Center for Study of Science, Technology and Policy, Bangalore

27th January, 2014

The Indian Nuclear Civil Liability for Nuclear Damage Act, 2010

Background

• India is a fast growing economy and needs energy in abundance

• India promotes all forms of energy to meet its energy demands and nuclear power is one of them

• Signing of safeguard agreement with IAEA and decision of NSG in 2008 made the international co operation in civil nuclear trade possible

• Out of 20 nuclear power reactors, 18 are indigenously constructed and operated by NPCIL

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Background (Contd)

• India has an ambitious program for the coming decades about ~450GWe by 2050 (A. Kakodkar, 2013)

• This expansion of the program provides a great opportunity for participation

• The Indian nuclear power program is supported by the Indian industries

• They are conversant with international codes/specifications and best practices

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The Indian Civil Liability for Nuclear Damage Act, 2010

• The act was passed by the parliament in August 2010

• There are rules associated with the act which was framed in 2011

• India has signed CSC and intends to ratify in due course of time

• Is there a problem with the Indian Civil Liability Law?• Indian government does not think so but suppliers are not

happy with this act

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The Indian Civil Liability for Nuclear Damage Act, 2010 (Cont)

• The unhappiness appears to stem out primarily due to clause 17 of the act

• Perceived lack of clarity on suppliers/sub-suppliers liability in terms of cost and time

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Clause 17

The operator has the 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.

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Rule 24

• Right of Recourse:

1. A contract referred to in clause (a) of section 17 of the act shall include a provision for right of recourse for not less than the extent of the operator’s liability or the value of the contract itself, whichever is less

2. The provision of the right of recourse referred to in sub-rule (1) shall be for the duration of initial license issued under the Atomic Energy rules, 2004 or the product liability period, whichever is longer

The product liability period is defined as:• “The period for which the supplier has taken liability for patent or latent defects or sub-standard

services under a contract”.

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About CSTEP

Center for Study of Science, Technology and Policy (CSTEP) is a not-for-profit research organisation. As one of the largest Think Tank in South-East Asia, its vision is to enrich the nation with technology-enabled policy options for equitable growth. CSTEP has grown to become a multi-disciplinary policy research organisation in the areas of Energy, Infrastructure, Materials, Climate Adaptation and Security Studies.

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The Project and its objectives

The Study by CSTEP intends to provide a tailored analysis of the Civil Liability for Nuclear Damage Act, 2010 to the UK companies

The objectives are as follows:•Critically compare the Civil Liability for Nuclear Damage Act, 2010 with other international conventions

•Analyze the legal issues related to the act

•Identify changes in the act if at all required

•The implication of the act to various UK suppliers and identify the perceived constraints

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Outputs

• The study would involve an in-depth analysis of the act

• Issues requiring government consideration will be highlighted

• Efforts will be made to generate a dialogue between the concerned parties to facilitate nuclear trade

• Participation in this event and discussing concerns of UK nuclear supply chain companies is a significant step in the CSTEP study

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Conclusion

We see a great opportunity for UK industries to be partners in the Indian Nuclear Program. Historically there were many industries who had participated in the Indian program by supplying high integrity and quality products with a good record of performance. We expect this to continue and we hope our study will facilitate this.

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Thank You

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