[The Cabinet has just cleared the revised text of the Bill. The mischievous
and mysterious "and" has, reportedly, been dropped. Whether the revised
version of the Clause 17 (b) stands or not is not yet clear. The final
confirmation is awaited.
The revised 17 (b) sans the "and" at the end of 17 (a) would be a
substantive improvement over the earlier version as regards
supplier's liability.

Russia, US, France are all wary of supplier's liability. For very obvious
reasons.
Gopalakrishnan's complete silence over Russia (ref. IV below), which is as
much keen to get rid of any supplier's liability clause (ref. <
http://groups.google.co.in/group/greenyouth/browse_thread/thread/9deab56e3023ea46/e158613c383fd672?lnk=gst&q=Sukla+Sen,+Balachandran#e158613c383fd672>),
is pretty much baffling.]

I/IV.
http://www.dnaindia.com/india/report_breaking-news-union-cabinet-clears-nuclear-liability-bill_1425987

<http://www.ndtv.com/article/india/cabinet-clears-nuclear-liability-bill-45785>
Breaking news: Cabinet clears Nuclear Liability Bill
Published: Friday, Aug 20, 2010, 10:31 IST

The government has finally bowed down to the BJP's contention over the use
of the word 'and' between Clause 17 (a) and (b) of the Bill. The word has
been removed whichmakes the supplier liable to the government. The operator
can now seek compensation fromt he supplier.

The government was facing tremendous pressure from the Left and BJP parties
who gave the government an ultimatum to introduce this amendment.
The Bill will now be introduced in the Parliament.


II.
http://economictimes.indiatimes.com/news/politics/nation/Supplier-liability-to-save-nuke-bill/articleshow/6363362.cms

20 AUG, 2010, 07.39AM IST, AMITA SHAH,ET BUREAU
Supplier liability to save nuke bill
Bowing to pressure from BJP, the government has indicated that it would not
spare foreign suppliers of liability for accident caused by their
negligence.

Bowing to pressure from BJP, the government has indicated that it would not
spare foreign suppliers of liability for accident caused by their
negligence. The U-turn was prompted by BJP’s decision to rollback its
support for the bill unless the government made suppliers liable for nuclear
accident.

BJP had earlier alleged that a ‘clumsily’ stapled note was stealthily
included in the standing committee’s report to dilute the liability of the
supplier. The main opposition , which had offered its support to the
government on Tuesday, conveyed to the government on Thursday evening that
it cannot bank on its support unless the required changes were made to hold
suppliers liable for nuclear damage.

The developments forced the Centre to put off a meeting of the Union
Cabinet, scheduled for Thursday, to Friday, to approve the bill. However,
with the government keen on ensuring passage of the bill in the ongoing
session, it may make the required concessions to get BJP on board.

At a meeting with S&T minister Prithviraj Chauhan, BJP leader Arun Jaitley
had said the report of the Standing Committee on Science and Technology made
the supplier liable for damages only if a firm agreed to give it in writing.
The note added in the report included a word ‘and’ between clauses 17 (a)
and 17 (b) that diluted the suppliers’ liability. “The operator of a nuclear
installation shall have a right of recourse where (a) such right is
expressly provided for in a contract in writing; and (b) the nuclear
accident has resulted as a consequence of latent or patent defect, supply of
sub-standard material, defective equipment or services or from the gross
negligence on the part of the supplier of the material , equipment or
services; and (c) the nuclear accident has resulted from the act of
commission or omission of a person done with the intent to cause nuclear
damage,” the standing committee report had said.

BJP, which was unhappy about the government tampering with the agreed draft,
had pointed out that while clause 17 (b) gives protection to operators, the
word ‘and’ snatches it away. It said that clause 17 (a) provides for an
agreement in writing in order to enable the operator to exercise the right
of recourse against a supplier. “Since the nuclear power plants are to be
operated only by the government or government companies, it would be to our
own advantage to delete the word ‘and’ ,” Mr Jaitley told Mr Chavan.

