India clears air on nuclear liability

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Clearing the air on nuclear liability and the understanding with the US, India on Sunday laid out guidelines for companies and governments.

The FAQs, put out by Indian ministry of external affairs (MEA) are to be used by companies to negotiate commercial contracts to restart India’s civil nuclear sector.

The FAQs released on Sunday morning are also intended to answer questions swirling around after India and US reached a nuclear understanding during Obama’s visit.

For starters, Section 17 of the Liability Act (CLNDA) stays. This clarification was necessary to set the record straight for those who believe foreign companies will be exempt from liability. The operator will bear the main brunt of liability claims, but they have the option (it is not mandatory) to act against a supplier if they find an intent to cause damage or defective parts. This particular right is enjoyed by the operator, but it will have to be built into the contract.

“This provision is to be read along with/in the context of the relevant clause in the contract between the operator and supplier on product liability. It is open for the operator and the supplier to agree on the terms of their contract.” This, the government clarified, is compliant with the Vienna convention on supplementary compensation (CSC).

Most important, the government has clarified that the “right to recourse” is an “enabling” provision. “In other words it permits but does not require an operator to include in the contract or exercise a right of recourse.”

It also means that in the present international environment, there cannot be an “us versus them” approach between operators and suppliers. Given the international experience of the Gulf oil spill and Fukushima, both operator and supplier have to be brought under one umbrella, because the victim has to be put first.

While it remains to be seen whether companies agree with the Indian government, MEA said the US-Japanese companies GE-Hitachi and Westinghouse-Toshiba were part of the contact group discussions between US and India. As TOI reported, the contact group, will continue to maintain oversight on nuclear negotiations and will be monitored by the top offices in both countries.

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Islamuddin Jureet, a spokesman for Afghanistan’s ministry of refugees and repatriation, said officials from both countries would meet next week to discuss the situation.

“Afghan refugees have been living in neighbouring Pakistan for decades, and they were never involved in any terrorist attacks,” he said.

3 COMMENTS

  1. After couple of days of the much hyped US President Obama visit, we have now the FAQs about the Indian Nuclear Liability Law and the Indo-US nuclear deal. We have been answered in a more sophisticated manner which is not understandable to a common man. There is a question that how can India erodes the chances of nuclear accident or disaster after very recent Fukushima. In this whole recent debate which have been generated from nuclear liability law and foreign investors, the risk to peoples’ lives have been rarely mentioned. We simply want nuclear as much as possible no matters what happen to Indian residents in case of nuclear mishap.

  2. How cruel and ruthless Indian government and nuclear authorities seem to be playing their role when the most important and delicate issue is under question. Civil Liability law where denotes flaw and failed clauses at the same time it puts huge responsibility over the issuance authority to make the clauses credible enough to be not objected by the suppliers and the rest of the foreign companies. But it seems like India for making the country stuffed and making it stomach filled up to mouth with nuclear very easily ignoring the important and life costing aspects of the law.

  3. Russia, which also hopes to construct several nuclear power plants in India in the coming years, has also reportedly told Indian officials that it will not accept any liability for the supply of equipment and other material it provides to India’s nuclear sector. It means, all the states have issues with India in nuclear business.

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