THE DEBATE OVER NUCLEAR LIABILITY BILL

The Nuclear Liability Bill

The bill deals with the liabilities in case of a possible nuclear mishap. The bill is necessary to activate Indo-U.S. Civilian Nuclear Agreement. As the U.S. nuclear reactor manufacturing companies will require the liability bill to get insurance in their home state. After this bill becomes an act, India will become a member of the international convention on liability in the civil nuclear arena.

Debate over the Bill

The bill is certainly debatable as it has certain clauses which indirectly let free the manufacturers and the builders of the nuclear reactors from any financial and legal liability.

Clause 6

According to the clause 6 of the nuclear liability bill, the maximum financial liability in case a nuclear accident occurs in nuclear reactors has been set at the rupee equivalent of 300 million special drawing rights (SDRs) which is equal to $458 million (Rs. 2,087 crore). The amount is considered meagre in comparison to the destruction caused by a nuclear accident. A same kind of law in U.S. has set the financial liability for such accident at $10.5 billion.

Clause 7

The clause 7 defines the share of financial liability for each of the culpable groups. It states that the operator will have to pay Rs. 500 crore and the remaining amount will be paid by the Indian government. This is considered as a ridiculous point as the operator will be the Nuclear Power Corporation of India Ltd. (NPCIL) which in itself is a government owned facility.

The operator can claim the liabilities form the manufacturer and supplier if it is mentioned in the contract. But the maximum amount payable by the foreign companies will be a very little sum of Rs. 500 crore. Ultimately, it is the Indian taxpayer who will have to give the money even when the accident has occurred due to others mistakes.

Clause 17

This clause deals with the legal binding of the culpable groups in case of a nuclear accident. It does allow only the operator (NPCIL) to sue the manufacturers and suppliers. The victims won’t be able to sue anyone. Practically, no one is considered legally liable because the recourse taken by the operator will yield only Rs. 500 crore at maximum.

Clause 18

Clause 18 of the nuclear liability bill limits the time to make a claim within 10 years. This is very less as compared to the long term damage that may be caused due to a nuclear accident.

Clause 35

Clause 35 extends the legal binding that the responsible groups may have to face. The operator or the responsible persons in case of a nuclear accident will undergo the trial under Nuclear Damage Claims Commissions and no civil court is given the authority. The country will be divided into zones with each zone having a Claims Commissioner. In the U.S. counterpart – the Price Anderson Act, the lawsuits and criminal proceedings goes under the U.S. courts.

Other Aspects of the Nuclear Liability Bill

Other than these clauses there are some general questions which are being raised upon the bill.

• The foreign made reactors will not be operated by the private companies but the operator will be NPCIL only. Thus the electricity produced will be state subsidized which indirectly is the taxpayer’s money. In case, private sector is allowed to operate, the electricity rates would be low due to the competition between different operators.
• Even finance ministry and environment ministry has raised question on this bill keeping in view the financial and environmental sustainability. A nuclear mishap can cause negative long term health and environmental effects.
• M V Ramana, an eminent nuclear scientist said that the Atomic Energy Regulatory Board (AERB) will take care of the quality of the imported enriched Uranium nuclear reactors. But, the board lacks expertise in such reactors.
• Since India has developed its nuclear technology in using natural Uranium and Thorium as a nuclear fuel through indigenous efforts, the import of enriched Uranium reactors is considered to slow down the process of nuclear research and development in India.