Political India: Engaging America

The United States State Department said that it was “in the process of studying the content” of the new rules on the Indian Nuclear Liability Act as notified by the Indian government earlier this week.

Of the two segments in the Act, which were of concern to the U.S., the Government of India’s notification on the regulations did not alter Section 46, which allows Indian citizens to file tort claims for damages. Yet it did open up a loophole for Section 17(b), which grants the Indian nuclear operator a right of recourse against nuclear suppliers if an accident results from gross negligence.

However in response to a question fromThe HinduDepartment Spokesman Mark Toner only suggested that the U.S. government was aware of the notification about the implementing regulations. He added, “Once we have reviewed them thoroughly, then we will have comment.”

The passage of the Act last year brought progress under the civilian nuclear agreement between India and the U.S. to a grinding halt. Even after India made assurances that it would accede to the Convention on Supplementary Compensation, an internationally accepted liability regime, doubts persisted on the U.S. side regarding the exposure of U.S. nuclear companies to liability. Since that time negotiations involving U.S. nuclear suppliers such as GE and Westinghouse have been underway but have produced no breakthroughs.

Labels: India-US ties, Nuclear Liability Act