2. The Civil Liability for Nuclear Damage Bill 2010 OBJECT OF THE ACT To create a mechanism for compensating victims of nuclear damage arising from a nuclear incident.
3. NUCLEAR POWER IN INDIA It is the fourth largest source of electricity in India. (Wind, Hydel and Biomass, rest of the demand by coal nuclear and solar energy) To sustain the 8% economic growth in 2030 – increase electricity generation 4 times There are currently 19 nuclear reactors in the country. They are Tarapur (4), Rajasthan (6), Kaiga (3), Chennai, Narora, Kakrapur (2) 4 other are under construction Current 3 per cent share of India’s electricity should rise to 25 per cent in 2050
5. INDIA AND INTERNATIONAL AGREEMENTS There are three major international agreements which form the international framework of nuclear liability: The Paris Convention of 1960, The Vienna Convention of 1963 and The Convention on Supplementary Compensation for Nuclear Damage of 1997. India is not a party to any of these conventions presently. International agreements have certain common features to address this issue: Fixing no-fault liability on operators and requiring them to take insurance or provide financial security. Limiting no-fault liability in time and amount. There is a process for expeditious distribution to victims by fixing which court/ authority has jurisdiction. India has also signed some agreements with other countries (including USA, UK, Russia, France, and Canada) for co-operation in use of nuclear energy for civilian purposes. Indo-US agreement explicitly states that India has to create a civil nuclear liability regime.
6. KEY FEATURES DISCUSSED Entry of private operators Adequacy of the liability limit and the financial security Assessment of compensation Compliance with international agreements Time-period Nature and extent of fault liability
7. HIGH LIGHTS OF THE BILL Defines nuclear incidents and nuclear damage, nuclear fuel, material and nuclear installations. Fixes liability for nuclear damage and the financial limit of the liability for a nuclear incident. Fixes no-fault liability on operators. It caps the liability of the operator at Rs 500 crore. For damage exceeding this amount, and up to 300 million SDR, the central government will be liable. All operators (except the central government) need to take insurance or provide financial security to cover their liability. For facilities owned by the government, the entire liability up to 300 million SDR will be borne by the government. Specifies the procedure for claiming compensation, who can claim compensation and the authorities who will assess and award compensation for nuclear damage. Specifies penalties for not complying with the provisions of the Bill.
14. KEY ISSUES AND ANALYSIS The liability cap on the operator (a) may be inadequate to compensate victims in the event of a major nuclear disaster; (b) may block India’s access to an international pool of funds; (c) is low compared to some other countries. The cap on the operator’s liability is not required if all plants are owned by the government. It is not clear if the government intends to allow private operators to operate nuclear power plants. The extent of environmental damage and consequent economic loss will be notified by the government. This might create a conflict of interest in cases where the government is also the party liable to pay compensation. The right of recourse against the supplier provided in the Bill is not compliant with international agreements India may wish to sign. The time-limit of ten years for claiming compensation may be inadequate for those suffering from nuclear damage. Though the Bill allows operators and suppliers to be liable under other laws, it is not clear which other laws will be applicable. Different interpretations by courts may constrict or unduly expand the scope of such a provision.
15. CONCLUSION 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. It is still necessary to keep in mind the negative aspects of the nuclear energy and measures must be taken for its peaceful use.
