Nuclear-deal: Hope floats after India assurance to US

The choice of London as the meeting venue for the Indo-US contact group was kept for the reason that both Indian and American officials can return to their principals in their respective Capitals, in a reasonable amount of time, sources said. This is important since both sides are keen to deliver an outcome on the nuclear issue during US President Barack Obama’s three-day state visit from January 25.

New Delhi has handed over the “legal formulation” for an “assurance” from the Indian government so that compensation claims from American nuclear suppliers cannot be sought under the tort law — that offers remedies to those harmed by civil wrongs. This is to assuage concerns of the US firms as Section 46 of the The Civil Liability for Nuclear Damage Act, 2010, keeps open the possibility to seek damages under the tort law. Indian officials have argued that the provision talks of “operators” only — in this case, Indian government-owned entities — and not “suppliers” which can be American firms.

Officials said the discussion now is on the “administrative arrangements” — described as the rules to conduct business — so that the American companies can start nuclear commerce. Administrative arrangements have already been completed with France and Canada for nuclear commerce.

The two sides also discussed efforts for Indian membership to the Nuclear Suppliers’ Group (NSG).

The Indo-US Contact Group on nuclear cooperation met for the third time in 45 days, as these issues have stalled the implementation of the agreements inked in 2005 between then US President George W Bush and then Prime Minister Manmohan Singh.

The talks in London, which began on Wednesday, follow the second round held in Vienna earlier this month and sources indicated there was “forward movement” in the last two rounds and the officials would build on that to achieve something “concrete”.

Indian government sources said the US appeared to be finally moving from its position on the nuclear liability law — from being advocates of amending the law to getting guarantees from the Indian side on tort law claims. The Indian side, the sources said, was proposing an insurance pool as an effective cushion for the suppliers’ liability.

Earlier on Thursday, Ministry of External Affairs’s official spokesperson Syed Akbaruddin said, “Our negotiators are working together in a collaborative manner in London… what is being discussed is how within the four walls of our legal framework, our legislation, we can provide assurance to our partners in the US and any concerns that they may have either through their vendors or lawyers that is the discussion that is taking place right now in London.”

Obama, who will be arriving on Sunday, will be accompanied by wife Michelle Obama and a slew of top American interlocutors — NSA Susan Rice, Indian-American Congressman Ami Bera, Commerce Secretary Penny Pritzeker, US Trade Representatives Mike Froman and Climate Change Advisor John Podesta. The government has proposed Minister of State with Independent Charge for Power, Coal and New & Renewable Energy, Piyush Goyal, as the minister-in-waiting to receive and accompany the US President during his visit.