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Arun Kumar asked: Isn't the nuclear liability clause applicable to Kudankulam project? If yes, why Russians have no issue with it, and, if no, then why not? Why is it that India alone in the world has vouched for such a clause?

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  • Kapil Patil replies: India’s Civil Liability for Nuclear Damage Act (CLNDA), passed in 2010, holds suppliers of nuclear reactors and components liable in the event of a nuclear accident. Indian law is unique in channeling liability to the suppliers of nuclear reactors and components. Countries such as South Korea have stipulated specific conditions under which suppliers can be held liable. The Indian Parliament, however, rejected the South Korean model and stipulated supplier’s liability conditions in Section 17 (b).

    The Indian Government entered into an agreement with erstwhile USSR to set up nuclear power plants at Kudankulam in the year 1988. A supplementary agreement was signed with Russia in 1998 for setting up unit 1&2 at Kudankulam site. At the time of time of signing the agreement in 1998, India neither had any domestic civil nuclear liability law in place nor was India party to any of the international civil nuclear liability conventions. Also, the Russian Government demanded indemnification of its suppliers as it did in case of its own nuclear agreements with countries like Germany. Hence, the contract signed under the 1998 agreement indemnified the Russian firms for the supply of Kudankulam 1&2. Subsequently, in 2008, India and Russia signed another agreement to set up additional units at the Kudankulam site. The intergovernmental agreement of 2008 granted a liability exemption to Russian suppliers for nuclear damage. The Russian ambassador has reportedly stated that they are neither liable for any claim for damages nor are they covered by liability law passed by the parliament.

    For further analysis on the subject, please refer to following publications:

    A. Vinod Kumar and Kapil Patil, “Resolving India’s Nuclear Liability Impasse”, IDSA Issue Brief, December 06, 2014.
    Kapil Patil and G. Balachandran, “Kudankulam Nuclear Power Plant and Civil Nuclear Liability”, IDSA Issue Brief, November 09, 2012.

    Posted on March 04, 2015

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