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For the first time after India and the US signed a civil nuclear deal or the ‘123 Agreement’, Indian business has flagged concerns on behalf of the domestic nuclear equipment manufacturing industry.
A week after the ministry of external affairs (MEA) issued FAQs, or answers to frequently asked questions, on the nuclear deal, the Federation of Indian Chambers of Commerce and Industry (Ficci) has asked the government to clear apprehensions arising out of sections 17 and 46 of the Civil Liability for Nuclear Damage Act (CLNDA) and Rule 24 of the Nuclear Damages Act.
“The contentious issues that still remain are uncertainties arising out of interpretation of these... risk hampering India’s robust civil nuclear energy programme,” said Jyotsna Suri, president, Ficci.
She said the definition of nuclear equipment supplier needed to clearly distinguish the difference between international and domestic nuclear equipment makers engaged in contract manufacturing for Nuclear Power Corporation of India (NPCIL).
The government on February 8 had issued a detailed clarification on the ‘123 Agreement’, signed in September 2008.
During US President Barack Obama’s visit to India last month, both sides claimed a “breakthrough” in kick-starting the deal, stuck due to the strict clauses in the CLNDA which restricted companies such as GE and Westinghouse to enter into commercial agreements with NPCIL.
According to the FAQs, the government will not amend the CLNDA and the right to recourse in a nuclear disaster will be exercised both by the supplier and the operator under the contract. MEA also stated an insurance pool would be created, which both can take advantage of under the law.
Ficci also urged the government to finalise the Nuclear Insurance Fund and details on contracts between NPCIL and industry in a court of law in the event of an accident. “The nuclear manufacturing industry would also require a clarification from NPCIL and department of atomic energy that this risk would be adequately covered through the Nuclear Insurance Fund,” said Suri.
The government has also proposed the creation of a Nuclear Liability Fund. This is to be built up over 10 years by levying a small charge on operators, based on the power generated from existing and new plants.
Additionally, the government has sought to address the concerns raised by both international and domestic suppliers under Section 46 of the CLNDA, which covers the remedies available against the operator. It does not allow the victims of a nuclear disaster to move foreign courts for compensation.
