criminal liability to be pursued against the operator and the supplier, it is feared.
Obviously, all potential nuclear suppliers, including the U.S., to India have been unhappy. This, perhaps, has led the Modi government to consider amending the Act in Parliament.
However, unlike the U.S., Russia has taken advantage of the Modi government’s existing scheme for creating a nuclear insurance pool to meet any liability costs. Russia is the only country that has expanded its nuclear cooperation in India by installing additional reactors in Tamil Nadu (Kundakulam) after the enactment of CLNDA.
Each of Rosatom’s new units at the Kudankulam plant has been valued at $2.5 billion by India’s public sector General Insurance Company, with a 20-year insurance premium charged to cover Russia’s liability for an accident.
It is against this background that the joint statement following today’s summit deals with a separate heading on “Civil Nuclear Cooperation, Cooperation in Space”. But important to note that of the five paragraphs or points in this section, nuclear cooperation has been mentioned in four.
These are:
“The Sides confirmed their intention to broaden cooperation in nuclear energy, including fuel cycle, life cycle support for operating Kudankulam Nuclear Power Plant (KKNPP) and non-power applications, as well as to elaborate a new agenda of interaction in the field of peaceful use of atomic energy and related high technologies. The Sides noted the importance of cooperation in the peaceful uses of nuclear energy as a significant component of the strategic partnership, taking into account the plans of the Government of India to increase India’s nuclear energy capacity to 100 GW by 2047.
“The Sides welcomed the progress achieved in the implementation of KKNPP, including the construction of the remaining NPP ( Nuclear Power Plant) units, and agreed on adhering to the timeline for supplies of equipment and fuel.
“The Sides noted the importance of further discussion on the second site in India for NPP; the Indian Side will strive to finalize formal allotment of the second site in accordance with earlier signed agreements.
“The Sides agreed to accelerate technical and commercial discussions on the VVER ( Water Pressure Reactors) of the Russian design, research, and joint development of NPPs, localization and joint manufacturing of nuclear equipment and fuel assemblies for Russian-designed large capacity NPPs subject to terms and conditions as mutually agreeable”.
It seems that for Moscow, and this was quite apparent in Putin’s aforesaid interview, India should not be seen only as a lucrative market for Russia’s resources and technology.
Nuclear cooperation is seen by it in strategic terms. Strengthening ties with India provides Russia a strategic counterbalance amid evolving global geopolitics. Russia is using its position as one of the few countries capable of building a full spectrum of nuclear power plants (including large units and small modular reactors) to maintain influence and technological leadership in a key area of global energy transition.
- Author and veteran journalist Prakash Nanda is Chairman of the Editorial Board of the EurAsian Times and has been commenting on politics, foreign policy, and strategic affairs for nearly three decades. He is a former National Fellow of the Indian Council for Historical Research and a recipient of the Seoul Peace Prize Scholarship.
- CONTACT: prakash.nanda (at) hotmail.com
