Vienna: In a significant step which will enable it to do nuclear commerce, India today signed the Convention on Supplementary Compensation (CSC), which sets parameters on a nuclear operator's financial liability, at the IAEA in Vienna.
The Indian move is seen as an effort towards allaying concerns of American companies on account of the newly-enacted Nuclear Liability law by Parliament.
"We can confirm that the Indian government has signed the CSC this morning," International Atomic Energy Agency (IAEA) press officials told PTI from Vienna.
The international convention provides for compensation in case of trans-national implications of a nuclear accident and has been signed by 14 countries, including India.
However, only four countries - the US, Argentina, Morocco and Romania have ratified the Convention so far.
Upon entry into force, the Convention on Supplementary Compensation for Nuclear Damage would establish a uniform global legal regime for compensation to victims in the unlikely event of a nuclear accident.
The CSC provides for establishment of an international fund to increase the amount available to compensate victims and allows for compensating civil damage occurring within a State's exclusive economic zone, including loss of tourism or fisheries related income.
It also sets parameters on a nuclear operator's financial liability, time limits governing possible legal action, requires that nuclear operators maintain insurance or other financial security measures and provides for a single competent court to hear claims.
According to IAEA, all States are free to participate in the Convention regardless of their involvement in existing nuclear liability conventions or the presence of nuclear installations on their territories.
Adopted on September, 12 1997, the Convention was opened for signature at the IAEA´s 41st General Conference at Vienna that same month and is set to enter into force on the 90th day after date of ratification by at least five States who have a minimum of 400,000 units of installed nuclear capacity.