M A I N   N E W S

US confident of India passing N-liability Bill
Ashish Kumar Sen in Washington

I think the opposition in India has recently expressed its objections to aspects of that legislation, so it will be up to the government of India to figure out how to move forward on this. But again, they've always said to us that they remain committed to moving that legislation. — Robert Blake Assistant Secretary of State for South and Central Asia

As Prime Minister Manmohan Singh struggles with opposition in India over nuclear liability legislation, a US official has said it is up to the Singh government to figure out a way forward, but that he is confident about the commitment in New Delhi to pass the Bill.

Assistant Secretary of State for South and Central Asia Robert Blake told reporters at the Foreign Press Centre in Washington he didn't see current opposition to the liability legislation as a sticking point. “In all of our conversations with the Indian government, they have consistently said that they remain committed to fulfilling this commitment under the civil nuclear deal, to pass civil liability legislation,” Blake said.

Earlier in the week, Singh offered to discuss “deficiencies” in the legislation and said his government was keeping an open mind.

Blake said, “I think the opposition in India has recently expressed its objections to aspects of that legislation, so it will be up to the government of India to figure out how to move forward on this. But again, they've always said to us that they remain committed to moving that legislation.” He said the US remained committed to implementing the nuclear deal, struck with India by the previous administration of George W. Bush.

Critics of the liability Bill claim that the proposed compensation limits the rights of the victims in the event of a nuclear disaster and protects the interests of the operator. The government, however, contends the Bill’s intent is not to limit the compensation, but to ensure at least some immediate relief.

Last month, the US and India had wrapped up the reprocessing agreement well before the August deadline. The deal enables India to reprocess US-origin nuclear material at new reprocessing facilities dedicated for reprocessing spent fuel under International Atomic Energy Agency safeguards. Blake described this achievement as “a very important step forward in our civil nuclear process.” He added, “You’ve heard me say many times that the Obama administration is strongly committed to fulfilling the civil nuclear deal. And I think this is obviously a very clear sign of that.”

The liability Bill will limit nuclear firms’ liability in the case of accidents at nuclear plants, consistent with the International Atomic Energy Agency-sponsored Convention on Supplementary Compensation. The US India Business Council, which counts among its members companies that are champing at the bit to commence nuclear trade with India, said, “A nuclear liability law will not just establish an effective and assured means for adequate compensation in the extremely unlikely event of an accident. It will also enable responsible national and international suppliers to develop the safest nuclear power programme in India.”

“Contrary to myth,” USIBC said, “suppliers from all countries will require a modern nuclear liability regime in order to participate in the Indian market.” Besides the question of liability, the US and India also need to settle the issue of “CFR Part 810” assurances, which are required by the US before it gives export licenses to US companies seeking to start negotiations on civilian nuclear trade with India.

Delays in “Part 810 assurances” are currently preventing work by Indian suppliers in the US as well as collaboration in India. US industry is anxious to get the nuclear deal underway. Ted Jones, director for policy advocacy at USIBC, said he hoped he hoped the outstanding issues would get early attention as “US and Indian commercial nuclear firms are eager to partner not just in India, but in the renaissance of commercial nuclear power around the world.”