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India-Russia future nuclear projects stalled because of Nuclear Liability Law

The two sides discussed setting up two additional units — Kudankulam 3 and 4 — but there was no agreement for these as was expected earlier.  With the exception of Kudankulam 1 and 2, all future projects will come under the purview of the liability law.    “There is no question of opposing the nuclear liability law.” …… a Russian official said.

Liability clause holds up two N-reactors from Russia, The Times of India, Sachin Parashar, TNN, Dec 22, 2010, NEW DELHI: India and Russia on Tuesday failed to finalise an agreement for building two more reactors at Kudankulam because of the latter’s concern about the Indian civil nuclear liability law, which seeks to hold suppliers liable for nuclear mishaps.

According to sources, Russia wants an explanation of how the tricky supplier liability clause would be implemented in the event of a nuclear accident.

Though the Russians tried hard not to sound critical of India’s new nuclear liability law, sources said their concern was the reason why the discussion on the two new agreements didn’t yield a deal.

However, after delegation-level talks, the two sides did sign an agreement to expand nuclear energy cooperation.  A Russian official, speaking on condition of anonymity, told TOI that seeking a clarification did not mean that there was any conflict of interest between the two parties. The two sides discussed setting up two additional units — Kudankulam 3 and 4 — but there was no agreement for these as was expected earlier.

With the exception of Kudankulam 1 and 2, all future projects will come under the purview of the liability law.

“There is no question of opposing the nuclear liability law. We understand that the government may propose a mechanism to address this issue which will not just facilitate construction of more plants at Kudankulam but also help us implement our plans for more reactors at other places,” a Russian official said.

Liability clause holds up two N-reactors from Russia – The Times of India

December 22, 2010 - Posted by Christina Macpherson | India, politics international