India is currently grappling with the implementation of several international and domestic laws surrounding nuclear liability. Civil Liability for Nuclear Damage Act (CLNDA), 2010, Convention on Supplementary Compensation (CSC), and the role of Nuclear Power Corporation of India Limited (NPCIL) are primary factors in this context. With plans to establish six nuclear reactors in Maharashtra’s Jaitapur, the largest potential nuclear power generation site in the world, delayed due to regulatory issues, these laws draw significant attention.
Understanding Civil Nuclear Liability Laws
Civil nuclear liability laws are established to ensure victims are compensated for any damage caused by a nuclear incident or disaster. Besides outlining who is liable for the damage, these laws also set guidelines for secure compensation. International conventions under the International Atomic Energy Agency (IAEA), such as the Vienna Convention on Civil Liability for Nuclear Damage and the CSC, provide a legal framework for civil nuclear liability. Specifically, the CSC, adopted in 1997, sets a minimum national compensation amount – a convention that India ratified in 2016.
Insight into the Civil Liability for Nuclear Damage Act
In 2010, India implemented the CLNDA to provide a speedy compensation mechanism for victims of nuclear accidents among other objectives. The CLNDA imposes strict and no-fault liability upon the operator of the nuclear facility, making them liable for any damage irrespective of their fault. The Act stipulates an amount that the operator must pay in the event of an accident at ₹1,500 crore, with a requirement for liability insurance or other financial security.
Government’s Role in Nuclear Liability
The CLNDA stipulates that if damage claims exceed ₹1,500 crores, the government should intervene, limiting government liability to the rupee equivalent of 300 million Special Drawing Rights (SDRs).
Supplier Liability in Nuclear Deals
The supplier liability clause, included after acknowledging the role of defective parts in the Bhopal gas tragedy of 1984, allows the nuclear plant operator to seek recourse from suppliers in the event of a nuclear incident caused by supplier actions. This includes the supply of defective equipment or substandard services, or the actions of supplier employees.
Challenges with the Supplier Liability Clause
The inclusion of the supplier liability clause has deterred foreign and domestic suppliers from finalizing nuclear deals with India. Concerns have been raised about potential exposure to unlimited liability under CLNDA as no fixed compensation amount is determined under the law. Furthermore, ambiguity over insurance coverage in case of damage, lack of comprehensive definition on types of ‘nuclear damage’, and the possibility of criminal liability being pursued against operators and suppliers have further complicated this issue.
Additional Issues with the Civil Liability for Nuclear Damage Act
Several challenges are associated with the CLNDA, including monetary capping on compensation, possible burden on taxpayers, neglect of additional costs such as clean-up and safe disposal of nuclear waste, and the absence of foreign jurisdiction.
Way Forward: Suggested Amendments and Measures
To improve the current state of nuclear liability regulations, provisions for extra territorial jurisdiction should be made to access foreign courts for compensation from foreign suppliers. International agreements or robust dispute resolution mechanisms could provide potential solutions. Furthermore, clarifying or easing provisions for criminal liability and exploring alternative funding mechanisms such as insurance or a dedicated fund can help mitigate the burden on taxpayers.
This discussion on the intricacies of nuclear liability laws in India provides a foundation for further exploration of energy policy reforms, with an emphasis on balancing growth, safety, and liability concerns.
