2/27/2011 Nuclear Liability Bill - Wikipedia, the fr…

Nuclear Liability Bill

From Wikipedia, the free encyclopedia

The Civil Liability for Nuclear Damage Bill 2010 also known as Nuclear Liability Bill. This bill is passed
by both houses of Indian parliament. The Bill aims to provide a civil liability for nuclear damage and prompt
compensation to the victims of a nuclear incident through a nofault liability to the operator, appointment of
Claims Commissioner, establishment of Nuclear Damage Claims Commission and for matters connected
therewith or incidental thereto.[1]

This is one of the last steps needed to activate the 2008 Indo-U.S. civilian nuclear agreement as the United state
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.

The government has encountered fierce opposition when trying to push this bill through parliament on several
occasions. This is due to the fact that it contains several controversial clauses that the opposition parties claim to
be 'unconstitutional'.[2] The opposition believes the bill is being pushed through due to US pressure though this is
denied by the government.

The bill effectively caps the maximum amount of liability in case of each nuclear accident at
1,500 crore (US$325.5 million) to be paid by the operator of the nuclear plant.

The bill will require amendments in the Atomic Energy Act 1962 allowing private investment in the Indian
nuclear power program. The issue of an accident is sensitive in India, where a gas leak in a Union Carbide
factory in Bhopal city killed about 3,800 people in 1984 in one of the world's worst industrial disasters.

Contents
1 Necessity of the Nuclear Liability Bill
1.1 Clause 6
1.2 Clause 7
1.3 Clause 17
1.4 Clause 18
1.5 Clause 35
2 See also
3 External links
4 References

Necessity of the Nuclear Liability Bill

India has an ambitious goal to increase 5-fold the amount of electricity produced from nuclear power plants to
20,000 MWe 2020. This will be further increased to 63,000 MWe by 2032.[3] In this way, India will produce
25 percent of its electricity from nuclear power plants by 2050. India's present production of electricity through
nuclear power is 3981 MWe. To increase the share of nuclear power, foreign companies would need to be
involved in the manufacture and supply of nuclear reactors.

Although there is no international obligation for such a bill, in order to attract the US companies involved in
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nuclear commerce such as General Electric and Westinghouse, it is necessary to introduce a liability bill which
would help these private companies in getting insurance cover in their home state. Thus, the bill will help in the
realization of the Indo-U.S. Nuclear deal.[citation needed]

Another motive for the bill is to legally and financially bind the operator and the government to provide relief to
the affected population in the case of a nuclear accident.[citation needed]

Advances in nuclear technology have significantly reduced the probability of a nuclear catastrophe and is
considered an environment friendly and sustainable source of energy. However, it is still necessary to keep in
mind the negative aspects of the nuclear energy and measures must be taken for its peaceful use.

A major point of debate is the amount of financial assistance to be provided under such circumstances as it is
considered insufficient and unsatisfactory. Other than this, the bill contain certain clauses which if implemented
will let free the manufacturer and supplier legally and to a large extent financially as well.

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 1,500 crore (US$325.5 million). The amount is considered meagre in comparison to the
destruction caused by a nuclear accident. A similar law in US 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. If written into the
contract, the operator can claim the liabilities from the manufacturer and supplier. But the maximum amount
payable by the foreign companies will be limited to a meagre sum of Rs. 500 crore (just over $111 million).

This is considered as a moot point as the operator will be the Nuclear Power Corporation of India Ltd.
(NPCIL) which itself is a government owned facility. In other words, the government may have to foot the entire
bill thereby exonerating the manufacturer/supplier.

Clause 17
This clause deals with the legal binding of the culpable groups in case of a nuclear accident. It allows only the
operator (NPCIL) to sue the manufacturers and suppliers. Victims will not be able to sue anyone. In reality, no
one will be considered legally liable because the recourse taken by the operator will yield only
1,500 crore (US$325.5 million).

Clause 18
Clause 18 of the nuclear liability bill limits the time to make a claim within 10 years. This is considered to be too
short as there may be long term damage 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
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having a Claims Commissioner. This is in contrast to the US counterpart – the Price Anderson Act, in which
lawsuits and criminal proceedings proceed under the US courts.

Indian Cabinet Clears nuclear liability Bill: The government of india has approved the nuclear liability bill in indian
parliament on 20 Aug 10. It removes "and" between clause 17(a) and 17(b)

See also
Nuclear power in India

Indo-U.S. civilian nuclear agreement

External links
Highlights of the Civil Liability for Nuclear Damage Bill, 2010 (http://prsindia.org/index.php?
name=Sections&action=bill_details&id=6&bill_id=1042&category=42&parent_category=1)
Nuclear Power and Civil Liability (http://prsindia.org/index.php?
name=Sections&id=5&parent_category=&category=60&action=bill_details&bill_id=1203)
Bill as passed by Lok Sabha (Amendments marked on the original Bill)
(http://prsindia.org/uploads/media/CNLD.Amendments.pdf)

References
1. ^ "Rajya Sabha clears nuclear liability Bill"
(http://www.thehindubusinessline.com/2010/08/31/stories/2010083152200500.htm) . New Delhi: The Hindu
Business Line. August 31, 2010.
http://www.thehindubusinessline.com/2010/08/31/stories/2010083152200500.htm. Retrieved 8 December
2010.
2. ^ Nuclear liability bill introduced, BJP walks out of Lok Sabha
(http://timesofindia.indiatimes.com/india/Nuclear-liability-bill-introduced-BJP-walks-out-of-Lok-
Sabha/articleshow/5902253.cms)
3. ^ ANALYSIS - Land, liability bill keep India nuclear power in dark (http://in.reuters.com/article/idINIndia-
47381720100401)
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Categories: Proposed laws of India | Nuclear energy in India | Nuclear liability | 2010 in law | 2010 in India

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