["The Indian law, put simply, makes the suppliers directly liable in
case of a nuclear accident while globally, the primary liability rests
with the operator."
Even in India the "primary"liability lies with the operator.
However, after paying out the compensations to the accident, or
"incident", affected people it can in turn claim it from the supplier
*in case* the responsibility for the accident can be pinned on the
supplier.
***That's of course unique in the global context; but evidently fair
and, even more importantly, compels the supplier to act in a far more
responsible way than otherwise. Which is of immense importance given
the fact that a nuclear power plant is *potentially* catastrophic.***

""The only nuclear cooperation that India has been able to conclude
with any of the countries with whom it has nuclear cooperation
agreements is in respect of nuclear fuel," G. Balachandran, a
consulting fellow at the New Delhi-based Institute for Defence Studies
and Analysis, said in a paper.
"In December, Modi had said that India is considering setting up 10
nuclear reactors with Russian assistance. ***In June, Russia agreed to
the Indian nuclear liability law*** [emphasis added], albeit
reluctantly. At present, with its 21 functional nuclear power plants,
India has an installed capacity of 5,780 MW, or less than 3 percent of
its total power generation. India has lowered its target of installed
nuclear capacity from 63 GW by 2032 to 27.5 GW, as none of the
proposed projects have started."
The second paragraph clearly contradicts the preceding one.
Russia has committed to supply some 12 nuclear reactors over the next 20 years.]

http://www.ibtimes.com/obamas-india-visit-what-can-india-us-do-about-civil-nuclear-deal-1789416

Obama's India Visit: What Can India And The US Do About The Civil Nuclear Deal?
By  Aman Malik @PatrakaarPopat [email protected] on January 21 2015 3:26 AM

Kudankulam_Oct2012
Demonstrators stand in their boats in the Bay of Bengal during a
protest near the Kudankulam nuclear power project in the southern
Indian state of Tamil Nadu on Oct. 8, 2012. Reuters
Modi-Obama
U.S. President Barack Obama smiles as he hosts a meeting with Prime
Minister Narendra Modi in the Oval Office of the White House in
Washington, Sept. 30, 2014. Reuters/Larry
Kudankulam_Oct2012
Demonstrators stand in their boats in the Bay of Bengal during a
protest near the Kudankulam nuclear power project in the southern
Indian state of Tamil Nadu on Oct. 8, 2012. Reuters
Modi-Obama
U.S. President Barack Obama smiles as he hosts a meeting with Prime
Minister Narendra Modi in the Oval Office of the White House in
Washington, Sept. 30, 2014. Reuters/Larry

NEW DELHI -- On Wednesday, when representatives from India and the
United States meet for the third time since the nuclear contact
group's creation last year, officials from both countries would have
their task cut out in finding common ground that might generate action
out of the civil-nuclear agreement between India and the U.S., which
has been in a limbo ever since it was finalized in October 2008.

The nuclear contact group was created to expedite cooperation on the
deal after Indian Prime Minister Narendra Modi and U.S. President
Barack Obama met in Washington in September last year. And the latest
meeting's importance is highlighted by its timing -- just days before
Obama begins his second India visit on Sunday.

INDIA-U.S. NUCLEAR DEAL

It was in July 2005 that the framework for a civil-nuclear agreement
was first broached between the two countries, in a joint statement
between the then Indian Prime Minister Manmohan Singh and former U.S.
President George W. Bush. The final agreement was signed in August
2007.

Under the deal, the U.S. offered India full civil nuclear cooperation
after the latter agreed to separate its civilian and military nuclear
facilities, and open its civilian reactors up to inspections by the
International Atomic Energy Agency (IAEA). The deal was hailed as a
diplomatic coup of sorts for India, on which the U.S. and most of the
rest of the developed world had imposed sanctions after it conducted a
series of underground thermonuclear tests in May 1998.

THE LIABILITY QUAGMIRE

Since then, however, the deal has remained largely unfruitful owing
primarily to liability clauses imposed by a 2010 Indian legislation
that has been a stumbling block in the way of several other countries,
including the U.S., looking at selling nuclear reactors to India.

The Indian law, put simply, makes the suppliers directly liable in
case of a nuclear accident while globally, the primary liability rests
with the operator. If India were to follow global norms, the entire
liability in case of an accident would fall upon the Nuclear Power
Corporation of India, a government-owned company that operates all the
nuclear power plants in the country. Effectively, therefore, the
Indian government would be responsible for damages in case of a
mishap.

Moreover, another contentious section in the law potentially exposes
suppliers to unlimited liability, and getting insurers to cover
liability costs might prove nearly impossible, according to The Hindu,
a daily newspaper.

"The only nuclear cooperation that India has been able to conclude
with any of the countries with whom it has nuclear cooperation
agreements is in respect of nuclear fuel," G. Balachandran, a
consulting fellow at the New Delhi-based Institute for Defence Studies
and Analysis, said in a paper.

In December, Modi had said that India is considering setting up 10
nuclear reactors with Russian assistance. In June, Russia agreed to
the Indian nuclear liability law, albeit reluctantly. At present, with
its 21 functional nuclear power plants, India has an installed
capacity of 5,780 MW, or less than 3 percent of its total power
generation. India has lowered its target of installed nuclear capacity
from 63 GW by 2032 to 27.5 GW, as none of the proposed projects have
started.

India now wants to form a nuclear insurance pool to cover suppliers of
both its existing nuclear plants and the ones that are set up under
the several civil nuclear agreements that it has signed. And, while
India may not be able to change the law, as it has been passed by its
parliament, the insurance pool is reportedly being seen as the most
workable way around it.

NUCLEAR SUPPLIERS GROUP

India has also been seeking entry into the 48-member Nuclear Suppliers
Group (NSG), which incidentally, was created in the wake of India's
first nuclear test in 1974. In July, India had ratified an additional
protocol to its safeguards agreements with the IAEA, and had also said
that it would put two additional reactors under the atomic regulator's
purview by the end of 2014.

"As a critical step in strengthening global nonproliferation and
export control regimes, the President (Obama) and Prime Minister
(Modi) committed to continue work towards India's phased entry into
the Nuclear Suppliers Group (NSG), the Missile Technology Control
Regime (MTCR), the Wassenaar Arrangement and the Australia Group. The
President affirmed that India meets MTCR requirements and is ready for
membership in the NSG.  He supported India's early application and
eventual membership in all four regimes," the two countries had said
in a joint statement at the end of Modi's U.S. visit.

And, Modi reportedly wants to follow up on it by pushing Obama to
support India on its membership bid at the NSG. Yet, this may prove to
be a challenge because misgivings about India's nuclear program
remain.

IHS Jane's, a think tank that publishes on defense matters, claimed in
June that it had found what might be a covert uranium enrichment site
near Mysore in southern India.

"This site in India will support new centrifuges that will
substantially expand India's uranium enrichment capacity, most likely
to facilitate the construction of an increased number of naval
reactors to expand the country's nuclear submarine fleet, but also, to
potentially support the development of thermonuclear weapons," it
said, adding that the facility could become operational in 2015.

Although Indian officials have denied the report, it has fuelled
speculation that the country has a covert nuclear program, something
that will only make it harder for India to have a shot at the nuclear
high-table.

-- 
Peace Is Doable

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