Global Security Newswire

India's Parliament last week passed the divisive nuclear liability bill, paving the way for implementation of the landmark 2008 U.S.-Indian civilian atomic trade agreement, Reuters reported (see GSN, Aug. 25).

The Aug. 30 passage by Parliament's upper house occurred ahead of U.S. President Barack Obama's planned November visit to the South Asian state.

The Civil Liability for Nuclear Damage Bill received the support of India's leading opposition party, Bharatiya Janata, when the government acceded to stronger terms against nuclear suppliers and power plant operators that business groups said might limit development of India's burgeoning atomic energy industry.

Under the measure, plant operator liability in the event of an atomic incident was increased to about $320 million and the suppliers of nuclear materials and technology could also be sued (Prusty/Kuncheria, Reuters, Aug. 30).

Some experts believe the harsh measures could lead to weaker implementation of the atomic agreement that permits U.S. nuclear firms to export atomic technologies and materials to the nuclear-armed nation in exchange for India agreeing to open up its civilian atomic sites to international monitors, the New York Times reported.

A key foreign affairs initiative of the Bush administration, the 2008 deal ended New Delhi's decades-long status as a nuclear pariah. A number of other nations have also now established their own atomic trade deals with India.

International rules presently limit liability to the operators of nuclear power plants. By including language that leaves open the potential for suppliers to be held responsible for a mishap, the Indian legislation goes against worldwide norms.

"This makes the fruits of the Indo-U.S. deal go to waste," New Delhi-based security analyst G. Balachandran said. "It may well be the end of civil nuclear growth in India."

Leading Bharatiya Janata Party lawmaker Arun Jaitley defended the legislation, saying it permits a nuclear plant operator to file suit against suppliers only under specific conditions (Jim Yardley, New York Times, Aug. 30).

Sudhinder Thakur, executive director of the state-owned Nuclear Power Corp. of India Ltd., said in released comments that "no manufacturer, Indian or foreign, would be able to serve the nuclear power industry" in his nation due to the legislation, the Washington Times reported Sunday.

The liability bill will be "a significant deterrent not only to U.S. business but, equally importantly, to Indian and other international private business as well," said Ashley Tellis, who took part in the U.S.-Indian atomic deal negotiations.

"It's going to be interesting to see whether the Indians, now that they have passed this law, are going to stick to their guns or cave under possible U.S. pressure to reverse course," Nonproliferation Policy Education Center Executive Director Henry Sokolski said (Ashish Kumar Sen, Washington Times, Sept. 5).