["India has quietly skirted this provision [of nuclear liability] with
Russia by insuring Moscow's reactors without, in effect, charging any
premiums -- resulting in Indian taxpayers bearing the entire cost of
any potential damages because of the liability law."
That's something entirely new!
The issue is how credible?

The Koodankuam reactors 1 & 2 remained very much outside the purview
of the said liability Act, as these were (deemed to be) supplied under
an agreement signed between India and (still existing "Socialist")
USSR. (That's why Prakash Karat, in a great show of logical
gymnastics, supported the supply of Koodankulam 1 & 2 but refused to
do so for any subsequent Koodankulam reactors. Anyway, that's just an
aside.)

The last time we had heard of Koodankulam 3 & 4 is this: "Russia too
is reported to have communicated an "in principle" nod to the Indian
nuclear liability law, ***paving the way for signing a contract for
the setting up the third and fourth units of the Kudankulam Nuclear
Power Project*** [emphasis added]."
That means the "contract" is yet to be signed.
As regards insurance in the context of liability Act:
<http://ibnlive.in.com/news/nuclear-liability-centre-asks-gic-to-work-on-insurance-plan-for-reactors/498960-3.html>.

What, however, is more important that there is again keen anticipation
of the liability Act being tweaked. (If weak-kneed Manmohan had
failed, the macho man Modi will deliver!)
Of course, this is not the first time such expectation are being aired.
But we've got to be on our toes.]

http://www.telegraphindia.com/1141017/jsp/nation/story_18935579.jsp#.VEEHx3DYaYI.gmail

Private firms to join US nuke talks  CHARU SUDAN KASTURI

*New Delhi, Oct. 16: *India and the US are for the first time inducting
private nuclear firms in diplomatic talks on the controversial liability
law, offering the clearest hint yet of Delhi's new flexibility on resolving
a dispute critical to bilateral ties.

The inclusion of Indian manufacturers in the talks with the US signals a
previously unseen recognition from Delhi that its liability law may need
amending because it hurts not just foreign companies but domestic firms too.

Indian firms such as Larsen and Toubro, involved in manufacturing nuclear
components, have, like their foreign counterparts, been critical of the
country's liability regime, far more stringent on suppliers than any other
international nuclear safety law.

The government has so far refused to even contemplate tweaking India's laws
amid fears of allegations of capitulating to overseas pressure.

The decision to include private nuclear firms from both countries in the
talks was taken during Prime Minister Narendra Modi's recent visit to
Washington, said senior officials from both countries who independently
detailed key elements of the plan to *The Telegraph*.

"We see this as a definite, significant move forward on solving this
problem that has basically kept the Indo-US nuclear deal stillborn," a US
official said. "After years, we're possibly finally headed in the right
direction."

The dispute revolves around provisions -- in India's 2010 nuclear liability
law -- that effectively expose nuclear suppliers to unlimited damages in the
event of an accident. India has quietly skirted this provision with Russia
by insuring Moscow's reactors without, in effect, charging any premiums --
resulting in Indian taxpayers bearing the entire cost of any potential
damages because of the liability law.

But while that slightly underhand strategy worked with Russia -- where the
nuclear agency is publicly owned -- finding a similar solution without
tweaking the liability law is a lot harder with the US.

American nuclear firms Westinghouse and General Electric, which are
interested in selling reactors to India, are privately owned, and depend on
credit ratings that in turn hinge on their publicly known exposure to
accident damages.

Any move by the government to agree to amend even widely accepted flaws in
the liability law is, however, a political risk. Opposition parties are
likely to portray the move as the Modi government buckling under US
pressure.

The new round of talks presents a way out.

These will not be called bilateral negotiations, but the deliberations of
an expert "group", officials said, a formulation that will allow the
panel's recommendations to appear bipartisan, raising their political
acceptability, especially in India.

Officials from the ministry of external affairs, the state-owned Nuclear
Power Corporation of India Limited and private Indian firms like L&T will
be the Indian members on the panel. The US will be represented by officials
from the state department, the department of energy, Westinghouse and GE.

Modi had hinted at his personal desire to achieve a breakthrough in talks
that have stalled over India's liability law in New York, where he met Jeff
Immelt, the CEO of GE. "The Prime Minister told the GE CEO that he had a
personal interest in breaking the logjam because one of the nuclear plants
is coming up in his home state Gujarat," an official present at the meeting
between Modi and Immelt said.

Mithi Virdi in Gujarat is one of the sites picked by Westinghouse to set up
what would be India's single largest nuclear power plant -- if the dispute
is resolved.

The panel, officials said, will be set up this month and will meet by early
November.



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Peace Is Doable

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