Both BJP and Left are of the view that the government was acting under US
pressure. CPM general secretary Prakash Karat appealed to all parties
supporting the nuclear liability bill to reconsider their stand in the light
of the addition of the ‘notorious’ word ‘and’ in the report. “The real issue
is that the bill is being brought as a result of the demand of the US that
its suppliers are exempt from liability . India has already given the
commitment ,” he said at a press conference along with other Left leaders A
B Bardhan , Debabrata Biswas and Abani Roy. Mr Karat said that American
industries had objected to clause 17 (b) and now the government has made it
contingent on 17 (a). “The original bill was better. I would like to ask
parties supporting the bill to look at this. If ‘and’ is deleted, the
problem will be solved,” he said.
Asked if the Left will support the bill in that case, he said it would
depend on the final shape the legislation takes.

IT’S CHEATING

BJP alleged that a ‘clumsily’ stapled note into the report was stealthily
included later to dilute liability of the supplier BJP conveyed to the
government that it cannot bank on its support unless the required changes
are made to hold suppliers liable for nuclear damage With the govt keen on
ensuring passage of the bill in the ongoing session, it is expected to make
the required concessions to get BJP on board. CPM general secretary Prakash
Karat appealed to all parties supporting the nuclear liability bill to
reconsider their stand in the light of the addition of the word ‘and’ in the
report

BJP has said it wants an India-centric bill. Does it mean foreign suppliers
should have no liability?

III.
http://www.thehindu.com/news/national/article582670.ece?homepage=true

BJP won't back nuclear bill without supplier liabilityNEENA VYAS

We'll address BJP, Left concerns: Minister

The shortlived agreement on civil nuclear liability between the government
and the Bharatiya Janata Party gave way on Thursday to a fresh round of
bargaining with the Opposition party telling government managers it was not
ready to vote for the proposed bill if it diluted in any way the liability
of suppliers for accidents caused by their negligence.

As a result, the Cabinet meeting, which was to consider the report of the
Standing Committee on Science and Technology and approve the final version
of the nuclear bill, had to be postponed to Friday morning. Late in the
evening, Prime Minister Manmohan Singh met his advisers and colleagues to
sort out the fresh tangle.

“We will address all the concerns raised by the BJP and the Left,” a
Minister told reporters.

Earlier this week, BJP leaders Sushma Swaraj and Arun Jaitley hammered out
an agreement with Leader of the House Pranab Mukherjee in which several
changes in the proposed law were made. These were duly reflected in the
report of the Standing Committee, which was endorsed by all its members, BJP
MPs included, except two legislators from the Left.

After *The Hindu* on Thursday disclosed the manner in which the report
diluted the provision on suppliers' liability, BJP leaders protested their
innocence and suggested the government had made some changes that were
outside the understanding earlier reached.

Clause 17 of the bill deals with the nuclear operator's right of recourse
against a supplier. In a note given by BJP leaders to Minister of State in
the Prime Minister's Office Prithviraj Chavan, the party insists that clause
17(b) — which allows an operator to recover damages from his supplier in the
event that an accident is caused by negligence or defective equipment — must
not be made conditional on there being a prior contract with the supplier
spelling this out. By inserting the word “and” between 17(a), which speaks
of a contract, and 17(b), this was precisely what the government was doing,
the BJP said.

In short, the “right to recourse” — i.e., the ability of the operator, who
must compensate victims for any accident, to make his supplier liable —
should not depend on a specific operator-supplier agreement but must be part
of the Indian law that would place these conditions on all suppliers.

Mr. Jaitley told reporters that at the very least, a contract between the
operator and the supplier specifically stating supplier liability was a
“must” while Ms. Swaraj said that even if contracts relating to nuclear
commerce between other governments have been lax and provided for little or
no supplier liability, there was no reason why the Indian law should not be
more stringent and specific.

Ms. Swaraj added the BJP could consider moving an amendment if the
government were to move the bill for discussion and adoption without making
the changes on supplier liability.

