The "Breakthrough" (or "Breakthrough Understanding"?) on Nuclear Agreement
between Modi and Obama

A Reality Check



Sukla Sen



*The (Illusory?)"Breakthrough"*

"At the start of a three-day U.S. presidential visit rich with pageantry
and symbolism, President Obama and Indian Prime Minister Narendra Modi said
Sunday [Jan. 25 2015] that the two countries have made progress toward
resolving a long-standing impasse on civilian nuclear cooperation.

"Obama said that the United States and India have reached a "breakthrough
understanding" that would make it easier for U.S. firms and others abroad
to invest in Indian nuclear power plants. Indian law holds suppliers,
designers and builders of plants liable in case of an accident, making
companies reluctant to invest in the plants. The two countries have also
long failed to agree on how to track nuclear material."1

In India, the ruling dispensation tom-tommed it as a major "breakthrough"
or achievement.2


It was, however, only after a lapse of two weeks, the Indian Ministry of
External Affairs, after much prodding, on Feb. 8, eventually released the
details of the "breakthrough": *Frequently Asked Questions and Answers
[FAQ] on Civil Liability for Nuclear Damage Act 2010 and related
issues*'3 While
a section of the media has clearly welcomed it4; this time, at least one
sceptic voice has found space right at the very beginning5.

Here, it may not be quite out of place to mention in passing that at the
time of the announcement, on Jan. 25 last, the specifics of the
"breakthrough", as it now transpires6, were yet to be fully worked out. So
it won't be too unfair to infer that *the announcement involved an element
of deliberate deception*.



*The Issue*

As The Washington Post report, cited above, makes out, prior to Obama
visit, there were essentially two friction points: one, supplier's
liability; two, the US right to keep tracking all nuclear materials
delivered by any US-based entity.

As regards the second requirement, the US President, on Jan. 25, made a
concession by waiving off, under his executive authority, the originally
envisaged requirement under the 123 agreement [of the U.S. Atomic Energy
Act] and the *Hyde Act* of 2008 of (intrusive) "tracking".7 A US
spokesperson clarified: "The United States is satisfied that the
information we will receive . . . including through information exchanges
and a consultative mechanism, will provide enough information to meet the
requirements under the 123 agreement, as well as allow for the necessary
certifications to Congress as required by the Hyde Act."1 However, doubts
have been raised whether the US President has the powers to grant such
waiver.8 One would also wonder whether a waiver granted under executive
authority of the US President can be scrapped as easily, again under
executive authority, by the present President or a successor of his. Not
only that, subsequently, questions have been raised as regards the very
extent of "concession" made by the US.9



*The Relevant Sections of CLNDA *

Be that as it may, the "supplier's liability" issue essentially refers to
two specific sections of the *Civil Liability for Nuclear Damage Act, 2010*
(CLNDA) (8): viz. sec. 17(*b*) and sec. 46.



Section 17 provides:

The operator of the nuclear installation, after paying the compensation for
nuclear damage in accordance with section 6, shall have a right of recourse
where -

(*a*) such right is expressly provided for in a contract in writing;

(*b*) the nuclear incident has resulted as a consequence of an act of
supplier or his employee, which includes supply of equipment or material
with patent or latent defects or sub-standard services;

(*c*) the nuclear incident has resulted from the act of commission or
omission of an individual done with the intent to cause nuclear damage.



Section 46 provides:

The provisions of this Act shall be in addition to, and not in derogation
of, any other law for the time being in force, and nothing contained herein
shall exempt the operator from any proceeding which might, apart from this
Act, be instituted against such operator.

And, a note on its right margin reads: Act to be in addition to any other
law.



*The FAQ on Sec. 17*

Now let us come to (a selected few of) the clarifications provided on Feb.
8.



*As regards the operator's "right of recourse" leading to "suppliers'
liability" as provided under the Sec. 17, and 17(b) in particular, of the
CLNDA, which in the global context is unique to India, a two-pronged
approach has been adopted to nullify this provision.*


In response to the Question 14 of the FAQ, it is provided: "The India
Nuclear Insurance Pool is a risk transfer mechanism formed by GIC Re and 4
other PSUs who will together contribute a capacity of Rs 750 crores out of
a total of Rs 1500 crores. The balance capacity will be contributed by the
Government on a tapering basis. The pool will cover the risks of the
liability of the nuclear operator under Section 6(2) of the CLND Act and of
the suppliers under Section 17 of the Act. The Pool envisages three types
of policies, including a special suppliers' contingency policy for
suppliers other than turn key suppliers."


