US hopeful of addressing nuke liability issues with India

WASHINGTON: The US is hopeful that there may be an opening to address its frustration over the contentious nuclear liability issues with the new Indian government, a top American official has said.

"While we have not yet had detailed discussion with the Modi government on the way forward on civil nuclear cooperation, we believe that there may be an opening to address nuclear liability issues either through a legal framework or through other channels that can help create more surety on what the application of liability might be so that it is not unlimited liability as the companies are rightly concerned," Assistant Secretary of State for South and Central Asia Nisha Desai Biswal said.

Biswal was answering a question put forward by Senator James Risch who expressed frustration over the nuclear liability issue between the two countries which signed the Indo-US civilian nuclear deal in 2005.

"We are disappointed that it has been six years now and we have not really seen the participation of the US nuclear industry, particularly the companies being able to participate there. And it of course surrounds this issue of liability," Risch said.

"Understanding it's very early on in the Modi administration, but do you see some things there that give you some hope that there is going to be some movement in that regard?," he asked.

Biswal stated that the issue is going to require greater discussion between the US and India as well as between the companies and Nuclear Power Corporation of India Limited (NPCIL) to decide the way forward.

"We share your frustration in terms of the lack of progress in the issue over the last six years. While we did get some initial success and were able to complete the small contract with respect to the previous government, we see some expanded areas of opportunity with the new government," Biswal told Senators during a Congressional hearing yesterday.

The Civil Liability for Nuclear Damage Act, which enables operator of nuclear power plants in India to seek partial compensation from suppliers in case of accidents, is hampering projects in the country.

Suppliers of nuclear equipment from the US, Canada and other countries see the Nuclear Damage Act as a hurdle in selling nuclear reactors to India.