Civil nuclear projects to be subject to Indian laws: NSA

NPCIL, Westinghouse close to signing an agreement

Civil nuclear projects in the country would be subject to Indian laws including on issues of civil liability, National Security Adviser Shivshankar Menon said today dismissing reports of attempts to dilute the liability clause in contracts proposed with US firms.

"I was surprised yesterday to see stories that somehow Indian law will not be applicable to nuclear projects in India. Civil nuclear projects in Indian would naturally be subject to Indian laws including civil liability," he said in his address at a think tank here.

Menon's views assume significance in the context of a huge controversy over media reports that the government was trying to dilute the nuclear liability clause in deals with American nuclear firms for buying reactors during Prime Minister Manmohan Singh's Washington visit next week.

He said India's stand has consistently been that "whatever nuclear power parts are imported, they should meet the highest standards of safety and deliver power at competitive prices".

Terming the civil nuclear agreement of 2008 as the symbol of transformed relationship between India and the US, Menon said the two sides have resolved all government-to-government permissions and understandings required for enabling commercial negotiations between NPCIL and Westinghouse and for AERB to begin its independent valuation of the safety of the proposed nuclear power plants.

Asked if India was close to signing an agreement between National Power Corporation of India Limited (NPCIL) and US firm Westinghouse before the Prime Minister leaves for the US, Menon said, "Yes, we are close."

He was replying to questions at a function on the ties between India and the US organised by the ASPEN Institute India.