So, an insurance pool of Rs. 1,5000.00 crore will be created by the GIC,
the apex public sector undertaking in the general (other than life)
insurance sector in combination with 4 other PSUs and backed up by the
Union Government to provide (three types of) risk covers to (i) the
operator, (ii) the (turn key) supplier and (iii) suppliers other than the
turnkey supplier. It is quite clear that there will be no reinsurance by
global insurance companies as is the normal practice in case of insurances
involving very large amounts in order to distribute the risks. So, any
compensation to be paid will come exclusively out of the Indian taxpayers'
money. That is quite extraordinary. Not only that, as the price of a
reactor will be "negotiated", the turn key supplier will, in all
probability, be allowed to jack up its price to factor in the cost of
insurance, if at all any. (One has got to specifically keep in mind the
sanctimonious sermon immediately following the quote cited above:
"Operators and suppliers instead of seeing each other as litigating
adversaries will see each other as partners managing a risk together." The
actual implications in this case may very well turn out to be quite
ominous.) Thus the turnkey supplier will be provided full risk cover,
either overtly or covertly, just *free*. It goes without saying that this
move completely defeats the very purpose and intent of the Sec. 17(*b*) of
the CLNDA without touching the Act itself and thereby enabling the
government to make this utterly ridiculous claim: "There is no proposal to
amend the Act or the Rules"10 (in response to the Question 3).

*Apart from the very relevant issue that who is ultimately made to pay in
case of an accident on account of a proven fault on the part of the (turn
key) supplier, arguably, even more important is the fact that the provision
for supplier's liability would have had made the supplier considerably more
circumspect as regards the quality of the supply than otherwise. Given
the potentially catastrophic nature of a nuclear power plant, that is of
immense importance. With free full risk cover for the turn key supplier
that aspect stands completely dispensed with*.

Just another minor point. The reference, in the quote above, to "the risks
of the liability of the nuclear operator under Section 6(2)" which tends to
suggest that hence the operator has to take an insurance is rather
misleading. The Rule 3(5) rather explicitly provides: "The provisions of
this rule [i.e. the Rule 3 which lays down the specifics of the Sec. 8(1)
of the CLNDA as regards the "insurance policy or such other financial
security or combination of both, covering his liability under sub-section
(2) of section 6"] shall not apply to a nuclear installation owned by the
Central Government." So, the NPCIL does not really need to take any
insurance cover, which is now being arranged as one of the three types of
insurance referred to above - in a way to rationalise the other two, as per
the Rules relating to the CLNDA.


Be that as it may, if the first prong of the two-pronged approach is to
nullify the Sec. 17(*b*) of the CLNDA in order to provide the turn key
supplier a full insurance cover for free at the cost of the Indian
taxpayers, then the second prong is constituted of a disingenuous attempt
to read down the said Sec. 17(*b*).

In response to Question 9 of the FAQ, it is provided: "Section 17 states
that the operator shall have a right of recourse. While it provides a
substantive right to the operator, it is not a mandatory but [merely] an
enabling provision. In other words it [only] permits but does not require
an operator to include in the contract or exercise a right of recourse."
And, then immediately follows: "However, even though there is no mandatory
legal requirement under the CLND Act to provide for a right of recourse in
a contract, there may be policy reasons for having a risk sharing mechanism
including a right of recourse. As a matter of policy, NPCIL, which is a
public sector undertaking, would insist that the nuclear supply contracts
contain provisions that provide for a right of recourse consistent with
Rule 24 of CLND Rules of 2011."


Before coming to the central issue - as laid out in the first quote in the
preceding para, let us make it clear that if the "right of recourse" is
merely an enabling provision, and *not* a mandatory one, then incorporating
this provision in the contract, in line with the Sec. 17(*a*) of the CLNDA,
would apparently hardly serve any purpose. Not only that, the deception,
embedded in the second quote, is even deeper. It actually talks of "a right
of recourse consistent with Rule 24 of CLND Rules of 2011." The sting here,
as the saying goes, is in the tail - i.e. the Rule 24.

