The report on The Civil Liability for Nuclear Damages Bill (2010) will be tabled in Parliament next Wednesday, Parliamentary Standing Committee on Science and Technology Chairman T. Subbirami Reddy said with great confidence on Friday. This was even as his senior colleague, Union Finance Minister Pranab Mukherjee, engaged opposition leaders in a dialogue to narrow down differences on this contentious piece of legislation, without which, the government says, no nuclear commerce is possible. The government is particularly concerned about getting the bill through the Rajya Sabha, as it does not have a majority in that house.
Meanwhile, Department of Atomic Energy Commission chairman Dr. Sreekumar Bannerjee, addressing the misgivings of the Opposition to the Bill, told journalists, in an informal interaction, that the proposed law would ensure “immediate compensation” to affected persons in the event of an accident at a nuclear facility. Victims would not have to enter into any sort of litigation, as there is a “no fault” provision – that is, there will be no need to establish why the accident happened, or who or what was behind it to receive compensation.
Responding to the opposition parties’ demand that the suppliers – along with the operators – be made liable, he pointed out that it would not be practical for the affected people to seek compensation from the suppliers as there are to be no turnkey projects. However, he pointed out that there would be a contract between the operator and the supplier, and the operator could then pursue the supplier in case there was any product liability to be established. The contract will be outside the purview of the Bill, though the latter has a reference to it – Article 17 (b) enables a “right of recourse” for a nuclear plant operator, that is the right to sue a supplier for compensation in the event of an accident if it believes the accident resulted from negligence on the part of the supplier.
On the demand for unlimited liability, Dr. Bannerjee said a figure would have to be named, as without it, there could be no insurance – however, the figure could be debated, he added. Earlier, senior government sources had pointed out that the higher the cap, the larger the premium and the higher the cost of the individual unit of electricity produced from nuclear power.
Curiously, even as concerns have been expressed by opposition parties to the possibility of the entry of private players in the nuclear sector, Dr. Reddy – who heads the Standing Committee examining the nuclear bill – had an unstarred question listed in his name on the subject on August 12. Replying to the query, the government acknowledged that the Economic Advisory Council to the Prime Minister had advised “there is an urgent need to make the necessary regulatory changes quickly, so that investment including that from established private companies interested in this business, can begin to flow". But the reply also says, “At this stage, government does not intend to change the related provision of the Atomic Energy Act ,1962, for private participation in setting up of nuclear power plants.”
