This Article is From Mar 16, 2010

Tactical retreat by Govt on N-Liability Bill

New Delhi: Parliament became a political battleground again on Monday. Minutes before the controversial Nuclear Liability Bill was scheduled to be introduced, the government suddenly announced its decision to postpone it. This sent a united Opposition in attack mode again.

"If the government suddenly decides not to introduce the Bill today, and conveys this to you, it is your right. I am not disagreeing with that. However, it is also their duty to tell the House why they are not doing it today," senior BJP leader L K Advani said.

The tactical retreat is being seen as forced by the need to pass the Finance Bill smoothly. So what changed overnight?

Sources say that by 10:30 this morning, the Lok Sabha Speaker had received as many as 15 objections to the Bill from the Opposition. By 10:45 am, once a Cabinet meeting ended, the government wrote to the Speaker saying the Bill would be deferred. The government was worried about its numbers after the Women's Reservation Bill and will now table the Nuclear Bill after the Finance Bill is through.

But what makes the Bill so politically volatile? Some opponents say it will take India back to the days of the Bhopal Gas tragedy where a horrific gas leak that killed thousands still allowed Union Carbide to get away lightly.

At the heart of controversy is a fundamental question: What happens if there is a nuclear accident? At the moment India has no law that pins liability, or even offers insurance. And as several nuclear reactors are in the pipeline, including one coming up this year, India needs a liability regime.

The strongest criticism is that foreign suppliers will not be liable at all if there is an accident. Only the operator is liable. Also, the Bill caps the liability of the operator at Rs 500 crore, or $110 million dollars, which critics say is too low.

However, in 1989, the government settled with Union Carbide the Bhopal disaster for a much higher amount -- $470 million. Any damages beyond Rs 500 crore will be paid for by the government, which will pay up to Rs 2100 crore in total compensation. In other words, the taxpayer pays.

Another controversial clause is that no compensation can be claimed after 10 years have lapsed after an accident. Here the government argues that this is the international norm.

And the Opposition's criticism is that this Bill is being pushed through under American pressure since US companies, which are about to start nuclear projects worth billions, don't want to face a lawsuit.

"The government is in no hurry to pass the Nuclear Liability Bill and will first try to remove the doubts surrounding it," said Prithviraj Chavan, Minister of State for Science and Technology.
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