N-Liability Bill: BJP on board with Rs 1,500 cr likely hike in compensation cap

The Standing Committee on Science and Technology,which finalised its report on Civil Liability for Nuclear Damage Bill 2010 that will be tabled in Parliament on Wednesday,also addressed concerns over the liability of foreign supplies,which the Opposition parties were apprehending could go scot-free in the event of an accident.

The Committee suggested incorporation of a provision ‘latent’ or ‘patent defect in equipment’ in the Clause 17(B) which provides for liability in case of a nuclear accident,sources said.

A provision for ‘willful default’ and ‘negligence’ on the part of the supplier has also been added in the Clause 17(B).

These provisions,which can make even the suppliers liable for any accident,are aimed at addressing some of the main concerns of the Opposition parties which have been fearing that the proposed law would allow the foreign suppliers to go scot-free.

In case of a mishap,an operator would have to pay the compensation upfront and then it can settle its liability with the supplier bilaterally,sources said.

The Committee recommended raising of the compensation cap from Rs 500 crore,as provided in the original bill,to Rs 1,500 crore or “such other enhanced amount notified by the government from time to time”.

BJP,which had initially wanted no mention of a cap in the proposed legislation,settled for the increased amount because of the provision for government notification if required.

Among other amendments recommended is the provision for extending to 20 years the period during which victims can claim damages from 10 years from the time of a nuclear incident as proposed in the original Bill,the source said.

A mention of Convention on Supplementary Compensation (CSC) will be removed from the Statement of Objects and Reasons and will find place in an indirect manner in the form of ‘as and when required,India can join international conventions under the aegis of IAEA’.

A breakthrough in bridging the differences between the ruling and Opposition members of the Committee was achieved when Finance Minister Pranab Mukherjee conveyed to BJP leaders the government’s readiness to address major concerns.

Along with BJP,other opposition parties,including Samajwadi Party,JD(U),RJD,MDMK,NCP and NC were on board over the report.

However,CPI(M),CPI and Forward Bloc did not agree with certain parts of the reports and gave a dissenting note. They are demanding increase in the compensation cap to Rs 10,000 crore.

The BJP,on the other hand,indicated it is likely to support the legislation paving the way for the smooth sailing of the controversial measure in Parliament.

Finance Minister Pranab Mukherjee’s meeting with BJP top brass L K Advani,Leader of Opposition in Lok Sabha Sushma Swaraj,her counterpart in Rajya Sabha Arun Jaitley on Tuesday ended on a positive note with both sides reaching a consensus on most issues in the draft bill.

BJP sources said the “body language” of Mukherjee appeared positive and the government reportedly assured the main Opposition that “four-five” of their main concerns were being taken care of.

The right-wing party had opposed the Rs 500 crore cap on compensation terming it too less and also the no-fault liability provision. It demanded more powers to the Claims Commissioner to prevent multiple counters for appeal besides fixing of some liability for the supplier among others.

The Parliamentary Standing Committee on Science and Technology met this afternoon to take a final view on the report on Civil Liability for Nuclear Damages Bill 2010.

With BJP and the UPA regime arriving at a broad understanding on the issue,the idea of giving a dissent note with the report has been dropped,sources said.

The government is keen on the passage of the Bill in Lok Sabha in the on-going monsoon session of Parliament.

BJP sources said if its concerns are met as promised by the government today,then it is likely to support the Bill in the Lok Sabha. This would isolate the Left parties which are still opposed to the Bill.

If the BJP stands with the government on the proposed nuclear legislation,the Congress-led regime would not need the support of BSP,SP and RJD.