Civil Liability for Nuclear Damage Act (CLNDA) 2010
Context: India’s Civil Liability for Nuclear Damage Act (CLNDA), while aimed at ensuring victim compensation in case of nuclear accidents, contains ambiguous provisions on supplier liability that deter foreign nuclear collaboration.
Important Pointers:
Year of Enactment: The Civil Liability for Nuclear Damage Act (CLNDA) was enacted in 2010 to provide a framework for compensation in case of nuclear damage.
International Basis: Based on the Vienna Convention on Civil Liability for Nuclear Damage, Paris Convention on Third Party Liability in the Field of Nuclear Energy, Brussels Supplementary Convention, and the Convention on Supplementary Compensation for Nuclear Damage (CSC), 1997.
India & CSC: India ratified the Convention on Supplementary Compensation for Nuclear Damage (CSC) in 2016.
Liability Principle: Enforces strict and no-fault liability on the operator of the nuclear installation (i.e., liability without requiring proof of fault).
Operator's Liability Cap: The operator, typically Nuclear Power Corporation of India Limited (NPCIL), is liable for up to ₹1,500 crore, to be secured through insurance or financial security.
Government’s Role: The Government of India steps in if damages exceed ₹1,500 crore, with a maximum liability capped at 300 million Special Drawing Rights (SDRs) (~₹2,100–₹2,300 crore).
Incident Reporting: The Atomic Energy Regulatory Board (AERB) must report any nuclear incident within 15 days.
Claims Commission: A Nuclear Damage Claims Commission (NDCC) is to be established to ensure equitable compensation and conflict resolution.
Right of Recourse – Section 17: The operator has the right of recourse against the supplier if:
(a) It is provided in the contract,
(b) Damage is due to patent/latent defect or substandard service by supplier or employee, or
(c) There was intent to cause damage.
Supplier Liability – Section 17(b): India uniquely allows supplier liability, contrary to CSC norms, in case of defective equipment or services.
Ambiguity in Section 46: This section allows for civil or criminal proceedings outside the CLNDA, potentially exposing suppliers to unlimited liability under other laws (like tort law).
Foreign Hesitation: Suppliers from countries like the United States of America (USA) and France remain reluctant to engage due to concerns about unquantified legal risks.
Russia’s Exception: The Russian Federation continues work at Kudankulam Nuclear Power Plant (KKNPP) under agreements predating CLNDA.
Government’s Stand: The Government of India maintains that CLNDA is in line with the CSC; however, experts point out that Section 17(b) and Section 46 go beyond CSC provisions.