NPCIL may waive right to recourse in pact with US firm: BJP

BJP today apprehended that state- run NPCIL would waive the right to recourse in a contract expected to be signed soon with US firm Westinghouse and said such a step would be contrary to provisions of the liability laws and compromise state revenue.
The remarks were made by BJP leader Arun Jaitley while commenting on Attorney General's opinion where an operator of a nuclear plant can waive the right to recourse while signing a contract with nuclear part supplier.
"The Government of India under pressure from the nuclear vendors wanted to eliminate the 'right of recourse'... Any attempt now to permit the Nuclear Power Corporation of India (NPCIL) to abdicate the right given to an operator, a government company, would be compromising with state revenue. It would be a contract contrary to provisions of section 17(b) of the (Nuclear Liability) Act," he said.

The BJP leader said if a public sector firm enters into an agreement with a foreign vendor and abdicates its right to recourse which is for its benefit, "it would not only be violating the provisions of the civil liability for nuclear damages act but also a section of Prevention of Corruption Act wherein a wrongful loss would be caused to the its revenue."
Commenting on the various stages before which Parliament cleared the Act, Jaitley said, "The original Bill as introduced in the Lok Sabha, that was referred to the Standing Committee, contained a provision in section 17 which made it mandatory for the right of recourse to emanate from a wilful act of gross negligence.