The Rules were notified notified in November 2011, about a year after the
CLNDA being notified, in December 2010. While framing the Rules, a
conscious attempt was made to water down the provisions of the CLNDA which
had been the end product of a process of detailed, and heated, debates in
the parliament aided by high-pitched campaigns11 by and consultations, via
the parliamentary standing committee entrusted with the task of examining
the issue, with various sections of the civil society including "experts"
and activists engaged with the issue of nuclear power. Thus while the CLNDA
bears the imprint of this vigorous tussle, the framing of the Rules was
just a unilateral executive act, intended to significantly undermine the
Act passed by the parliament in order to mollify the potential suppliers of
nuclear power plants - from the US, in particular, but also from France and
Russia. Consequently, the Rule 24 effectively nullified the Sec. 17(*a*) of
the CLNDA by laying down unreasonably restrictive limits on time, for
lodging the claim, and also on the amount, which can be claimed.12 However,
for whatever reasons, the Rule 24 makes no mention whatever of the Sec. 17(
*b*) of the CLNDA. So it stood, even after framing and notification of the
said Rules, untouched and unscathed. And, any sensible reading of the Sec.
17, quoted in full above, would make it clear that both the 17(*a*) and 17(
*b*) would operate simultaneously and independently of each other, not as
"either-or". So, while the brave declaration that "(a)s a matter of policy,
NPCIL, which is a public sector undertaking, would insist that the nuclear
supply contracts contain provisions that provide for a right of recourse
consistent with Rule 24 of CLND Rules of 2011" is nothing but just hot air,
meant to deceive the uninformed, it is supplemented with the move to read
down the 17(*b*) itself.


There is of course nothing novel or original about the argument put forward
now that the "right of recourse" as provided under Sec. 17 is not meant to
be mandatorily exercised, it is up to the operator to opt or not to opt to
pursue this course. Even the UPA II had tried this line.13 Had obtained the
opinion of the then Attorney General to this effect. But had to abandon
this line in the face of vociferous opposition. Just to recount, in the
view of this writer expressed at that time, the "NPCIL being a state body
dealing with public money cannot just let an erring supplier off the hook
at its whims and fancy at a great cost to the Indian tax paying citizens."
 At that time, the BJP also had vociferously opposed the contemplated move,
its leader in the Rajya Sabha, Arun Jaitley, now the Finance Minister in
the Modi Cabinet, had, in a signed article13A, argued: "If a public sector
company willfully enters into an agreement with a foreign vendor and
abdicates its' right to recourse which section 17(b) otherwise provides for
its' benefit, it would not only be violating the provisions of the Civil
Liability for Nuclear Damages Act but also section 13(1)(d) of the
Prevention of Corruption Act wherein a wrongful loss would be caused to the
revenue of a Public Sector company." Now, obviously, the boot is on the
other foot. But that does not make the, already tried and abandoned,
argument any more convincing just because the new regime has opted to adopt
and issue it. And *the clarifications issued, under the FAQ, by the
Ministry of External Affairs (MEA), Govt. of India do not, repeat not, have
the force of a law*.

One only wonders that having made the provision for free full insurance
cover, exclusively out of Indian taxpayers' money, what was the need for
such laughable acrobatics.



*The "Clarifications" regarding Sec. 46*

Now let us look at the implications of the Sec. 46 of the CLNDA and the
clarifications issued related to this.



In response to Question 11, the FAQ provides: "Concerns over the broad
scope of Section 46 have been raised by suppliers, both domestic and
foreign. Section 46 of the CLND Act provides that "the provisions of this
Act shall be in addition to, and not in derogation of, any other law for
the time being in force, and nothing contained herein shall exempt the
operator from any proceeding which might, apart from this act, be
instituted against such operator". The language in section 46 of CLND Act
2010 is similar to such language in several other legislations such as
Telecom Regulatory Authority Act, Electricity Act, Securities and Exchange
Board of India (SEBI) Act, Insurance Commission Act. Such language is
provided routinely to underline that other relevant laws continue to be
operable in their respective domains."

