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India’s Attorney General not happy about waiving nuclear liability law for Russian nuclear reactors

‘Why nuclear liability waiver for Russian company’ Dhananjay Mahapatra, TNN | Nov 1, 2012 NEW DELHI: Attorney general G E Vahanvati has reservations over the ministry of external affairs’ backing for grant of a nuclear liability law waiver to the Russian
manufacturer for Units 3 and 4 of Kudankulam nuclear power plant on the ground that while this could be legal under a 2008 inter-governmental agreement, it might not be prudent.

The Centre, already facing public protests and litigation in Supreme
Court on issues ranging from liability waiver to safety of KNPP Units
1 and 2, had sought the AG’s opinion on legality of a proposal before
the Cabinet Committee on Security, which read, “Authorize Nuclear
Power Corporation of India Ltd not to exercise operators’ right to
recourse under Section 17 of the Civil Liability for Nuclear Damages
Act, 2010.”

Keeping in mind that the Civil Liability for Nuclear Damages Act, 2010
came into force on November 11, 2011, the AG said, “The views of the
MEA cannot be said to be legally wrong but a question may arise about
the advisability of such a waiver, particularly when NPCIL is a public
sector undertaking and the failure to provide for and have recourse
against supplier would ultimately impact public funds.” …..
Vahanvati argued, “Non-recourse or limited recourse may entail a
burden on the tax payer, particularly when the nuclear programme is
being implemented through a PSU and having regard to the provisions of
Section 7, where the ultimate liability is that of the central
government.”

The top law officer was aware that it was a serious policy issue
ordinarily resting in the domain of the executive but he reminded the
government that identical issues were pending before the apex court.

The government had asked, “Would it be prudent to waive the right to
recourse in regard to Russia only when Section 17 is applicable to all
nuclear installations, keeping in view the provisions of
Inter-Governmental Agreement with Russia? No such provision exists in
the existing IGA with other countries
http://timesofindia.indiatimes.com/india/Why-nuclear-liability-waiver-for-Russian-company/articleshow/17040015.cms

November 1, 2012 - Posted by Christina Macpherson | India, Legal, politics, politics international