Amidst fears that attempts may be on to dilute the country’s nuclear liability law ahead of Prime Minister Manmohan Singh’s visit to the US later this month, the government maintained on Thursday that there is no such move.
A statement issued by the Department of Atomic Energy (DAE) on Thursday maintained, “There is no question of Indian law being violated or diluted.” It further said that any contracts between the Nuclear Power Corporation of India (NPCIL) and its foreign suppliers “will be fully consistent with Indian law”. Senior government ministers too maintained that the law of the land would prevail.
The government’s swift response came following reports that it may dilute the nuke liability law in its attempts to see an agreement signed between NPCIL and US vendor Westinghouse Electric Company. Once signed, the pact will enable Westinghouse to begin work on the proposed nuclear power park in Mithi Virdi in Gujarat.
The concerns stemmed from the opinion that Attorney-General G.E. Vahanvati has given to the department of atomic energy wherein he has stated that it is for the operator of the nuclear plant in India to decide if it wishes to exercise the right of recourse under Section 17 of the Civil Liability for Nuclear Damage Act.
The pact between NPCIL and Westinghouse is expected to be signed during the PM’s visit to the US in late September to attend the UN General Assembly session. While in the US, the PM will be having a bilateral meeting with President Barack Obama.
The Cabinet Committee on Security is expected to consider a proposal to sign an agreement between Nuclear Power Corporation of India Ltd (NPCIL) and the US-based operator Westinghouse Electric Company.
India’s nuke liability law is seen as being non-conducive one by American companies as it allows NPCIL to seek partial compensation from suppliers in the event of their reactors being involved in a nuclear accident.
Scrambling to douse the fire after the revelation of the A-G’s opinion — it is being seen as an attempt by the government to sign the agreement with the US — external affairs minister Salman Khurshid said that while India needs energy, it will get it on its “own terms and conditions”.
Mr Khurshid also asserted that the government is bound by the rules framed in Parliament and it would not take any decision which is against national interest.
Minister of state in the PMO V. Narayanasamy too asserted: “The opinion given by the Attorney-General is there but the opinion of the A-G is not going to be implemented for the simple reason that the Indian law will prevail for everything.”
Battling criticism, the DAE statement also said that the contracts which will be signed with foreign companies will be fully consistent with the Indian law. It also asserted: “The projects will have to meet the highest standards of safety and the power generated will have to be competitive with other sources of nuclear as well as alternative forms of power. This will apply to our projects with Russia, France and the United States.”