Stuck N-deal to figure in Modi-Obama talks

The deal has been stuck since signing as the US had reservations about India's Civil Liability for Nuclear Damage Act of 2010

The second bilateral meeting of US President Barack Obama and Prime Minister Narendra Modi, here on January 25, will see them discussing priority areas in the ties from trade to terrorism. It is likely the stalled civil nuclear deal, signed in 2008, might see some movement. The contact group on advancing the pact's implementation, established during Modi's visit to the US, had its first meeting this month. It is to meet early next month, too, to take stock of the progress.

"Some mechanism will be worked out this time, within our parameters," a senior official, involved in the talks, told Business Standard. The official said the deal was stuck on matters related to "monetising the pact".

Also known as the '123-agreement', it has been stuck since signing because the US had reservations about India's Civil Liability for Nuclear Damage (CLND) Act of 2010.

Large conglomerates such as GE-Hitachi and Toshiba's Westinghouse Electric Company, eyeing a deal with state-run Nuclear Power Corporation of India, are also trying to smoothen out the differences, said an official.

The CNND law says if an accident occurs at a nuclear power plant, the equipment suppliers will be liable to cover the damages for a period of five years. As a result, the companies have shied away.

An official said the department of atomic energy was working on an insurance plan to give the companies some leeway. However, the latter are uneasy as this will be a major change in their strategy.

It appears the ministry of external affairs has also sought a list of pending items from the ministry of commerce and industry. The main ones among these are issues related to work done on intellectual property rights and patents, ways to boost trade and progress on a trade and investment treaty.

All these issues will also feature during a meeting between Modi and Secretary of State John Kerry, on January 12. Kerry is coming for the 'Vibrant Gujarat' meet.