The Sticking Points Section 17(b): Allows operators to claim damages from vendors if a nuclear incident is caused by ‘patent or latent defect’ in supply of equipment or services. Does not limit supplier liability in any way, even as Rule 24 caps such liability, both in terms of amount (Rs 1,500 crore or value of contract) or time (five years or product liability period). Section 17(b) is also inconsistent with international law (Convention on Supplementary Compensation for Nuclear Damage) wherein all liability is channelled to the operator. Section 46: Fails to bar other civil claims against the operator under other laws such as the general law of tort, leading to potentially unlimited liability for operator, and thereby suppliers. International safeguards: American insistence on national flagging of material and equipment imported from the United States (the so-called administrative arrangement). Way around it Section 17(b): Insurance pool to be floated by GIC and four other state-owned general insurance companies to offer a cover of up to Rs 750 crore while a government backup will extend this to Rs 1,500 crore. The decision by India on ratification of CSC will extend the cover further by opening up access to six other global insurance pools. Section 46: Assurance on civil claims being limited to the operator. ‘Administrative arrangement’: The US will no longer demand national flagging and is ready to accept IAEA safeguards as adequate. Compiled by Anil Sasi
