Siddharth Varadarajan

New Delhi: The Union Cabinet overrode strong objections from both the Finance and Environment Ministries in approving the controversial Civil Liability for Nuclear Damage Bill November last, The Hindu has learned. These objections related to the impact of the law on safety standards and on providing adequate compensation in the event of a nuclear accident.

The Bill, which the government is to introduce in Parliament this session, channels all liability stemming from a nuclear accident to the operator of the plant. The maximum liability for an incident has been fixed at 300 million SDRs (approximately Rs. 2,385 crore), but the liability of the operator, whether public or private, is capped at Rs. 500 crore. The draft law will enable the country to accede to the Convention on Supplementary Compensation for Nuclear Damage (CSC), without which the United States says its companies will not be able to sell nuclear equipment to India.

In its comments, the Ministry of Environment and Forests (MoEF) drew attention to the law's failure to specify the amount of compensation for death or damage due to an accident. It said nuclear damage to human and animal life and the environment were long-term and needed a thorough understanding of the subject, “especially as the Act is for final compensation and not for interim relief.”

The MoEF pointed out that the law did not specify which agency or entity was eligible to file a claim for compensation for damage to the environment. Finally, in the absence of the Health Ministry batting for its concerns, it said the 10-year limit for filing of claims was too low “since the nuclear damages involves changes in DNAs resulting in mutagenic and teratogenic changes, which take a long time to manifest.” It observed that more scientific guidelines were needed to ensure the competent claims authority was able to review these kinds of damage and award compensation “which is just.”

The Finance Ministry focussed its criticism on the central tenet of the law — the need to limit the liability of private companies involved in the nuclear business to Rs. 500 crore. Noting that the difference between that figure and the maximum liability of Rs. 2,385 crore would have to be made good by the government, the Ministry questioned the Department of Atomic Energy's rationale that the risk of accidents was low and that unlimited liability would hinder the growth of the nuclear industry in the country.

Limiting the liability in an arbitrary way could “expose the government to substantial liabilities for the failings of the private sector management in such installations,” it said in its submissions to the Cabinet.

In the end, however, the objections were rejected and the draft law approved as it stood.

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