Obama in India: India, US make substantial progress in Nuclear Liability Clause, post dialogue

NEW DELHI: India and the US on Wednesday made substantial progress in talks to break logjam over the nuclear liability law for full implementation of the civil nuclear deal and the two are expected to announce an insurance fund after the Obama-Modi talks next Sunday.

The progress was made at the third meeting of the Contact Group in London on Wednesday, official sources said. However, another major concern of US nuclear majors like Westinghouse over waiving full liability in case of an accident remains unresolved. It has been left to Modi and Obama to break impasse, sources have hinted.

The insurance fund would provide cover to certain components of the reactors supplied by nuclear major and this would address concerns of the suppliers over Clause 17 of the Liability Act.

A senior official from Westinghouse had earlier expressed fears it may still have to bear some liability under Section 46 of the Liability Act in case of accident.

It remains unresolved. They have been seeking full waiver. Resolving the impasse over the liability clause, which leaves suppliers accountable for damages in the event of an accident at a nuclear plant, will be a key deliverable from the Obama visit.

The contact group, set up when Prime Minister Narendra Modi met Obama in September, was mandated to discuss all issues hampering the implementation of the civil nuclear energy cooperation agreement signed between India and the US in 2008.