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Anger in India, as government goes for a “sweetheart deal” with US nuclear companies

Buy-US-nukes‘Sweetheart’ nuclear deal for US companies sparks furore , TNN | Sep 20, 2013, NEW DELHI: The government’s effort to find an honourable way around the constraint of the nuclear liability law without actually violating it ran into rough weather on Thursday with the opposition accusing it of seeking to dilute the law for the sake of US and other foreign suppliers.

The opposition seized upon attorney general Goolam E Vahanvati’s opinion, as reported in TOI, that the country’s nuclear operator NPCIL could waive the right to recourse to suppliers’ liability in a commercial contract for a foreign-supplied flag-indianuclear plant, to allege that the government was seeking to dilute the provision in the nuclear liability law that would hold foreign reactor suppliers liable in cases of mishaps caused by faulty and defective equipment……….
The US has been very critical of India’s liability law, and this is generally believed to be one of the major hurdles to the relationship. The PM, who made the nuclear deal the centrepiece of UPA-1, has been wanting to fix the problems with the law, but the allegations of sellout underlined once again that he has only limited maneuver space.

The CCS is scheduled to meet on Tuesday to decide on the early works agreement with Westinghouse. This agreement, as reported by TOI, opens the way for detailed and confidential discussions between the two sides……..

The nuclear liability law, with its supplier liability clause, cooled the ardour of many countries who wanted to invest in India’s nuclear energy sector……..
In 2012, the liability law ran into trouble with Russia. Russia refused to let the agreements for Kudankulam 3 and 4 be governed by the liability law. That would raise the price of the power produced to the extent that it would be priced out of the market. At the time too, Vahanavati had said, “Section 17(a) provides for recourse if such right is expressly provided for in a contract in writing. If the operator chooses not to incorporate such a provision in the contract, it would be open for him to do so.”

Both Russia and France, who have started negotiations on nuclear plants with India, have indicated this would have to be legally watertight in any commercial contract. http://timesofindia.indiatimes.com/india/Sweetheart-nuclear-deal-for-US-companies-sparks-furore/articleshow/22774774.cms

September 20, 2013 - Posted by | India, politics international, USA

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