This Article is From Aug 20, 2010

Cabinet clears N-Liability Bill, contentious word 'and' removed

Cabinet clears N-Liability Bill, contentious word 'and' removed
New Delhi: Under Opposition attack for trying to "dilute" the provisions of the nuclear liability bill, Government today made certain amendments to strengthen the proposed legislation which was approved by the Union Cabinet, paving the way for its consideration by Parliament.
     
The Cabinet, at a meeting chaired by Prime Minister Manmohan Singh, approved almost all the key recommendations made by the Parliamentary Standing Committee that examined the
Civil Liability for Nuclear Damage Bill, 2010.  However, it rejected a recommendation for addition of a word "and" between Clause 17(A) and (B) which talks about the nuclear power plant operator's right to recourse for compensation from supplier in the event of an accident.

The recommendation for addition of the word had triggered objections from BJP and Left parties which said it would dilute the operator's right to seek compensation from the
supplier. The committee had recommended that the Clause 17 shouldbe read as "the operator of a nuclear installation shall have the right of recourse where -- (A) "such right is expressly provided for in a contract in writing and (B) "the nuclear incident has resulted as a consequence of latent or patent defect, supply of sub-standard material, defective equipment or services or from the gross negligence on the part of the supplier of the material, equipment or services."

Instead, the government decided to preface the Clause 17 with the wording that the operator could, after compensating the victims, exercise the right of recourse against the
supplier. This is aimed at addressing the concerns that the BJP and Left had over clubbing of the Clause.

The BJP, which had agreed to support the bill, yesterday raised objection to the Committee's recommendation for addition of word "and", saying it was not discussed with it. The main opposition party today said the government "bowed" under pressure put by it on the issue of the Nuclear Liability Bill and has changed it from being "US-centric to India-centric."
    
"The format in which the nuclear liability Bill had come, it was against national interest. We are happy that government has bowed down under our pressure and has taken steps in
national interest," BJP spokesperson Ravi Shankar Prasad told reporters.
     
The Left also attacked the government, saying it was trying to protect the suppliers by diluting the operator's right to seek compensation. CPI(M) today said it still has concerns over the Civil Nuclear Liability Bill.

"The word 'and' should not have been there at the first place. But now the government has changed it. That is good. Our demands have been partially met. But we have other concerns (on the bill)," CPI(M) Polit Bureau member Sitaram Yechury told reporters.
     
He said the party was of the view that there should not be any capping on the liability in case of a nuclear accident. "You can set a minimum on liability as many other countries have done," he suggested.  Yechury also said there should not be any ambiguity on India joining any conventions dealing with liability. 

Left parties had opposed the cap of Rs 1,500 crore on the liability of a nuclear plant operator, saying it was "hardly significant", pointing out that a nuclear accident would be much more devastating than the Bhopal gas disaster.

The fresh concerns led to a series of consultations within the government throughout yesterday and it was decided that the Committee's particular recommendation for clubbing
two sub-clauses would not be accepted.
     
After clearance by the Cabinet, the bill is expected to be considered by Parliament in the next few days. The Bill, which was introduced in the Lok Sabha on May 7, is crucial for operationalisation of India's civil nuclear agreements with various countries, particularly the US.
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