And, in response to Question 12: "The CLND Act channels all legal liability
for nuclear damage exclusively to the operator and Section 46 does not
provide a basis for bringing claims for compensation for nuclear damage
under other Acts. That this section applies exclusively to the operator and
does not extend to the supplier is confirmed by the Parliamentary debates
at the time of the adoption of this Act. It may be noted that the CLND Bill
was adopted by a vote. During the course of the vote on various clauses of
the Bill, in the Rajya Sabha two amendments were moved for clause 46 that
finally became Section 46 of the CLND Act that inter-alia sought to include
suppliers in this provision. Both those amendments were negatived. A
provision that was expressly excluded from the statute cannot be read into
the statute by interpretation. It is well-settled principle of law that
every statute is to be interpreted in accordance with the intention of the
legislature or maker of the Statute (M/s. Turtuf Safety Glass Industries V
Commissioner of Sales Tax U.P., 2007 (9) SCALE 610, and State of Kerala &
Anr V P.V. Neelakandan Nair & Ors, 2005 (5) SCALE 424)."

Further, in response to Question 13, it is argued, in the same tortuous
manner as above, that the Sec. 46 does not enable the victims of a nuclear
accident to sue the supplier in a foreign court. It, however, keeps the
 issue somewhat open whether a victim is outright prohibited from
approaching a foreign court.

Now, *these are only clarifications, or interpretations - regardless of
whether considered silly or profound, issued by the executive having no
legislative backup or judicial authority whatever and thereby, as already
pointed out above, do not have the force of law*.

These are at best a set of legal arguments14, out of a number of possible
ones, and not binding on anyone. These just cannot stop the potential
litigants from litigating, nor the judicial authorities while passing
judgement will be in any way bound by these clarifications.

Very similar would be the case with any "legal memorandum" issued by the
Attorney General.15



*Conclusion*

*So, in sum, while the Sec. 17(b) of the CLNDA is all set to be completely
subverted through the provision of free full insurance coverage to the
turnkey suppliers out of exclusively Indian taxpayers' money, though the
backup move to read down this provision of the Act does not appear to
amount much; the issues as regards the Sec. 46 appear to remain pretty much
unresolved.*

And, the proof of the pudding will surely be in the eating.16

In that context, a proverbial straw in the wind is provided by a more
recent news report, datelined Feb. 13 2015.17 It says: "It's still really
early," Danny Roderick, chief executive of Toshiba unit Westinghouse [one
of the two US-based suppliers identified for supply of nuclear
reactors/plants], told reporters [on Feb. 12 2015, i.e. four days after the
issue of subject MEA clarifications] after an industry event in New York.
"You have to realize *these are documents that are going to take months and
months to review* [emphasis added]."



So, *while the Government of India, in its insane drive to import nuclear
reactors - which cannot be justified in terms of cost considerations and,
far more importantly, carries the stupendous risk of catastrophic accidents
(that is precisely why there is so much fuss about the liability clause)
 apart from being routinely hazardous - from abroad, and the US in
particular, to boost India's nuclear power programme - a perpetual laggard**18,
at a time when globally nuclear power is very much on a declining curve19** -
with China, Russia, India, S. Korea and the US leading the rather smallish
pack, of just 14 countries, planning to build new reactors, has tried too
hard to treacherously subvert an Act passed by the Indian parliament to
appease and lure the potential suppliers; a significant hurdle - even if
not insurmountable, apparently, continues to remain in place, nonetheless.*.



 Feb. 16 2015



*The author is an anti-nuclear peace activist and a founder member of the
Coalition for Nuclear Disarmament and Peace (CNDP), India. *



Notes and References:

1. See: *Obama, India's Modi claim breakthrough on nuclear issues* by Katie
Zezima, Jan. 25 2015, at <
http://www.washingtonpost.com/world/obama-indias-modi-claim-breakthrough-on-nuclear-issues/2015/01/25/cd459e92-a33c-11e4-91fc-7dff95a14458_story.html
>.

