Nuclear Liability Treaty

Convention on Supplementary Compensation for Nuclear Damage (csc)

At a Diplomatic Conference at International Atomic Energy Agency (IAEA) Headquarters in Vienna, 8-12 September 1997, delegates from over 80 States adopted a Protocol to Amend the 1963 Vienna Convention on Civil Liability for Nuclear Damage and also adopted a Convention on Supplementary Compensation for Nuclear Damage.

The CSC also allows for compensating civil damage occurring within a State's exclusive economic zone, including loss of tourism or fisheries related income. It also sets parameters on a nuclear operator’s financial liability, time limits governing possible legal action, requires that nuclear operators maintain insurance or other financial security measures and provides for a single competent court to hear claims.

The IAEA is the “depository” of the CSC, which has so far been signed by 14 countries and ratified by four, including the U.S. At the moment four States have signed and ratified the Convention - Argentina, Morocco, Romania and the United States. India's signing brings a total of 14 States as current signatories to the Convention. The Convention is set to enter into force on the ninetieth day after date of ratification by at least five States who have a minimum of 400,000 units of installed nuclear capacity.

Nuclear Liability Act

To facilitate nuclear commerce and attract U.S. private companies involved in nuclear commerce, it is necessary to pass the Civil Liability for Nuclear Damage Bill also known as Nuclear Liability Bill. Nuclear Liability Bill will thus define the financial and legal liabilities upon the involved groups, manufacturers, operators and government in case a nuclear accident occurs. In this case the suppliers and builders will be the U.S. private companies and the operator will be the Indian government controlled Nuclear Power Corporation of India Limited (NPCIL).

Why is it necessary ?

India has an ambitious and indigenous nuclear power program to achieve the goal of 20,000 MWe electricity produced through nuclear energy by 2020 which will be further increased to 60,000 MWe by 2032. In this way, India will produce 25 percent of its electricity from nuclear power plants by 2050. Presently, India is producing 3981 MWe of electricity through nuclear power. The share of nuclear power can be increased with the involvement of foreign private involvement in manufacturing and supply of nuclear reactors.

India needed cooperation with the international community in the nuclear field as its own uranium resources are not adequately exploited, preventing adequate utilisation of atomic plants. The country has 1,47,000 tonnes of known uranium resources but in certain areas like those in Meghalaya and Andhra Pradesh, mining is yet to begin because of "local" and environmental reasons.

To reap the benefits of Indo-U.S. Civilian Nuclear Deal of nuclear commerce and attract the U.S. companies involved in nuclear commerce like General Electric and Westinghouse, it was necessary to bring a liability act which would help these private companies in getting insurance cover in their home state. Thus, the act will help in the realization of the Indo-U.S. Nuclear deal.

There is no international obligation as such for the act. Some countries of the Nuclear Supplier’s Group (NSG) like France and Russia do not require any kind of liability act for nuclear trade. Both of these countries have shown interest in nuclear collaboration with India. Still, there are some countries in the group like U.S. which require the host country to have a liability act for a possible nuclear accident.

After the enactment of the Nuclear Liability Bill, India will join the international convention on liability in the civil nuclear arena. India will thus be benefited by the nuclear trade with the participating countries in the nuclear arena. The act shall necessitate suitable amendments in the Atomic Energy Act 1962 which will pave way for private investment in the Indian nuclear power program.

The motive behind the act is also to legally and financially bind the operator and the government to provide relief to the affected population in the case of a nuclear accident. But the amount of financial assistance and legal relief is a point of debate as it is being considered insufficient and unsatisfactory.