NPC to hire int'l law firms to explain nuke bill clauses to US

The Nuclear Power Corporation will engage international law firms to explain certain clauses of the recently passed Civil Liability for Nuclear Damage Bill, for the US, ahead of President Barack Obama's visit to India, a senior NPCIL official said today.

India has signed an agreement with the United States to set up reactors in Gujarat and Andhra Pradesh, but both the countries have not yet reached a stage of serious technical design discussions. That is because the US government has apprehensions on some aspects of the Bill relating to unlimited liability, Jagdeep Ghai, Director (Finance) NPCIL, told reporters here.

"The US has perhaps not interpreted the law properly. Russia and France (who have signed the bilateral civil nuclear agreement) have not reacted in the same manner. Therefore, these law firms will be able to explain (clauses) to the US in their parlance," Ghai said.

"We are hopeful that their doubts and fears will be put to rest and things will fall in place, and serious discussions will commence," he said.

In wake of the passage of the Bill, the Department of Atomic Energy (DAE) is currently engaged in drafting rules to the Bill that will be placed in the Parliament session, set to begin on November 9. President Obama is slated to visit India early next month.

As for the liability in case of a nuclear accident, NPCIL has decided to take an insurance policy for turbine generators, which is the conventional portion of the plant. In case of civilian damages, the Corporation has decided to take the financial security route, Ghai said.

"With Rs 12,000 crore as surplus, a fund will be set up where the Corporation will apportion Rs 1,500 crore that they will be liable to pay in case of an accident. Insurance companies will want to check the plant, something we cannot allow," he said.

With regard to the proposed Jaitapur Nuclear Power Plant in Ratnagiri district, Ghai said NPCIL is in an advanced stage of negotiations.

"But a commercial contract will not be signed with the company unless our regulatory authorities approve of the plant design," he said.

Meanwhile, after two years, the Corporation has exceeded its targets, making a profit of more than Rs 1,000 crores. While electricity generation grew by 23 per cent, the sale of power rose to 36 per cent.

Also, reactors are operating in full capacity, which was not the case six months back.

"This is because of the availability of imported fuel from France, Russia and Kazakhistan as well domestic production. We are hoping the next six months will be better," Ghai added.