Debate Over Nuclear Liability Bill 2010 India

Controversial Clauses in Civil Liability for Nuclear Damage Bill

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The Civil Liability for Nuclear Damage Bill has started a debate over some clauses in India, even before it is introduced in the Indian Parliament.

The Civil Liability for Nuclear Damage Bill also known as Nuclear Liability Bill, has strike up a heated debate in India. The bill will be presented in the Indian Parliament on Monday, March 15, 2010 after it has been given a nod by the ministerial cabinet of the UPA government in November last year.

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.

Peaceful Use of Nuclear Power

The technological developments in nuclear reactors have significantly reduced the probability of a serious nuclear catastrophe. Nuclear energy is considered as an environment friendly and sustainable source of energy. But, it is still necessary to keep in mind the negative aspects of the nuclear energy and measures must be taken for its peaceful use.

“I do not know what the third world war will be fought with, but the fourth world war will be fought with sticks and stones.” – Albert Einstein

References:

Brahma Chellaney, 'A radioactive Bill fraught with big risks', The Hindu, March 13, 2010.

'Minimum nuclear liability', DownToEarth.org.in.

Photo Credit: http://www.flickr.com/photos/paul_everett82/ / CC BY 2.0

Manoj Yadav, Manoj Yadav

Manoj Yadav - A working professional and a freelance writer by interest, I enjoy studying and writing about diverse issues and topics. Being a student ...

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11 Comments

Comments

Mar 15, 2010 3:52 PM
Guest :
From the questions raised it is quite obvious that the common man needs to be educated on the facts about nuclear energy in India. Rational thinking will only be possible when the complete truth is known. Political mindsets are not always driven by rationality but by ideologies. The country needs more visionary people to lift the standards of the common man.
Apr 2, 2010 3:07 PM
Guest :
Very Informative!
May 7, 2010 1:02 AM
Guest :
This article clears all the aspects especially the negative ones of the nuclear liability bill which if passed becomes act in the future.. As we being citizen of the country should be aware of the clauses of the Bill... Very straight forward and point based information
Jun 3, 2010 5:24 AM
Guest :
how can they draft a bill with so many loopholes? it just a symbolic act which wil only help the foreign companies secure the necessary insurance papers to start their operations in india. that`s all about the motive of the draft. as regarding the security cover it is supposed to provide, it is so shamefully meagre that it poses a question mark over the bill drafter`s real motive. and the fact that this amount too will be paid by the exchequer via backdoors is a cheating done by the govt. with it`s own people. in fact the high population density of india, and the resulting scope of damage in case of a calamity, demands that the liability amount be pegged higher than even that of the u.s.
in any case this bill should not be allowed to pass in it`s original form. but nevertheless the fact remains that we do not posess a nuclear liability law at all. thus the bill must be passed but only and only after the necessarry changes have been made.
Jun 3, 2010 5:25 AM
Guest :
good article..
Jun 8, 2010 5:38 AM
Guest :
Is anything done to protest this so called bill ??
Jun 10, 2010 8:47 AM
Manoj Yadav :
Please see "Government dilutes nuclear bill under U.S. pressure " The Hindu, June 10, 2010.

http://www.hindu.com/2010/06/10/stories/2010061057040100.htm


Aug 17, 2010 9:13 AM
Guest :
I can see 'Bhopal' repeating itself with a seamingly deliberate ignorance of a shameless government !
Aug 22, 2010 11:05 PM
Guest :
Very informative and in my opinion the author should write about the other clauses.
Sep 1, 2010 11:25 AM
Guest :
Really seeing, we need the bill with some changes in the above said clauses..
Apr 24, 2011 9:18 AM
Guest :
Having worked at a nuclear reactor for many years, I have developed a sense of trust for the technology. The energy situation that the world faces today is going to force the world to make some hard decisions on where needed energy is going to come from. Risk and risk management versus need is going to require great consideration. Nuclear generated electricity is just as needful as coal generated electricity. That we need electricity is something we must not forget. The question remains: At what risk? Should we place undue liability on a provider of a needed source of energy? Rightly or wrongly the liability question is going to be an important factor for nuclear power in India and elsewhere. The recent events in Japan should shed a great deal of light on the question of nuclear liability.

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