The civil nuclear liability bill: Why it doesn't work?

By: Dinesh Narayanan

The Civil Nuclear Liability Bill doesn't match up to similar bills in other countries

The Supreme Court's judgement on the Bhopal gas tragedy has triggered a demand for a stronger compensation regime in industrial accident cases. One of the demands has been to amend the proposed Civil Nuclear Liability Bill that the government tabled in the Lok Sabha on May 7. Many consider the Bill badly drafted and biased in favour of equipment suppliers, who are mostly based in rich nations.

Inadequate compensation

At a maximum of Rs. 500 crore for the operator and about Rs. 2,100 crore for the government, the amount will be grossly inadequate in a severe case like a nuclear accident. Data compiled by PRS Legislative Research, an independent research organisation that tracks Indian Parliament, shows that among the top nuclear power producing countries, the US caps the operator liability at a little over USD 11 billion (about Rs. 51,500 crore) while the government's liability is unlimited. Japan, Russia and Germany have unlimited liability for both the operator and the government. In comparison, France, which is the second largest producer of nuclear power in the world, caps the total liability at a mere USD 1.1 billion (about Rs. 5,200 crore).

Against the constitution

When Greenpeace sought an opinion from eminent lawyer Soli Sorabjee on where the Indian law stands on compensation in case of industrial accidents, he said that compensation for accident victims was a fundamental right under Article 21. Citing previous Supreme Court judgements, Sorabjee says that there is no justification for capping nuclear liability as is sought to be done.