Nuclear Liability Bill

• To faciliate the nuclear commerce and attract United State Private Companies, Civil Liability for Nuclear Damage Bill also known as Nuclear Liability Bill was required to be passed.
• This Nuclear Liability Bill defines the financial and legal liabilities upon the involved parties viz. manufacturers, operators and government in case a nuclear accident occurs. The suppliers are US coompanies, Operator is Nuclear Power Corporation of India and Government is Indian Government. Some of these companies are General Electric and Westinghous.
• The Draft Bill was prepared by the UPA government and was approved by the cabinet on November 19, 2009. It was supposed to be tabled in the parliament in March 2010. However the bill was deferred by the Government.

Financial Liabilities:

• The bill deals with liabilities in case of an accident. However the bill is to be passed to activate Indo-US Civil Nuclear Agreeemnt.
• Besides, India’s ambitious and indigenous nuclear power program to achieve the goal of 20,000 MWe electricity produced through nuclear energy by 2020 and even a bigger target of 60,000 MWe by 2032, India needs involvement of foreign private business in manufacturing and supply of nuclear reactors. Once the bill is passed India becomes a member of international convention on liability in the civil nuclear arena.

What is Absurd in the Bill ?

• The clause 6 of the bill deals with the maximum financial liability in case a nuclear accident occurs in nuclear reactors. The maximum Financial Liability is the rupee equivalent of 300 million special drawing rights (SDRs). This amount is equivalent to approximately USD 458 million and in Indian Currency Rs. 2,087 crore.
• Opposition and other organizations that resist to this bill say that this amount is considerably meagre comparison to the destruction caused by a nuclear accident.

In United States 1957 version of the Price-Anderson Act — the world’s first comprehensive nuclear liability law — prescribed the operator’s liability at $60 million and the government’s share of liability at $500 million. This act has undergone several amendments over the period of the time and presently absolves the State from any liability below $10.761 billion in cover and places the onus entirely on the operator, without any cost to public or government and without fault needing to be proven.

Ultimate Burden on Indian Public:

• There is an absurd clause 7 in the bill which deals with the liability of each group.
• Clause 7 says that the operator will have to pay Rs. 500 crore and the remaining amount will be paid by the Indian government.
• Since the Operator is Nuclear Power Corporation of India Ltd. (NPCIL) and it is owned by the Government Itself.
• The clause further says that the operator can claim the liabilities form the manufacturer and supplier if it is mentioned in the contract.
• However, the maximum amount payable by the suppliers who are the foreign companies will be a very less amount.
• So ultimately the bill lays almost all the burden to Indian Public, who will pay ultimately even if a mistake is committed by the foreign companies.

Further, there are clause 17, 18 & 35 , which not only seem to be absurd but also seem trussing the Indian counterparts. Clause 17 says that only operator can sue the manufacturers and suppliers in case of any mishap. The bill does not suggest anything for the victims of the mishap. The vicitims can’t sue anyone. Clause 18 says that claims can’t be made after 10 years of a mishap. This is less time as compared to the effects of the accident. Clause 35 says that the Civil Courts of the country will not have authority to trial the responsible groups. It suggests India to be divided into zones , establishment of Nuclear Damage Claims Commissions in each zones.

Conclusion:
Since it provides for just a paltry compensation in the event of an accident, compared with similar laws in the US, EU and Canada , India’s Nuclear Liability Bill has run into trouble.

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