Civil Liability for Nuclear damage Bill, 2010

19-9-2013

Today Once again this act come in to limelight With the article publish in the hindu : (Manmohan may carry nuclear liability dilution as gift for U.S. companies)

In an opinion to the Department of Atomic Energy,  Attorney general said :-

                          It is for the operator of a nuclear plant in India to decide whether it wished to exercise the ‘right of recourse’ provided to it by section 17 of the Civil Liability for Nuclear Damage Act.

In part one 1 would like to discuss on the main controversial clause of act and than in part 2 , write the silent features of act.

Part 1

 Controversy on clause 17 – It powered the operator to take recourse against the supplier.

In simple word ,  If India ( NPCIL-operator)  import some fuel or machinery from foreign company and Accident occur due to sub standards of that equipment than operator ( India – NPCIL ) have right to recourses with that foreign country.

But , here is not the matter of only foreign companies, it’s include also indigenous also .

Foreign companies arguments :- 

                                       why they should be responsible for a reactor incident say 20 years after its delivery, by when the operator would have recovered the cost of purchase and would presumably be making profits.

Government stand :-

                             With keeping he "sentiments" emerging from the Bhopal gas tragedy case in mind government said , there is no question of a change in legislation now,

What could be the Solution ? :-

                                     A "reasonable" time-frame and cost quantum would then become a function of the contract. Depending on the equipment, the contract with the supplier will reflect this.

Part 2 :- Civil Liability for Nuclear damage Bill, 2010 : decoded

Objects and Reasons of the Bill :-

The nuclear industry in India is growing and as a result of the steps taken particularly in the recent period, it is expected to form an important part of the energy-mix of the country.

While making the design, and during construction and operation of nuclear power plants every care is taken to ensure safety of the plant, public and the environment.

However, in the unlikely event of a nuclear incident or accident, there may be damage to individuals, property and environment on a large scale.

The geographical scope of damage caused by a nuclear accident may not be confined to national boundaries and it may have trans-boundary effects.

In such an event, it is desirable that protection is accorded to victims of such incident or accident by a third party liability regime. It is necessary to give compensation to persons if they suffer nuclear damage as a result of a nuclear incident and therefore it is important to make provision to ensure clarity of liability and the requirement to pay compensation.

International agreements and India :-

There are three major international agreements which form the international framework of nuclear liability:

(a) The Paris Convention of 19603,
(b) The Vienna Convention of 19634, and
 (c) The Convention on Supplementary Compensation for Nuclear Damage of 1997.

India is not a party to any of these conventions presently.

Silent features of bill :- ( Clause wise )

(changes carried out by Government after the report of standing committee)

1.) Topic : Private operator entry :-

 the Bill applies only to nuclear installations owned and controlled by the Central Government, either by itself or through any authority or corporation established by it or a Government company, as defined in the Atomic Energy Act, 1962.”

And Atomic Energy Act, 1962 permit a Joint venrutre with private comply with stake of government more than 51%

2.) Clause 6 :- The total liability for a nuclear incident may be insufficient in some cases.

The maximum amount of liability in respect of each nuclear incident shall be the rupee equivalent of 300 million Special Drawing Rights. OR as such higher amount central government may specify by notification

3.) Clause 6(2) :- operator liability  :-              (A) Operators of nuclear installation producing more than 10MW of energy liable to 1500 crores             (B) For , spent fuel , Re processing plan liability would be Rs 300 crores              (C) For a research reactor producing  less than 10MW energy, it’s Rs.100 crores The central government have power to increase this liability by notification It do not include interest rate and administrative expanses Most of  Indian nuclear set up producing energy more than 10MW 4.) Clause 18 :- Time limit for compensation A person can claim compensation , in case of nuclear accident              (A) In 10 years , In case of property damage              (B) In 20 years , In case of personal damage or injuries 5.) Clause 35 :- Bar on Jurisdiction of civil courts. No civil courts except high court and supreme court ( Under article 226,227 ) shall have Jurisdiction to entertain any  proceeding  of compensation  Commissioner Other Important feature :- Clasue 36 :- Operators of nuclear installations (except those owned by the central government) are required to take out an insurance policy or other financial security covering the amount of their liability (Rs 500 crore) before they can operate nuclear installations.