The basic point that BJP leaders made was that all the strengthened
conditions spelt out in clause 17(b) that were added during discussions with
the government would kick in only if these were specifically spelt out in a
contract between the operator and the supplier (private foreign company or a
foreign government) as the bill stands at present. “Since nuclear power
plants are to be operated only by the government or government-owned
companies it would be to our advantage to delete the word ‘and' from the end
of clause 17(a),” Mr. Jaitley said.

The Business Advisory Committee of the Lok Sabha has allotted four hours'
discussion time to the bill next week, making it clear the government plans
to pass the legislation this parliamentary session.

IV.
http://www.thehindu.com/news/national/article582271.ece

‘Nuclear liability Bill will clip wings of India’s nuclear technology’K. P.
M. BASHEER

Former chairman of the Atomic Energy Regulatory Board, A. Gopalakrishnan,
has said the Civil Liability for Nuclear Damage Bill will lead to clipping
the wings of India’s indigenous nuclear technology capabilities.

Mr. Gopalakrishnan, a stringent critic of the India-U.S. nuclear deal, told
*The Hindu* that the new law would open the doors for the U.S. and French
nuclear industry to “extensively sell their very costly and unproven
light-water reactors (LWR) to India.”

He said that back in 2008, Prime Minister Manmohan Singh had, without
consulting the Indian Parliament or the public, promised the U.S.
administration to purchase 10,000 MWe worth of LWRs from that country. This,
Mr. Gopalakrishnan claimed, was under pressure from the U.S. administration
for getting the `123’ agreement passed by the U.S. Congress. Mr. Singh had
also promised French President Nicholas Sarkozy to purchase French reactors,
in return for his help to circumvent the Nuclear Suppliers Group’s
conditions. Without a liability law that lets the reactor manufacturers off
the hook in case of a nuclear accident, these companies would not dare to do
business with India, he said.

Mr. Gopalakrishnan pointed out that India is a leading country in thorium
breeder reactor technology and is poised to build thorium-based reactors
routinely by 2040. The country had abundant resources of thorium raw
material in the sands of Kerala’s shores. Moreover, the indigenous nuclear
technology capabilities would, in another ten years, enable India to design
and build 1000-MWe PHWRs (pressurised heavy water reactors.) “This is a
natural progression; we started off with 220 MWe reactors, now we are in the
process of building 700 MWe units , and soon we will acquire the capability
to build 1000-MWe reactors.” (The largest LWR India now plans to import is a
1650-MWe French reactor.)

He contended that the plan to import 40,000 MWe worth reactors during
2015-35 would shelve the thorium-based breeder reactor technology currently
under development. “We have two generations of top-class nuclear scientists
and engineers who have been painstakingly trained; we have the technological
and industrial capability; and we have abundant raw materials,” he said.
“All these will go to waste if we predominantly start relying on the import
of the highly expensive U.S. and French reactors.”

A reactor like the AP-1000 had not yet been built or tested even in the U.S.
Because of the lack of demand, the U.S. nuclear industry had been idle for
some time and it would take several years for them to get the reactors going
in India.

Mr. Gopalakrishnan thinks that had Prime Minister Singh’s secret promise (in
the form of a letter by India’s Foreign Secretary to the U.S.
Under-Secretary of State) on September 10, 2008 been made public at the
time, the Opposition parties and the public would not have perhaps let the
India-U.S. nuclear deal through. The commitment was made without a proper
techno-economic impact assessment, he alleged. That commitment would prove
to be fatal for India’s indigenous reactor technology, he said.

Mr. Singh had also promised that India would `take all steps necessary’ to
adhere to the Convention on Supplementary Compensation (CSC) for Nuclear
Damage. “The CSC Annex insists that the national law should legally channel
the liability for all nuclear accidents in India absolutely to the
`operator’ of the nuclear facility,” he pointed out. “This sell-out to the
U.S. administration has been kept from all the deliberations on the
liability Bill.” At the same time, he alleged, the desirability of joining
the CSC is highlighted by the government, using `false and baseless’
arguments.

“The unwarranted written assurance given by the Prime Minister to help
obtain the NSG clearance and the passage of the `123’ agreement has now come
to haunt the government in the context of the liability Bill,” he said.


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Peace Is Doable

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