With the Bhopal gas tragedy in mind, the anti-nuclear coalition in India has written to prime minister (PM) Manmohan Singh not to yield to US pressure and make sure in case of a nuclear accident, companies responsible have to pay full compensation to victims.
The letter was written ahead of US secretary of state Hillary Clinton’s official talks with the PM and other Indian leaders on Monday. A copy of the letter was also forwarded to Clinton to remind her of corporate responsibility of US firms wanting to sell nuclear reactors to and building power plants in India.
New Delhi is expected to say ‘thank you’ to Washington for bringing India out of its nuclear isolation by giving US firms a share of the estimated $50 billion nuclear pie. India is likely to announce two sites in Gujarat and Andhra Pradesh for nuclear power stations to be palmed off to US companies.
But before US firms get to work, India needs to bring in fresh legislation to amend laws which do not allow private companies in the nuclear field. Washington has been pushing for a limited liability law to be passed in parliament which protects US companies from major financial damage in case of a nuclear accident.
Anti-nuclear activists such as Praful Bidwai want New Delhi to raise the ceiling of compensation from a pathetic $450 million to a reasonable figure. Bidwai wants a clear nuclear liability regime that will lay out who will pay up in the event of a disaster.
“The liability legislation should not be in the interests of corporates but should look to protect the victims of a nuclear accident,” the petitioners said. They want the government to take a detailed look at the Austrian model. In Austria, the law extends the liability to operators of nuclear facilities, suppliers of nuclear equipments and companies involved in transportation of nuclear fuel or waste.
Since the restrictions on India’s nuclear trade were lifted by the Nuclear Suppliers Group last year, New Delhi has signed nuclear agreements with Russia and France. In both countries the nuclear industry is controlled by the government and there is no need for such a law.
However, the question remains what happens if a nuclear accident takes place in a power station built by either Russia or France. Who takes the responsibility and pays the compensation? Nobody knows.
American companies are worried Russia and France will get more than their share of the Indian pie, unless there’s a legislation. These firms had lobbies in the US Congress for the nuclear deal passed and want their just reward.
