India, U.S. nuclear industries may be closer to resolving liability issues

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India has delivered its instrument of ratification of the Convention on Supplementary Compensation for Nuclear Damage (CSC) to the International Atomic Energy Agency (IAEA) this week.

In 2010, India passed the Civil Liability for Nuclear Damage Act (CLNDA), which gives operators of nuclear plants recourse against suppliers. The Nuclear Energy Institute (NEI) said this law is a key reason why U.S. companies have avoided contracts with India's nuclear industry. The NEI also said a  breakthrough understanding was reached between the U.S. and India that is expected to result in amendments to the CLNDA to facilitate a viable solution for nuclear liability.

“India’s steps toward normalizing its civil nuclear liability regime are critical for both Indian and international suppliers to participate in its nuclear energy market,” NEI Director of Supplier Programs, Ted Jones said.

Through the CSC and other forms of international liability practices, liability in the case of a nuclear accident is placed on the operator of the nuclear plant in question.

The NEI said that for U.S. suppliers to do business with the Indian nuclear industry, measures would need to be in place to protect suppliers from liability-related costs.

Organizations in this Story

International Atomic Energy Agency International Atomic Energy Agency Nuclear Energy Institute

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