Note4Students
From UPSC perspective, the following things are important :
Prelims level: Civil Liability for Nuclear Damage Act (CLNDA), 2010
Mains level: Read the attached story
Central idea: The article discusses how the issues regarding India’s nuclear liability law are holding up the plan to build six nuclear power reactors in Maharashtra’s Jaitapur, which is the world’s biggest nuclear power generation site under consideration at present.
Law governing nuclear liability in India
Ans. Civil Liability for Nuclear Damage Act (CLNDA), 2010
| Provision | Description |
| Purpose of CLNDA | To provide a speedy compensation mechanism for victims of a nuclear accident |
| Liability on operator | Strict and no-fault liability on the operator of the nuclear plant, where the operator will be held liable for damage regardless of any fault on its part |
| Amount of liability | In case of damage caused by an accident, the operator will have to pay ₹1,500 crore |
| Insurance or financial security for liability | The operator is required to cover liability through insurance or other financial security |
| Government liability in case of excessive claims | If the damage claims exceed ₹1,500 crore, the CLNDA expects the government to step in and has limited the government liability amount to the rupee equivalent of 300 million Special Drawing Rights (SDRs) or about ₹2,100 to ₹2,300 crore |
The concept of Supplier Liability
- The CLNDA introduced the concept of supplier liability in addition to operator liability in India’s civil nuclear liability law.
- The international legal framework on civil nuclear liability, including the annex of the CSC, is based on the exclusive liability of the operator of a nuclear installation.
- CLNDA Section 17(b) allows the operator of the nuclear plant to exercise the right of recourse against the supplier in case of a nuclear incident resulting from an act of the supplier or their employee, including the supply of defective equipment or materials.
Why is it the issue in Nuclear Deals?
- Undue liability: Foreign and domestic suppliers have been hesitant to enter into nuclear deals with India due to the country’s unique liability law, which allows suppliers to be held liable for damages.
- Lack of clarity: on how much insurance needs to be set aside in case of damage claims and the potential for unlimited liability have been major concerns for suppliers.
- Unlimited liability: Suppliers have taken issue with two specific provisions in the law – Section 17(b) and Section 46 – which expose them to liability beyond that of the operator of the nuclear plant. Section 46 potentially allows civil liability claims to be brought against both the operator and suppliers through other civil laws such as the law of tort, further exposing suppliers to unlimited amounts of liability.
Existing projects in India
- The Jaitapur nuclear project has been delayed for over a decade.
- India has signed civil nuclear deals with the US, France, and Japan, but the only foreign presence in India is that of Russia in Kudankulam, which predates the nuclear liability law.
- The government has stated that the Indian law is in line with the Convention on Supplementary Compensation (CSC).
Government’s stand
- The Indian law is in line with the Convention on Supplementary Compensation (CSC).
- However, legal experts have pointed out that suppliers can be sued if defective equipment is provided or if it can be established that the damage resulted from an act of intent.
- It would not be sound public policy if the Nuclear Power Corporation of India Limited (NPCIL) waived its right to recourse in the contract, despite the law providing for such recourse.
Conclusion
- The issues regarding the liability law would be resolved before French President Emmanuel Macron’s visit to India, which was first scheduled for March but has been pushed to September.
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