New Delhi:
On the eve of a key bilateral meeting, Russia said the cost of the next phase of the Kudankulam atomic project would escalate if it has to bear additional liabilities arising from a possible nuclear accident. With differences in perception over India's civil nuclear liability law, the negotiations on the units III and IV of the Kudankulam Nuclear Power Plant n Tamil Nadu have become a point of contention between Moscow and New Delhi.
Russia has said that the row over its telecom firm Sistema after the cancellation of 2G licenses will have a "great repercussion" not only for bilateral cooperation but also for foreign investments into India. It hoped a solution that is acceptable to both parties can be reached.
"If there are several points that require additional assurances, of course, it will require additional money to be paid by India," visiting Russian Deputy Prime Minister Dmitry Rogozin told reporters in response to questions on the possibility of India bringing the two new units of the Kudankulam nuclear plant in Tamil Nadu under the ambit of its nuclear liability law.
Mr Rogozin along with External Affairs Minister S M Krishna will co-chair the meeting of the Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) today.
The nuclear liability law makes foreign suppliers liable for compensation in the event of accidents. Russia argues that the law should not apply to these units as the agreement on them predates the 2010 civil liability law, and could be seen as "grandfathered" by the original 1988 agreement while India has clearly stated that making an exception for Russia will amount to diluting its law which will encourage the US and France to seek similar exemptions, which it cannot afford.
The estimated cost of units III and IV is USD 6.4 billion, of which USD 3.4 billion will be taken care of by
Russian state credits.
Citing lessons learnt from 1986 Chernobyl nuclear accident, Mr Rogozin said Russian reactors provided to India were "state-of-the-art" and there need be no fears over it.
Noting that Sistema's project in India is "big" involving USD 3 billion, some part of which is state money, Mr Rogozin said it is not possible to renew the terms when the contract is concluded. "The Sistema contract was concluded based on Indian laws," he said.
He said the problems in Sistema's investments in India will have "great repercussion" for future cooperation not only for Russian partners but also for foreign investments to this country.
(With inputs from PTI)