2. Ref., for example: "Indian Foreign Secretary Sujatha Singh later
confirmed that agreement has been reached. "We have broken the logjam of
the past few years. We have reached an agreement. The deal is done," Singh
said after extended discussions between Obama and Modi lasting more than
three hours." See: *India and US announce nuclear 'breakthrough' after
Modi-Obama talks*, Jan. 26 2015, at <
http://www.hindustantimes.com/india-news/india-us-reach-agreement-on-landmark-on-nuke-deal/article1-1310542.aspx>.
Also see: *Obama, Modi achieve breakthrough in civil nuclear over
one-on-one talks*, Jan. 25 2015, at <
http://indianexpress.com/article/india/india-others/obama-modi-achieve-breakthrough-in-civil-nuclear-deal-over-tea/>,
*Modi, Obama announce nuclear breakthrough after talks*, Jan. 25 2015,
at<http://
timesofindia.indiatimes.com/india/Modi-Obama-announce-nuclear-breakthrough-after-talks/articleshow/46012040.cms>,
*Modi, Obama walk the talk on nuke deal* by Suhasini Haidar, Jan. 25 2015,
at <
http://www.thehindu.com/news/national/obama-in-india-barack-obama-narendra-modi-walk-and-talk-nuke-deal/article6821020.ece?ref=relatedNews>.
Of course, contrarian views started appearing after a brief while: *Nuclear
deal no cause for celebration* by Suvrat Raju and M V Ramana, Jan. 31 2015,
at <
http://www.thehindu.com/opinion/op-ed/nuclear-deal-no-cause-for-celebration/article6839852.ece
>, Liability risks in India-US nuke deal transferred to taxpayers by Brahma
Chellaney, Feb. 3 2015, at

<
http://www.hindustantimes.com/analysis/the-liability-risks-in-india-us-nuke-deal-have-been-transferred-to-indian-taxpayers/article1-1312969.aspx>,
*Nuclear power plants at what cost?* by Yogi Aggarwal, Feb. 3 2015, at <
http://dc.asianage.com/columnists/nuclear-power-plants-what-cost-069>, *The
nuclear 'breakthrough' is mostly hype* by SA Aiyar, Feb. 8 2015, at<
http://blogs.timesofindia.indiatimes.com/Swaminomics/the-nuclear-breakthrough-is-mostly-hype/?utm_source=Popup&utm_medium=Old&utm_campaign=TOIHP
>.

*The body blow, however, came from a US newspaper.* See: *Is the India
nuclear agreement really the 'breakthrough' Obama promised?* by Annie Gowen
and Steven Mufson, Feb. 4 2015, at <
http://www.washingtonpost.com/world/is-the-india-nuclear-agreement-really-the-breakthrough-obama-promised/2015/02/04/bc0b0dd2-abc1-11e4-8876-460b1144cbc1_story.html
>.

And, the activists in India also raised their dissenting voices: *Citizens
Speak Up against Modi Government's Brazen Move to Tamper with the Nuclear
Liability Act*, posted on Jan. 30 2015, at <
https://groups.yahoo.com/neo/groups/india-unity/conversations/messages/55429
>, *Nuclear liability bill* by Prabir Purkayastha, January 29 2015, at <
http://newsclick.in/category/tags/nuclear-liability-bill> and *The
'breakthrough' in Indo-US nuclear deal will bleed Indians every which way*
by Nityanand Jayaraman, Jan 29, 2015, at <
http://scroll.in/article/702944/The-%E2%80%98breakthrough%E2%80%99-in-Indo-US-nuclear-deal-will-bleed-Indians-every-which-way
>.

3. See: *Frequently Asked Questions and Answers on Civil Liability for
Nuclear Damage Act 2010 and related issues*, Feb. 8 2015, at <
http://mea.gov.in/press-releases.htm?dtl%2F24766%2FFrequently+Asked+Questions+and+Answers+on+Civil+Liability+for+Nuclear+Damage+Act+2010+and+related+issues
>.

