Fate of legislation linked to deal hangs in balance

NUCLEAR DEAL DONE, POLITICIANS TAKE OVER

The divide between the Left and the UPA over the 123 Agreement in Parliament does not augur well for the legislative changes needed to operationalise the nuclear deal. According to top sources in government, at least two laws need to be changed if the agreement is to work.

"India needs to sign an international convention on civil nuclear damages liability. For this, Parliament needs to clear a damages and liability Bill, which will define the contours of a company's liability in case of an accident at its nuclear reactor," said a top source in the government.

"Unlike the Bhopal gas leak case, in which the CEO of Union Carbide was prosecuted, the Bill will define the liability more locally and provide for insurance," said the source. The private companies will be allowed to set up nuclear reactors only if India signs the convention. "For the US, which is looking to revive its private nuclear industry through business with India, this is crucial. If the convention is not signed, India will take nuclear power technology from Russia and France, which have a number of state-owned companies in the business," said the source.

The second change is an amendment to the Atomic Energy Act to allow private Indian firms set up nuclear reactors. "Without the amendment, only government-owned companies like the Nuclear Power Corporation of India will be able to set up nuclear power reactors," said the source.