Bussiness line
Government - Policy
Govt may raise Rs 500-cr cap on nuclear liability

Move to build consensus in Parliament.

Anil Sasi

New Delhi, July 25

The Centre could propose a handful of changes in the Civil Nuclear Liability Bill 2010, including possibly enlarging the scope of operator's liability.

This would be to ensure that it can successfully pilot the contentious legislation in the forthcoming monsoon session of Parliament beginning on Monday.

The Bill has been under review with the Parliamentary Standing Committee on Science and Technology, Environment and Forests. After a series of consultations on the Bill, the Government is likely to propose a hike in the Rs 500-crore cap on the liability stipulated in it as a consensus measure, official sources involved in the exercise said.

Besides, indications are that plans to dilute a provision that allows the operator's right to recourse against foreign reactor suppliers in the event of a nuclear mishap is unlikely to be pursued. The operator's right of recourse against suppliers, provided under 17(b) in the initial draft of the Bill, was subsequently put under the scanner by the Centre in light of pressure from US reactor vendors. This clause is unlikely to be tinkered with, sources said.

The Section 6 Debate

The Section 6 of the Bill, which quantifies the liabilities, pegs the maximum liability in respect of each nuclear incident at 300 million Special Drawing Rights (SDRs) or around Rs 2,050 crore. The liability of an operator for each nuclear incident has been capped at Rs 500 crore.

The Centre has been under fire from all quarters on the issue, with the Opposition parties saying the liability limits are too low by international standards.

While the operator's liability could be raised, the overall national liability cap is unlikely to be tinkered with since the Government wants to accede to the International Atomic Energy Agency's Convention on Supplementary Compensation (CSC), which provide 300 million SDRs as the cap.

The Bill was introduced in Parliament in the last session and was referred to the Parliamentary panel for discussion and for recommended changes. While the suggestions are not binding on the Centre, some of the changes are likely to be incorporated considering the prevailing view that the draft does not adequately protect interest of victims in the event of a mishap.

Both the Bharatiya Janata Party (BJP) and the Left parties have said they are willing to consider the Bill if the liability limits are raised. Experts have also pointed to the need to delink the Nuclear Liability Bill from any decision on India joining the CSC.

Deposing before the Standing Committee, the former Department of Atomic Energy Secretary, Dr P.K. Iyengar, said he, however, supported the idea of fixing faulty equipment responsibility on foreign suppliers to individual contracts entered with them rather than including it in the Bill.