India’s Civil Liability for Nuclear Damage Act has emerged as an appropriate template that could rekindle the nuclear energy sector while also safeguarding the public interest.
During PM Modi’s visit to US, one of the topics that is likely to be high on the agenda will be the still incomplete US-India nuclear cooperation by way of sales of nuclear reactors to India because of the Indian Civil Liability for Nuclear Damage Act, 2010.
The Right of Recourse embedded in the Indian nuclear liability law has ensured that more than four years after the NSG granted exemption to enable nuclear commerce with India, India has not been able to finalise a single contract with any of the countries with which it has signed nuclear cooperation agreements for any nuclear facility.
If India ratifies the CSC, both the right of the operator for recourse against the supplier and any third party action against the supplier would be nullified, thus providing American companies a singular advantage.
This paper argues that the CSC does not confer any benefit to India and that it may in fact prove to be detrimental to Indian interests and why it should, therefore, not be signed.