India's liability law will not be amended: Union Government

Union Government has notified that India’s Civil Liability Nuclear Damage (CLND) Act, 2010 or CLND rules will not be amended.
In this regard, a detailed paper titled ‘Frequently Asked Questions and Answers on Civil Liability for Nuclear Damage Act 2010 and related issues‘ was released by Ministry of External Affairs (MEA).
This paper says that the foreign suppliers of the reactors cannot be sued for damages by the victims of a nuclear accident.
However, the suppliers can be held liable by the operator, who has the right of recourse that could be operationalized through the contract between the operator and the supplier.
Governments decision comes after the understanding was reached with the US, during President Barack Obama’s recent visit.

About Civil Liability Nuclear Damage (CLND) Act, 2010

• CLND Act, 2010 was passed by the Parliament in August 2010.
• This Act limits the liability of the operator in case of nuclear accident and secures the operator the right to recourse under certain circumstances and provides a mechanism to compensate victims of nuclear damage.
• In November 2011 under the parent Act, Civil Liability for Nuclear Damage Rules were notified. These Rules stipulate certain mandatory clauses for contracts that secure the operator the right to recourse.
• It also prescribe the procedure to provide compensation to victims in case of nuclear incidents.

Month: Current Affairs - February, 2015