This document summarizes the Indian Nuclear Civil Liability for Nuclear Damage Act of 2010 and discusses implications for UK nuclear suppliers. It provides background on India's growing energy needs and nuclear power program. It outlines key aspects of the 2010 Act, including operator liability and the right of recourse for suppliers. There is perceived lack of clarity around supplier liability that has concerned UK companies. The Center for Study of Science, Technology and Policy will analyze the Act's legal issues and identify any changes needed to facilitate international nuclear trade and participation of UK industries in India's nuclear program.
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Market Briefing. India part 3. 27th January
1. The Indian Nuclear Civil Liability for Nuclear
Damage Act, 2010
27th January, 2014
Center for Study of Science, Technology and Policy, Bangalore
2. Background
•
India is a fast growing economy and needs energy in
abundance
•
India promotes all forms of energy to meet its energy demands
and nuclear power is one of them
•
Signing of safeguard agreement with IAEA and decision of
NSG in 2008 made the international co operation in civil
nuclear trade possible
•
Out of 20 nuclear power reactors, 18 are indigenously
constructed and operated by NPCIL
2
3. Background (Contd)
•
India has an ambitious program for the coming decades about
~450GWe by 2050 (A. Kakodkar, 2013)
•
This expansion of the program provides a great opportunity for
participation
•
The Indian nuclear power program is supported by the Indian
industries
•
They are conversant with international codes/specifications
and best practices
3
4. The Indian Civil Liability for Nuclear Damage Act, 2010
•
The act was passed by the parliament in August 2010
•
There are rules associated with the act which was framed in
2011
•
India has signed CSC and intends to ratify in due course of
time
•
Is there a problem with the Indian Civil Liability Law?
• Indian government does not think so but suppliers are not
happy with this act
4
5. The Indian Civil Liability for Nuclear Damage Act, 2010 (Cont)
•
The unhappiness appears to stem out primarily due to clause
17 of the act
•
Perceived lack of clarity on suppliers/sub-suppliers liability in
terms of cost and time
5
6. Clause 17
The operator has the right of recourse where:
a) such right is expressly provided for in a contract in writing;
b) the nuclear incident has resulted as a consequence of an
act of supplier or his employee, which includes supply of
equipment or material with patent or latent defects or substandard services;
c) the nuclear incident has resulted from the act of
commission or omission of an individual done with the intent
to cause nuclear damage.
6
7. Rule 24
•
Right of Recourse:
1. A contract referred to in clause (a) of section 17 of the act
shall include a provision for right of recourse for not less
than the extent of the operator’s liability or the value of the
contract itself, whichever is less
2. The provision of the right of recourse referred to in sub-rule
(1) shall be for the duration of initial license issued under
the Atomic Energy rules, 2004 or the product liability
period, whichever is longer
The product liability period is defined as:
7
8. About CSTEP
Center for Study of Science, Technology and Policy (CSTEP) is a
not-for-profit research organisation. As one of the largest Think
Tank in South-East Asia, its vision is to enrich the nation with
technology-enabled policy options for equitable growth. CSTEP
has grown to become a multi-disciplinary policy research
organisation in the areas of Energy, Infrastructure, Materials,
Climate Adaptation and Security Studies.
8
9. The Project and its objectives
The Study by CSTEP intends to provide a tailored analysis of the
Civil Liability for Nuclear Damage Act, 2010 to the UK companies
The objectives are as follows:
•Critically compare the Civil Liability for Nuclear Damage Act,
2010 with other international conventions
•Analyze the legal issues related to the act
•Identify changes in the act if at all required
•The implication of the act to various UK suppliers and identify the
perceived constraints
9
10. Outputs
•
The study would involve an in-depth analysis of the act
•
Issues requiring government consideration will be highlighted
•
Efforts will be made to generate a dialogue between the
concerned parties to facilitate nuclear trade
•
Participation in this event and discussing concerns of UK
nuclear supply chain companies is a significant step in the
CSTEP study
10
11. Conclusion
We see a great opportunity for UK industries to be partners in the
Indian Nuclear Program. Historically there were many industries
who had participated in the Indian program by supplying high
integrity and quality products with a good record of performance.
We expect this to continue and we hope our study will facilitate
this.
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The operator of the nuclear installation after paying the compensation for nuclear damage in accordance with section 6, shall have a right of recourse where –
Such right is expressly provided for in a contract in writing;
The nuclear incident has resulted as a consequence of an act of suppliers or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services
The nuclear incident has resulted from the act of commission or omission of an individual done with the intent to cause nuclear damage.
