The CCS was to consider the note in its meeting on Friday. However, the meeting has been rescheduled for 24 September and it was not clear whether the proposal will be part of the fresh agenda for Tuesday’s meeting.
The note came following an opinion of the Attorney General G E Vahanvati, in which he said that it is up to the nuclear plant operator, in this case Nuclear Power Corporation of India Ltd (NPCIL), to invoke section 17 of the Civil Liability for Nuclear Disaster Act regarding liability of suppliers in case of a mishap.
The Attorney General’s opinion paves the way for the NPCIL, which will operate any nuclear plant using imported reactors, to repudiate a right that Parliament explicitly wrote into section 17(b) of the law to ensure that foreign suppliers don’t get away scot-free if a nuclear accident is traced back to equipment or material with patent or latent defects or sub standard services.
In an effort to counter the controversy, the Department of Atomic Energy (DEA) on Thursday asserted that any contract signed will be fully consistent with Indian law. DAE also said NPCIL will enter into a preliminary contract with America’s Westinghouse only with the approval of Atomic Energy Commission (AEC) and the government. According to the note, there is a proposal to sign a ‘Preliminary Contract’ between NPCIL and Westinghouse Electric Company (WEC) to buy six 1000 MW nuclear reactors at a cost of USD 15.16 million for a power plant to be set up at Chayya-Mithivirdi in Gujarat.
The note evoked sharp reaction from political parties, with Bharatiya Janata Party (BJP) saying reports of India compromising on crucial clauses in the Nuclear Liability Act regarding fixing of liability is worrisome and alleged that Prime Minister Manmohan Singh has allowed this to give a gift to American companies during his forthcoming visit to the United States.
Warning that it would be an ‘illegal act’ on part of the government if tried to dilute the liability act, Left parties said ‘it is evident that the UPA government is succumbing to the pressure of the US administration to safeguard their companies’ interests. But this cannot be at the expense of the interests of the country.’
The government sought to downplay the controversy saying there will be no dilution on the issue and the country’s interest will be protected. External affairs minister Salman Khurshid said while India needs energy, it will get it at its own terms and conditions.