US Presses India on Nuclear Liability Alignment with Global Norms
US Presses India on Nuclear Liability Alignment with Global Norms
The United States, under the Trump administration, intensified its long-standing call for India to align its civil nuclear liability law with international standards. This diplomatic push aimed to unlock billions in potential nuclear energy trade and deepen strategic cooperation between the two nations, a key objective for American industry and foreign policy.
Background: A Decade of Disagreement
The issue of India's nuclear liability law became a significant hurdle following the landmark India-US Civil Nuclear Agreement (the 123 Agreement) signed in 2008. This agreement ended India's nuclear isolation, allowing it access to civilian nuclear technology and fuel from the international market, including the United States. However, the commercial realization of this deal soon faced a critical legal challenge.
India’s Civil Liability for Nuclear Damage Act (CLNDA), 2010
In 2010, India enacted the Civil Liability for Nuclear Damage Act (CLNDA) to establish a framework for compensating victims of a nuclear accident. This law, however, immediately drew criticism from international nuclear suppliers, particularly those in the US, due to specific provisions that deviated from global norms.
The primary points of contention were Section 17(b) and Section 46. Section 17(b) grants the operator of a nuclear plant the “right of recourse” against a supplier if an incident results from a supplier’s intent, or a latent or patent defect. This provision allows the operator, and potentially victims, to sue suppliers for damages, a significant departure from international practice.
Section 46 further complicated matters by stating that the Act’s provisions are “in addition to, and not in derogation of, any other law for the time being in force.” This clause raised fears among suppliers that victims could bypass the CLNDA’s liability caps and sue under broader tort laws, potentially exposing them to unlimited liability.
International Nuclear Liability Regimes
Globally, established nuclear liability principles, codified in conventions like the Paris and Vienna Conventions and the Convention on Supplementary Compensation for Nuclear Damage (CSC), place “strict and exclusive liability” on the nuclear plant operator. This framework aims to provide legal certainty to technology providers, encouraging investment and growth in the nuclear industry. India, influenced by historical events like
