File photograph of Prime Minister Manmohan
Singh and US President Barack Obama
A day after India notified its rules on nuclear liability, government officials have taken a tough line regarding American objections, which they anticipate will remain sticking points. India's rules are likely to feature prominently at the Prime Minister Manmohan Singh's meeting tomorrow with President Barack Obama on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit here.
Government sources say India's rules may not address US concerns, but the US has to accept that Indian law will apply and that the Indian government has to address the concerns of a post-Fukushima reality and protect the rights of its citizens.
Government sources also say they don't believe that the Indian liability law is a huge obstacle to doing business but it's now up to American firms to decide if they want to come to India. Washington thinks India's liability law is too tough on suppliers of equipment and material and the issue has been a contentious one between the two countries for a while.
Under the new rules, ordinary citizens can sue for any amount, even several years after an accident. But in a concession that could please Washington and has upset the Opposition at home, if the operator of a nuclear facility wants to claim damages from a supplier, there is a cap of Rs 1500 crore and a five-year limit from the date of the accident. This clause kicks in only if the supplier agrees to liability in a written contract.
"This is definitely a very serious dilution in the sense that it absolves the supplier of any such responsibility beyond the initial period of five years", said the Left's Sitaramy Yechury. "I think the very fact that these rules have been brought about and announced on the eve of the PM's meeting with President Obama...that itself makes it suspect that this is only to appease the Americans and the American corporates," he added.
Right after his meeting with Mr Obama, Dr Singh will meet Chinese Premier Wen Jiabao. Government sources say increasing Chinese activity in the South China Sea will come up in talks between the two leaders. Apart from several South East Asian nations, India too has been at the receiving end of Chinese anger over an oil exploration pact recently signed with Vietnam in these disputed waters. India will stress on the freedom of navigation and right to passage in these waters. Increasing Chinese troop presence on the border may also come up, though Indian officials played down any major concerns. Earlier this week, an official Chinese daily said India's move to increase troops would create tension. Government sources also say they are very close to an agreement with China on a mechanism "to ensure peace and tranquillity".