The United States considers resolving its concerns regarding India’s nuclear liability legislation an “important priority”, according to US Assistant Secretary for South and Central Asian Affairs Robert Blake.
The US raised the issue during the bilateral meeting between India’s External Affairs Minister S M Krishna and US Secretary of State Hillary Clinton in New York on Monday.
Speaking to mediapersons after the meeting, the senior state department official said, “We’ve taken note of some of the concerns that industry representatives have raised about some of the provisions of the liability bill and that the bill may possibly be inconsistent with international standards.”
Even before the bill was passed in the Lok Sabha and Rajya Sabha last month, industry representatives in the US had indicated they were upset as the legislation was not consistent with the Convention on Supplementary Compensation and that it included liability for suppliers rather than placing all liability on the operator in the event of an accident.
After the bill was cleared by both Houses, state department spokesman P J Crowley had said the US would continue discussions with the Indian government to see what changes could be made to the legislation.
However, speaking to Business Standard in New York on September 23, Krishna made it clear that “there is absolutely no scope” for any changes to the Bill at this stage, as it was already awaiting the President’s assent, after which it would become law.
Blake indicated that the issue of liability, if not the legislation, was still a subject for discussion, saying, “We look forward to working with the Indian Government to work our way through this and arrive at a solution where the American industry can contribute to India’s ambitious civil nuclear energy needs.”
Foreign Secretary Nirupama Rao said Krishna had explained the legislative process to Clinton during their meeting. She said Krishna had also conveyed India’s position that “we are ready to engage with the US companies on the questions that they had raised to be able to clear their doubts and clarify the issues that they wanted to discuss with us”.
Rao added that the Indian government had already begun some discussions in this regard, and was confident that this issue could be resolved.
During the bilateral meeting, India raised its concerns about the recent fee increases for some H1B visas that were part of a US border security law, and cautioned of the “risks inherent in protectionist trends”.
On the issue of export controls, Rao said Krishna and Clinton had “underscored the need for progress and forward movement” on India’s longstanding demand for the US to lift restrictions on exports of high-technology and dual-use items to India, but added there was still some ground to be covered on this issue.
The bilateral meeting was described as “warm” and “friendly” and mainly focused on preparing the ground for US President Barack Obama’s scheduled visit to India this November. Clinton also conveyed America’s appreciation for the role being played by India in Afghanistan, and its contribution of $25 million for flood relief efforts in Pakistan.
Both sides said Kashmir was not discussed at all. And despite Pakistan’s Foreign Minister Shah Mahmood Qureshi repeatedly calling for some US involvement in Kashmir during the past week, Rao said such a step has not come up for discussion between India and the US.
Indian and US officials both noted after the meeting that the bilateral relationship was strong and that there was enough goodwill on both sides to address irritants such as H1B fees and nuclear liability.
