House panel for supplier liability in N-mishaps

Addressing a major apprehension of the Opposition, a parliamentary committee looking into the nuclear liability Bill today recommended the inclusion of a clause in the proposed legislation to make suppliers accountable for mishaps involving an atomic plant.

The report of the Standing Committee on Science and Technology, tabled in both Houses of Parliament, also recommended raising the cap of compensation to be given by the operator from the original amount of Rs 500 crore to 1,500 crore, “specially keeping in view the present level of inflation and the purchase value of the Indian currency.”

The other amendments proposed in the Civil Liability for Nuclear Damage Bill, 2010, include extension of the period of claim in the event of nuclear accident from 10 years to 20 years, creation of a Nuclear Liability Fund and making a specific mention that the operator of an atomic plant will only be the government.

The report, which was tabled amid uproar created by Left parties in the Rajya Sabha, has notes of dissent from CPI(M) and Forward Bloc.

To hold the supplier accountable, the committee said Clause 17(B) needed to be rephrased as “the nuclear incident has resulted as a consequence of latent or patent defect, supply of sub-standard material, defective equipment or services or from the gross negligence on the part of the supplier of the material, equipment or services”.

In the original Bill, Clause 17(B) said: “The nuclear incident has resulted from the wilful act or gross negligence on the part of the supplier of the material, equipment or services, or of his employee.”

The committee observed that the words “wilful act or gross negligence” mentioned in the original Bill were “vague” and “hence there should be clear-cut liability on the supplier of nuclear equipments/material in case they are found to be defective.

It noted that Clause 17(B) gave “escape route to the suppliers of the nuclear materials, equipment, services of his employees as their wilful act or gross negligence would be difficult to establish in a civil nuclear compensation case”.

This clause was a major cause of dispute between the government and the Opposition parties, which alleged it would allow foreign suppliers to go scot-free, particularly considering that India would be receiving material and equipment from foreign companies.