What are the ambiguities in India’s nuclear liability law?, Pg9

Key Highlights:

• India’s Civil Liability for Nuclear Damage Act (CLNDA), 2010 introduces supplier liability, diverging from global norms.
• The law caps operator liability at ₹1,500 crore and government liability up to ₹2,300 crore.
• Section 17(b) and Section 46 are key contentious provisions causing legal ambiguity.
• These clauses potentially expose suppliers to unlimited civil liability.
• Global suppliers, including from France and the U.S., remain wary of investing in Indian nuclear projects.
• Projects like Jaitapur and Kovvada remain stalled due to unresolved liability concerns.
• India is a signatory to the Convention on Supplementary Compensation (CSC) but interpreted its provisions uniquely.

Detailed Insights:

• International nuclear law, including the CSC, channels liability exclusively to the operator, avoiding burdening suppliers.
• India’s CLNDA Section 17(b) extends operator's right of recourse against suppliers if damage results from defective equipment or sub-standard services, even without contract clauses.
• Section 46 allows for additional civil/criminal proceedings under other laws, such as tort law, bypassing the capped liability system.
• These provisions create legal uncertainty and are seen as violating the principle of exclusive operator liability.
• Foreign suppliers fear being exposed to unlimited liability, deterring participation in India’s nuclear power expansion.
• Despite government assurances that the law is aligned with the CSC, plain statutory interpretation allows supplier liability outside contracts.
• Parliamentary debates have been cited to defend the law, but courts are bound by statutory text, not legislative intent.

Scientific/Technical Concepts Involved:

• Right of Recourse: Legal right allowing the nuclear operator to claim damages from suppliers in specified cases.
• Strict and No-Fault Liability: Liability imposed on an operator regardless of negligence or fault.
• Tort Law: A branch of civil law enabling victims to claim compensation for harm caused by others, including corporations.

Mains Mock Question:

Critically examine the ambiguities in India’s Civil Liability for Nuclear Damage Act, 2010. How do these affect India’s nuclear energy expansion and foreign investment prospects?