Welcome Dcian’s

Nuclear Liability Bill

 Group B-8
• Group Members
o Dilip.N
o Nithin Sunny
o Raji Manuel
o Riju Paul
o Rohitha Raju
o Tinu Thomas

• SOP Owner: Miss Archana Thulaseedharan

 Introduction to NLB
Nuclear Liability bill deals with
liability of a foreign company doing nuclear
commerce in India. This bill is passed in
connection with the NUCLEAR AGREEMENT
with the US, it is the last step in connection to
this agreement, to facilitate nuclear
commerce and attract U.S. private companies
involved in nuclear commerce.
 Agreements in connection with NLB

• Non-proliferation Treaty

• 123 Agreement

• Indo-US Nuclear agreement

  Nuclear Non-Proliferation
Treaty (NPT or NNPT)
• The Treaty on the Non-Proliferation of
Nuclear Weapons, also Nuclear Non-
Proliferation Treaty (NPT or NNPT)

• A treaty to limit the spread (proliferation)

of nuclear weapons.
• The treaty came into force on 5 March 1970.
• The treaty was proposed by Ireland and
Finland, and they were the first to sign.
• The NPT consists of a preamble and eleven
articles.
• NPT is sometimes interpreted as a three-pillar
system, with an implicit balance among them:
– non-proliferation,
– disarmament, and
– the right to peacefully use nuclear technology.
• India, Pakistan, Israel, North Korea are some
countries stayed away from NPT.
• India is now supplied with nuclear raw materials
by the special consideration of U.S.A.
• If any country join in NPT, that country is
supposed to use nuclear energy only for civilian
purpose and not for military purpose.
 123 Agreement
• An agreement between India and USA which
refers to Sec. 123 of the U.S. Atomic Energy
Act.

• The Hyde Act was passed by U.S.A to make an

exception for India, to enable transfer of
technology for civil nuclear energy.
Nuclear Agreement
 Indo- US Nuclear Agreement
• The Indo-U.S. Civilian Nuclear Agreement was
enacted successfully in 8th October, 2008.
• To facilitate civilian nuclear partnership along
with many other mutual benefits
• India will separate its civilian and military
nuclear facilities and put civilian facilities
under the International Atomic Energy Agency
(IAEA) inspection.
 Nuclear/Civil liability bill

• Nuclear Liability Bill defines the financial and

legal liabilities upon the involved groups, in
case a nuclear accident occurs.
• Cabinet of ministers approved this bill on
November 19,2009.
• Bill was introduced in parliament on march
15,2010.
• Bill was passed in the Lok-Sabha on august
25,2010.(252/26-passing vote)

• The suppliers and the operator are the foreign

private companies, they are controlled by Nuclear
Power Corporation of India Limited (NPCIL).

• Liability amount of the operator in case of a

nuclear accident is limited to Rs:1500cr.
 Why Nuclear Liability Bill
• To reap the benefits of Indo-U.S. Civilian
Nuclear Deal of nuclear commerce.

• Foreign private involvement in manufacturing

and supply of nuclear reactors.

• To get nuclear energy from Nuclear Supplier’s

Group (NSG)
• Private investment in the Indian nuclear
power program.

• India has an ambitious and indigenous nuclear

power program to achieve the goal of 20,000
MWe electricity produced through nuclear
energy by 2020, further increased to 60,000
MWe by 2032.
 Provisions Related
1) Application of bill

2) Nuclear damage

3) Operator

4) Cases where the operator is liable

5) Recourse against party actually causing
damage

6) Persons who can claim compensation

7) Persons who can assess compensation

 1) Application Of Bill
• Applies to whole of India
• Applies to territorial waters of India
• Applies to ships and aircrafts registered in
India
• Artificial islands and installations under India’s
jurisdiction.
 2) Nuclear damage
• loss of life or personal injury, and
• damage to property caused by a nuclear
incident.
• It also includes damage caused to the
environment. 
 3) Operator

• An operator is any person so designated by

the central government.  He is responsible for
damage caused by a nuclear incident.
 4) Cases where the operator is liable

• Damages during installation

• Damage is caused by nuclear material send to

installation, and after the operator has
assumed charge of the nuclear material .

• Damage is caused by nuclear material coming

from, or originating in a nuclear installation,
 6) Persons who can claim compensation

Any person suffering nuclear damage

Application can be made by:

Owner of damaged property
Person sustaining injury
Legal representative of a deceased person
. An authorized agent
 7) Persons who can assess compensation

The bill allows the central government to

create two authorities by notification

• Claims commissioner
• Nuclear damage claims commission
 Sections in NLB
• Section 6(2)
• Section 17(b)
• Section 1(3A)
• Section 18(b)
• Section 16(1)
• Section 35
 Section 6(2)

• Nuclear operators to be strictly liable for

damages resulting from an accident but their
liability is capped at Rs.1500 crore,unless a
higher amount is notified by the government.
 Section 1(3A)
• Only government or “government company”
can benefit from the liability cap.
• Central government has “not less than 51% “
ownership in government company.
• This paves way for liability burden of any
private sector partner to be subsidized by the
tax payer
 Section 17(b)

• If accident “ has resulted as a consequence of

an act of supplier or his employee”, the
operator shall have a right of recourse.
 Section 18(b)

• Increases the time period for filing claims in

case of personal injury from 10 to 20 years.
 Section 16(1)

• Claims for damages must be disposed of

within three months of application.
 Section 35

• Victims can approach the High court and the

Supreme court for review of compensation
amounts.
 Issues Related To NLB
• The liability cap on the operator may be
inadequate to compensate victims in the
event of a major nuclear disaster.

• The cap on the operator’s liability is not

required if all plants are owned by the
government. It is not clear if the government
intends to allow private operators to operate
nuclear power plants.
• The extent of environmental damage and
consequent economic loss will be notified by
the government.  This might create a conflict
of interest in cases where the government is
also the party liable to pay compensation.

• The time-limit of ten years for claiming

compensation may be inadequate for those
suffering from nuclear damage
• Though the Bill allows operators and suppliers
to be liable under other laws, it is not clear
which other laws will be applicable. 

• The right of recourse against the supplier

provided in the Bill is not compliant with
international agreements.
 Benefits
• Win-win situation for both countries.
• Generating employment and abundant clean
energy.
• Providing legal framework for payment of
compensation in case of a nuclear accident.
• Availability of raw materials from U.S.
• Pave way for private investment.
• It will reduce the probability of nuclear
catastrophe to some extent.
• Is considered as environment friendly and
sustainable source of energy.
 Negative Impact
• The amount of financial assistance and legal
relief is considered insufficient and
unsatisfactory.

• Government liability is unlimited

• Basic problem with nuclear installation is

radiation
 CONCLUSION

Plan for negative consequences

prior to reaping benefits from
positive consequences
 Reference
• The Hindu (15-03-2010 to 27-08-2010)
• http://www.prsindia.org./index.php?
name=Sections&action=bill_details&id=6&bill_id=1042&categ
ory=42&parent_category=1
• http://www.npcil.nic.in/main/AllProjectOperationDisplay.aspx
• http://www.world-nuclear.org/info/reactors.html.
• http://www.nrc.gov/reading-rm/doc-collections/fact-
sheets/chernobyl-bg.html
Thank you
Queries