4. See: *India clears air on nuclear liability, expects nuclear commerce to
start soon* by Indrani Bagchi, Feb. 8 2015, at <
http://timesofindia.indiatimes.com/india/India-clears-air-on-nuclear-liability-expects-nuclear-commerce-to-start-soon/articleshow/46163047.cms>.
Also: *Liability law won't be eased for nuclear deal: Government* by
Dipanjan Roy Chaudhury, Feb. 9 2015, at <
http://economictimes.indiatimes.com/news/politics-and-nation/liability-law-wont-be-eased-for-nuclear-deal-government/articleshow/46168114.cms>.
For a more neutral reporting: *Centre clarifies on Indo-US nuclear deal,
says Indian victims cannot sue foreign suppliers for N-accident*, PTI, Feb.
08 2015, at <
http://ibnlive.in.com/news/centre-clarifies-on-indous-nuclear-deal-says-indian-victims-cannot-sue-foreign-suppliers-for-naccident/527240-3.html
>.

5. See: *MEA clarification on nuclear deal draws flak* by Suhasini Haidar,
Feb. 9 2015, at <
http://www.thehindu.com/news/external-affairs-ministrys-clarification-on-nuclear-deal-breakthrough-draws-criticism/article6874180.ece>.
This has now been followed up with another significant critical view:
*Profitability
without accountability* by M V Ramana and Suvrat Raju, February 16 2015, at
<
http://www.thehindu.com/opinion/op-ed/comment-profitability-without-accountability/article6898851.ece
>.

6. "However, on Friday [i.e. Feb. 6], U.S. Assistant Secretary of State
Nisha Biswal, in an answer to a question from *The Hindu*, said the two
sides were still "trading papers" on the [subject] issue. The Ministry has
also not clarified on the "tracking" requirements of the U.S. on nuclear
material in India in its press release." (See: <
http://www.thehindu.com/todays-paper/tp-national/no-liability-for-supplier-unless-it-is-in-nuclear-contract-mea/article6872402.ece
>.)

7. "The US and India have been in a deadlock for six years, with Washington
insisting on tracking any nuclear material it supplied to India. *The US
president used his executive powers to waive away the measure* [emphasis
added] and agree that from now on, inspections of India's use of fissile
materials by the IAEA will suffice." See: *US, India reach 'breakthrough
understanding' on stalled civil nuke deal*, Jan. 26 2015, at <
http://rt.com/news/226099-us-india-nuclear-agreement/>.

8. "*U.S. nonproliferation experts also questioned whether Obama has the
authority to waive a requirement to track nuclear materials* [emphasis
added] that is part of the 2006 legislation that eased other restrictions
on exporting to India. "*It would appear that the U.S. side has caved*
[emphasis
added] on a requirement set by Congress in the 'Hyde Act' of 2008 for
implementation of any nuclear cooperation between the two countries that
there must be an extensive 'end-use monitoring' program to help ensure that
no U.S.-origin nuclear material or technology is diverted for military
purposes," Daryl G. Kimball, executive director of a nongovernmental group
called Arms Control Association, wrote in an e-mail to National Security
Council officials asking for clarification." See: <
http://www.washingtonpost.com/world/obama-indias-modi-claim-breakthrough-on-nuclear-issues/2015/01/25/cd459e92-a33c-11e4-91fc-7dff95a14458_story.html
>.

9. "But, *now it turns out that the United States has not lowered its
requirement of monitoring the use of nuclear material supplied to India*
[emphasis added]. They will not do it directly, but through the IAEA
monitoring team, which will have two US members, while inspecting the
reactors." See: *US to monitor Indian nuclear facilities through IAEA* by
Iftikhar Gilani, Feb. 6 2015, at <
http://www.dnaindia.com/india/report-us-to-monitor-indian-nuclear-facilities-through-iaea-2058486>.
And the report goes on to claim: "Further, India will share the data during
the annual consultation by a India-US contact group that helped in
achieving a "breakthrough" in the civilian nuclear deal during Obama's
visit."

Yet another report posits: "Obama officials said that the two sides came up
with a tracking system specific to India that will rely heavily on a series
of information exchanges, as well as some information that would come from
the International Atomic Energy Agency, which monitors some of India's
nuclear plants." See: <
http://www.washingtonpost.com/world/is-the-india-nuclear-agreement-really-the-breakthrough-obama-promised/2015/02/04/bc0b0dd2-abc1-11e4-8876-460b1144cbc1_story.html
>.

