Panel to review nuclear liability caps every 5 years, Pg21

Key Highlights:

• An expert group will review nuclear liability caps under the SHANTI Act every five years.
• The draft rules, released on August 14, establish this review mechanism for operator's civil liability for nuclear damage.
• The SHANTI Act introduced graded liability caps based on reactor size, replacing the Civil Liability for Nuclear Damage Act, 2010 (CLNDA) flat cap of Rs 1,500 crore.
• The new framework sets maximum liability from Rs 300 crore to Rs 3,000 crore depending on the nuclear installation's capacity.

Detailed Insights:

• Rule 78 of the draft SHANTI Act rules mandates the Central government to form an expert group for periodic review.
• The expert group will comprise specialists in nuclear science, actuarial science, insurance, law, and public interest representatives.
• The CLNDA previously allowed the Centre to review liability, but the SHANTI Act rules specify a defined time period for expert review.
• The SHANTI Act opens India's civil nuclear sector to private players, raising concerns about accountability and liability.
• A key change is the dilution of the operator's right of recourse against nuclear equipment suppliers.
• Section 17(b) of the CLNDA, which allowed recourse for patent/latent defects or sub-standard services, has been omitted in the new law.
• The Supreme Court is hearing a petition challenging the SHANTI Act for allegedly capping liability too low and exempting suppliers.

Key Concepts Involved:

• SHANTI Act: A new law opening India's civil nuclear sector to private players and revising nuclear liability provisions.
• Civil Liability for Nuclear Damage Act, 2010 (CLNDA): The previous Indian law governing liability for nuclear damage, now repealed by the SHANTI Act.
• Nuclear Liability Caps: The maximum financial amount an operator is legally responsible for in case of a nuclear incident.
• Right of Recourse: The legal right of a nuclear operator to seek compensation from a supplier for damages caused by faulty equipment or services.