Assurance on nuclear issue likely, AG Mukul Rohatgi to address US concerns over Clause 46 of the Act

NEW DELHI: India will give a declaration to the US during President Barack Obama’s visit that India will not impose unlimited liability on nuclear equipment suppliers in the event of a nuclear accident, officials with knowledge of the matter said. The move is aimed at assuaging American concerns over the most contentious issue that has held up operationalisation of the civil nuclear deal between the two nations singed in 2008.

The declaration will be given by Attorney General Mukul Rohatgi to address US concerns over Clause 46 of the Civil Liability Nuclear Damage Act that allows for unlimited liability, the sources said. This is the best that India can offer as amendment of the law will not be possible, they said.

While the two sides made substantial progress over the deal at their third round of contact group meeting held in London this week, and would announce an insurance fund after the Modi-Obama talks on Sunday to address one section of the Act, the sticking point is the concern of US majors like Westinghouse over full liability in case of an accident. The insurance fund would provide cover to only certain components of reactors, covering Clause 17 of the Act. Resolving the impasse over the liability clause is expected to be a key deliverable from Obama’s three day visit starting Sunday.

The Department of Atomic Energy and Ministry of Finance have been working on the issue on a “day-to-day basis” to end the deadlock over the liability clause under the Civil Liability Nuclear Damage Act 2010.

According to the Act, an operator is required to set aside Rs 1,500 crore in case of a disaster and pay the affected parties. The operator can seek right to recourse from the suppliers, which makes investment in the nuclear sector by foreign players more difficult. The government had asked General Insurance Company to insure atomic power reactors, but the public-sector undertaking did not have the required financial capacity.