10. See: *THE CIVIL LIABILITY FOR NUCLEAR DAMAGE ACT, 2010 *at <
http://lawmin.nic.in/ld/regionallanguages/THE%20CIVIL%20LIABILITY%20OF%20NUCLEAR%20DAMAGE%20ACT,2010.%20(38%20OF2010).pdf>
and the *Civil Liability for  Nuclear Damage Rules, 2011* at <
http://www.prsindia.org/uploads/media/Nuclear%20Rules/Civil%20Liability%20for%20Nuclear%20Damage%20Rules%202011.pdf
>.

11. See, for example: *Nuclear Liability Cap Bill to Congress-led Standing
Committee*, posted on May 13 2010, at <
https://groups.yahoo.com/neo/groups/india-unity/conversations/topics/36899
>, *CNDP Representation on 'Civil Liability for Nuclear Damage Bill 2010'
to Parliamentary Standing Committee on Science & Technology*, posted on
June 19 2010, at <
https://groups.yahoo.com/neo/groups/india-unity/conversations/topics/37390>,
 *Fwd: Supplementary Submission on 'Civil Liability for Nuclear Damage Bill
2010' to Parliamentary Standing Committee on Science & Technology,
Environment & Forests*, posted on June 28 2010, at <
https://groups.google.com/forum/#!msg/greenyouth/u5uk4SqJjuQ/Xqsqbmo_2SMJ>,
*India:
The Civil Liability for Nuclear Damage Bill 2010 - Some Tentative
Observations* by Sukla Sen, March 31 2010, at <
http://www.europe-solidaire.org/spip.php?article16897> and The great
nuclear folly by Praful Bidwai, March 21 2010, at <
http://archive.thedailystar.net/newDesign/news-details.php?nid=130882> .

12. See: *CNDP Statement on Circumvention of Supplier's Liability under the
Civil Liability for Nuclear Damage Act, 2010*, Nov. 18 2011, at <
http://unitedblackuntouchablesworldwide.blogspot.in/2011/11/cndp-statement-on-circumvention-of.html>.
And, for a more detailed discussion, *Disingenuous Diplomacy to Push
Forward BJP's Nuclear Policy* by Sukla sen, posted on July 3 2014 - its end
portion, in particular, at <
https://groups.yahoo.com/neo/groups/india-unity/conversations/topics/54143>.

13. See: *The Attorney General's interpretation of nuclear liability law is
legally untenable: Sukla Sen*, Sept. 21 2013, at <
http://www.dianuke.org/attorny-general-interpretation-of-nuclear-liability-law-is-legally-untenable-sukla-sen/
>

13A. See: *Diluting nuclear supplier's liability* by Arun Jaitley, Sept. 22
2013, at <
http://www.rediff.com/news/column/diluting-nuclear-suppliers-liability/20130922.htm
>.

Also: "According to reports, the Centre [ruled by the UPA II], had sought
the AG's (Attorney General) opinion on legality of a MEA (ministry of
External Affairs) proposal before the Cabinet Committee on Security, which
read, "Authorize Nuclear Power Corporation of India Ltd not to exercise
operators' right to recourse under Section 17 of the Civil Liability for
Nuclear Damages Act, 2010." The MES in its note is reported to have stated
that "We consider the section 17 of CLNDA is a kind of enabling provision;
it gives a specific right to operator but does not place any mandatory
obligation or requirement to exercise the right of recourse against
supplier. In the absence of a mandatory obligatory, the operator could
choose not to exercise that right. It is a statutory right and not a
fundamental right under the Constitution."" at <
http://www.idsa.in/backgrounder/IndianCivilLiabilityt_gbalachandran_240914.html
>.

