French company seeks clarity on some clauses of civil nuke law

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Press Trust of India New Delhi
Last Updated : Dec 15 2013 | 11:22 AM IST
French company Areva, which is building nuclear reactors in Jaitapur, has asked India for more clarity on some clauses of the civil nuclear liability law.
"It appears that some clauses of the Indian civil nuclear liability law are open to various interpretations. Therefore, we are calling for a clarification and expect that once the provisions are clarified, a legal framework acceptable for suppliers like Areva will be defined," a well-placed source in Areva told PTI.
The Jaitapur Nuclear Power Plant (JNPP) in five villages - Madban, Karel, Mithgawane, Varilwada and Neveli - in coastal Ratnagiri district of Maharashtra, nearly 350 km south of Mumbai, is to have six nuclear reactors with the capacity of 1650 MW each with French cooperation.
Sources pointed out that the company has raised objections over liability clause of the Civil Liability for Nuclear Damage Act, 2010.
It is believed to have raised concerns because of ambiguity in some clauses including clause 17 (a), (b) and (c) and clause 46. 'Right to Recourse' is also a bone of contention.
This allows the operator (Nuclear Power Corporation of India Limited) to sue the suppliers (who could be providing reactors or even minor parts) in case of a nuclear disaster.

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Clause 17 (b) states that "the nuclear incident has resulted as a consequence of an act of supplier or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services".
These clauses are a matter of concern, sources point out, because it put blames on the suppliers and both Indian and foreign companies in the nuclear sector are worried over this. This also gives the operator some leverage over suppliers.
These clauses, to a large extent, also holds the suppliers liable for an unlimited time-frame, in case of an accident, which is not unacceptable to many, including companies like Areva.

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First Published: Dec 15 2013 | 11:22 AM IST

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