The Nuclear Liability Bill

The bill deals with the liabilities in case of a possible nuclear mishap. The bill is necessary to
activate Indo-U.S. Civilian Nuclear Agreement. As the U.S. nuclear reactor manufacturing
companies will require the liability bill to get insurance in their home state. After this bill
becomes an act, India will become a member of the international convention on liability in the
civil nuclear arena.

Debate over the Bill

The bill is certainly debatable as it has certain clauses which indirectly let free the
manufacturers and the builders of the nuclear reactors from any financial and legal liability.

Clause 6
According to the clause 6 of the nuclear liability bill, the maximum financial liability in case a
nuclear accident occurs in nuclear reactors has been set at the rupee equivalent of 300 million
special drawing rights (SDRs) which is equal to $458 million (Rs. 2,087 crore). The amount is
considered meager in comparison to the destruction caused by a nuclear accident. A same kind
of law in U.S. has set the financial liability for such accident at $10.5 billion.

Clause 7
The clause 7 defines the share of financial liability for each of the culpable groups. It states that
the operator will have to pay Rs. 500 crore and the remaining amount will be paid by the Indian
government. This is considered as a ridiculous point as the operator will be the Nuclear Power
Corporation of India Ltd. (NPCIL) which in itself is a government owned facility.
The operator can claim the liabilities form the manufacturer and supplier if it is mentioned in the
contract. But the maximum amount payable by the foreign companies will be a very little sum of
Rs. 500 crore. Ultimately, it is the Indian taxpayer who will have to give the money even when
the accident has occurred due to others mistakes.
Same Kind of Law is also there is U.S (Price Anderson Act) allows victims to sue the Suppliers.

Clause 17
This clause deals with the legal binding of the culpable groups in case of a nuclear accident. It
does allow only the operator (NPCIL) to sue the manufacturers and suppliers. The victims won’t
be able to sue anyone. Practically, no one is considered legally liable because the recourse
taken by the operator will yield only Rs. 500 crore at maximum.

Clause 17(B) It highlights on the INTENTION of the supplier in case of an accident classifying it
as a “will full act” or a “gross negligence”

Clause 18
Clause 18 of the nuclear liability bill limits the time to make a claim within 10 years. This is very
less as compared to the long term damage that may be caused due to a nuclear accident.
Clause 35
Clause 35 extends the legal binding that the responsible groups may have to face. The operator
or the responsible persons in case of a nuclear accident will undergo the trial under Nuclear
Damage Claims Commissions and no civil court is given the authority. The country will be
divided into zones with each zone having a Claims Commissioner. In the U.S. counterpart – the
Price Anderson Act, the lawsuits and criminal proceedings goes under the U.S. courts.

Other Aspects of the Nuclear Liability Bill

• The Atomic Energy Regulatory Board (AERB),the Indian regulatory authority is ill
prepared for the new designs.

• Few days back the British Regulatory Board refused to certify the designs of AREVA %
WESTINGHOUSE(The Suppliers)
• The foreign made reactors will not be operated by the private companies but the
operator will be NPCIL only. Thus the electricity produced will be state subsidized which
indirectly is the taxpayer’s money. In case, private sector is allowed to operate, the
electricity rates would be low due to the competition between different operators.

• Even finance ministry and environment ministry has raised question on this bill keeping
in view the financial and environmental sustainability. A nuclear mishap can cause
negative long term health and environmental effects.

• M V Ramana, an eminent nuclear scientist said that the Atomic Energy Regulatory
Board (AERB) will take care of the quality of the imported enriched Uranium nuclear
reactors. But, the board lacks expertise in such reactors.

• Since India has developed its nuclear technology in using natural Uranium and Thorium
as a nuclear fuel through indigenous efforts, the import of enriched Uranium reactors is
considered to slow down the process of nuclear research and development in India.

• Peaceful Use of Nuclear Power

• The technological developments in nuclear reactors have significantly reduced the

probability of a serious nuclear catastrophe. Nuclear energy is considered as an
environment friendly and sustainable source of energy. But, it is still necessary to keep
in mind the negative aspects of the nuclear energy and measures must be taken for its
peaceful use.

Conclusion
The aim of the Government in introducing such complexity in the language of the bill it to
minimize the financial & legal liability on the part of the suppliers.
Foreign players and U.S in particular are stressing on such a bill frame-work as its companies
are not backed by public finance so they run the chance of bankruptcy if a Nuclear Accident
would take place.