14. In this context, it would not be totally out of place to draw attention
to how the very intent and purpose of the Indian parliament in enacting a
specific law - *The Muslim Women (Protection of Rights on Divorce) Act 1986*
 - to nullify the effects of the Supreme Court judgment in the  famous Shah
Bano case was subsequently largely nixed by the Supreme Court in the Daniel
Latifi case through "interpretation". (See: <
http://books.google.co.in/books?id=qvG01Oo_9kkC&pg=PA123&lpg=PA123&dq=danial+latifi+challenged+act&source=bl&ots=xOm0ys6L8I&sig=DXdI5gN1mRCtYl_PmQyeUHhwfiI&hl=en&sa=X&ei=uwdlU6-hPI22uAT4mID4BQ&ved=0CDsQ6AEwAw#v=onepage&q=danial%20latifi%20challenged%20act&f=false>
and <http://en.wikipedia.org/wiki/Mohd._Ahmed_Khan_v._Shah_Bano_Begum>, for
example.)

15. Despite the very obvious partisan polemical tone of the article, Kapil
Sibal, a senior Supreme Court lawyer and Congress leader, has, in it, quite
rightly argued: "The attorney general's opinion, in the form of a legal
memorandum, cannot amend the statute; it must be consistent with the
statute." (See: *Fact and fission*, Feb, 15 2015, at <
http://indianexpress.com/article/opinion/columns/fact-and-fission/99/>.)

16. S A Aiyar has thus rather aptly commented: "Finally, it's worth
reiterating that it's not enough to convince Obama, Hollande, Abe or Putin.
Even if these political leaders are satisfied, that will mean nothing
unless corporations like General Electric, Toshiba, and Areva are willing
to take the financial risk of supplying India." (See: *The nuclear
'breakthrough' is mostly hype*, Feb. 8 2015, at <
http://blogs.timesofindia.indiatimes.com/Swaminomics/the-nuclear-breakthrough-is-mostly-hype/?utm_source=Popup&utm_medium=Old&utm_campaign=TOIHP>.)
It is, in a way, an echo of: "Analysts say the real test will be whether
the two U.S.-Japanese companies sign commercial contracts with the Nuclear
Power Corporation of India." (See: <
http://www.washingtonpost.com/world/is-the-india-nuclear-agreement-really-the-breakthrough-obama-promised/2015/02/04/bc0b0dd2-abc1-11e4-8876-460b1144cbc1_story.html
>.)

Also noteworthy: "*Ultimately it's up to the companies to go forward*
[emphasis added], but the two governments [i.e. the US and India] came to
an understanding," Richard Verma told the press. See: <
http://rt.com/news/226099-us-india-nuclear-agreement/>
17. *Westinghouse to work on India nuclear plan before liability resolved -
CEO* at <
http://in.reuters.com/article/2015/02/12/toshiba-westinghouse-india-idINKBN0LG2N620150212>.
Of course, it indicates some softening of the stand on the part of the
vendor, but the final outcome remains still pretty much uncertain. And,
there, apparently, is no word as yet from the GE-Hitachi - the other
US-based identified supplier, beyond that it looks forward "to reviewing
the governmental agreement." (See: <
http://www.washingtonpost.com/world/is-the-india-nuclear-agreement-really-the-breakthrough-obama-promised/2015/02/04/bc0b0dd2-abc1-11e4-8876-460b1144cbc1_story.html
>.) While the Rosatom of Russia has eventually appeared to have reconciled
itself to the CLNDA, having failed to extract any special concession on the
liability aspect even after much tussle (see: *Modi-Putin Talks: Russia to
Supply 12 (or 10?) Nuclear Reactors over the Next 20 Years (despite
Appalling Performance in Koodankulam*, Dec. 12 2014, at <
https://groups.yahoo.com/neo/groups/india-unity/conversations/messages/55183>,
and, also, <
http://www.idsa.in/backgrounder/IndianCivilLiabilityt_gbalachandran_240914.html>
), the liability issue still remains to be sorted out between India and
France/Areva (see: *The Yet Unresolved Nuclear Liability Row between France
and India*, Feb. 5 2015, at <
https://groups.yahoo.com/neo/groups/india-unity/conversations/messages/55463
>).

18. See: *The Limited Future of Nuclear Power in India* by M. V. Ramana,
July 2013, at <http://www.aps.org/units/fps/newsletters/201307/limited.cfm>.

19. See: *The rise and fall of nuclear power, in 6 charts*, updated by
 Brad Plumer on January 30 2015, at <
http://www.vox.com/2014/8/1/5958943/nuclear-power-rise-fall-six-charts>.




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Peace Is Doable

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