India signs nuclear liability pact with US

Oct 28 (FLS): India finally signed a bilateral nuclear liability treaty with US on Wednesday which will enable it to enter into nuclear commerce with Washington.US had demanded India to sign the treaty as a step to reassure US suppliers entering the country’s fledgling $150 billion atomic power market.

International Atomic Energy Agency (IAEA) confirmed PTI in a Press conference that the treaty was signed today by India at the Agency in Vienna.

This treaty has been signed in the wake of visit of US President Barack Obama to India in next month when he will meet US business leaders in India. Though the Indian parliament passed the legislation in August to open up the domestic nuclear market but its nuclear liability law under which it directs the right to seek damages from plant suppliers if there is an accident.

However, US had asked India to ratify to the multilateral Convention on Supplementary Compensation for Nuclear Damage (CSC) to assure its suppliers that any liabilities would be in line with international norms.

The CSC provides for establishment of an international fund to increase the amount available to compensate victims and allows for compensating civil damage occurring within a State’s exclusive economic zone, including loss of tourism or fisheries related income.

The CSC would establish a global legal regime for the compensation of victims in case of a nuclear accident. Fourteen countries, including the United States, have so far signed it.

It also includes provisions on a nuclear operator´s financial liability and requires that operators maintain insurance or other financial security measures.

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