This Article is From Aug 22, 2010

Nuclear Liability Bill amendment: Tougher to nail suppliers?

New Delhi: Wednesday could be another stormy day in the Parliament when the government tables the N liability bill draft, this time with yet another change. The BJP has told NDTV that they will not allow it.

"We are very clear that the scope of 17(b) cannot be diluted. We need that to be addressed and if that is being diluted by this amendment which the government has cleared in the cabinet, and which is most likely to come to the Parliament tomorrow, BJP will stand up and object to it," said BJP Spokesperson Nirmala Sitharaman.

The Cabinet may have cleared the Nuclear Liability Bill, but NDTV has learnt that it has modified the language in such a way that suppliers will be liable only if they cause an incident intentionally. (Read: Cabinet clears N-Liability Bill, contentious word 'and' removed)

Sources have told NDTV that Clause 17(b) of the bill now says:

The right to recourse where "the nuclear incident has resulted as a consequence of an act of supplier or his employees, done with the intent to cause nuclear damage, and such act includes supply of equipment or material with patent or latent defects or sub-standard services".

Sources have also said that the bill is likely to be tabled in Parliament next week. (Read: Probe ordered into amendment)

This amendment could create fresh trouble for the Nuclear Liability bill. What the cabinet's version has done effectively, is that one would have to prove that there was an intent on part of the supplier to willfully cause damage, which makes it much more difficult to hold them liable, in case of an accident.

The CPI's National Secretary, D Raja told NDTV, " We do not agree with the proposal. Willful or not willful, the suppliers are responsible. The Left has been insisting suppliers should be responsible."

"When we had discussed this with Mr Pranab Mukherjee, we had made our position clear that suppliers and operators must be made liable, and liability should not be capped. Government should draw lessons from the Bhopal experience, it cannot play with the life of the people. This position is being taken with huge risk to public security, and the government should realise this," he added.

What is the Nuclear Liability Bill?

  • The Indo-US Civilian Nuclear Agreement was enacted in October, 2008

  • It facilitates civilian nuclear partnership between the United States and India

  • As part of the agreement, India will separate its civilian and military nuclear facilities and put civilian facilities under the International Atomic Energy Agency (IAEA) inspection

  • To attract US private companies involved in nuclear commerce, it is necessary to pass the Nuclear Liability Bill which defines the financial and legal liabilities upon involved groups, manufacturers, operators and the government in case of a nuclear accident 

  • In this case the suppliers and builders will be the US private companies and the operator will be the Nuclear Power Corporation of India Limited

  • The present debate on the bill pertains to clauses which seem to stake national interests in case of a nuclear accident

  • After much opposition, the liability for nuclear suppliers has raised and capped at Rs 1500 crore
.