Cabinet clears nuclear liability bill

The government has reportedly cleared the amended legislation. It has resolved the understanding with the BJP over the nuclear liability bill. The bill will be brought to Parliament next week. According to reports, there are no significant dissenters with smaller parties like JD(U) and NC pitching in for the bill. Even the RJD members on the standing committee had supported the bill. Earlier it was suggested that the bill should fix the liability cap on the state-run operator at Rs15bn (~US$320mn) as against Rs5bn (US$110mn) proposed in the original draft law. There was no compensation burden on private suppliers and contractors in the original draft.



However, evidence placed before the parliamentary panel examining the bill makes it clear that with the no-fault cap raised to Rs15bn, entry of foreign insurers may be inevitable along with inspection of Indian atomic power plants by outside surveyors. The capacities of Indian insurers will be inadequate for liability caps in excess of Rs5bn and involvement of foreign firms in the nuclear sector may be the only recourse, depositions by ministry of finance and general insurance company representatives suggested, add reports.