Civil liability for suppliers will hamper n-industry: FICCI

NEW DELHI - One of India’s top business chambers Tuesday asked the government to reconsider a specific clause in the civil nuclear liability bill, saying it will affect the participation of both domestic and foreign suppliers in the country’s nuclear programme.

In an open letter to Prime Minister Manmohan Singh, Federation of Indian Chambers of Commerce and Industry President Rajan Bharti Mittal said the current formulation of clause 17(b) of the bill approved by the cabinet is “included to ensure that the supplier is liable for any intended or malafide action causing nuclear damage.”

But, it said, that formulation by the Cabinet - and even that suggested by the recommendation by the standing committee - will harm the growth of India’s nuclear power programme.

“The inclusion of this Clause as conceived by the Parliamentary Standing Committee or the Cabinet is going to adversely impact the participation of Indian industry not only in future programmes such as India’s Three Stage Programme including Fast Breeder Reactors and achieving 63,000 MW by 2032, but also prevent the Indian industry from supporting or servicing the present 17 NPPs (Nuclear power plants) as well as other nuclear installations operating within the country,” he wrote.

He said the special clause 17(b) in the bill that calls for claims throughout the operating life of the plant (which is 60 years-plus a 20-year claim period) is unjustified and that suppliers will not be able to take civil liability on their books.

“Any Civil Nuclear Liability claim on suppliers and service providers beyond their terms of supply, i.e. for 60 years plant life plus claim Liability period of 20 years will make impossible their participation in future,” said the letter.

Further, making each supplier responsible for civil liability will lead to “huge rise in costs of supplies and rise in the cost of nuclear power, eventually hurting the nation’s long-term plans to secure energy supplies at affordable prices”.

Mittal said growth of the Indian nuclear manufacturing industry will be stalled, as foreign suppliers will pass on their liability to Indian suppliers for Light Water Reactor programme. “This will be a major setback to government’s plans to indigenise maximum supplies for the foreign technology plants,” he said.