N-deal: Ficci feels both sides must share liability

The current impasse in the Indo-US civil nuclear deal can be resolved if the two governments agree to share a portion of the liability in the event of an untoward incident, suggests a top leader of the Indian corporate sector.

"There could be a way forward by the two governments agreeing to share, or coming to an agreement that in case of a disaster. Both (India and US) would assume some of the liability," Ficci Secretary General Rajiv Kumar told PTI.

His comments came after Secretary of State Hillary Clinton raised the issue in her meeting with External Affairs Minister SM Krishna in New York.

"The Secretary urged India to ensure that its nuclear liability regime conforms with the Convention on Supplementary Compensation for Nuclear Damage," a State Department official said, after the 40-minute meeting between the two leaders in New York during which the nuclear liability issue figured prominently.

Claiming that the Indo-US civil nuclear deal has reached a stalemate, Kumar said there is a big disappointment among the American companies on this issue.

Kumar said this is mainly because of the "unlimited liability clause" in the liability bill passed by the Indian Parliament.

The Indian government has ruled out making any changes in its liability Bill; under which the US nuclear companies are reluctant to go to India.

"This stalemate has come because of the unlimited liabilities clause in the act that we passed in the Parliament. Given that unlimited liabilities clause, no private sector corporation would dare to get in, especially given the incidents in Bhopal and Fukushima in Japan," he noted.

"I understand the American viewpoint, because no one would willingly take unlimited liability because this could drive you to bankruptcy. So I understand the American disappointment at the whole thing," he said.