MPs thwart govt attempt to dilute N-liability bill

11 Jun 2010

New Delhi: Even as the nation is reeling under the shameful revelations about the extent to which the New Delhi colluded with the American government to let a multinational firm off the hook in the case of the Bhopal gas disaster, now comes the shocking revelation that it is still attempting to dilute the liability factor for global commercial firms who wish to act as suppliers for the country's nuclear sector by deleting relevant sections of the nuclear liability bill.

Reports emanating from the nation's capital suggest that the government made a shocking move to delete a sub-clause in the nuclear liability bill dealing with culpability of foreign suppliers in the event of a nuclear accident but had to beat a retreat when members of the standing committee examining the bill launched a fierce attack at the omission.

Members of the standing committee on science and technology dealing with the nuclear liability bill were taken aback when they found that a critical sub-section of the bill that deals with the right of the operator in this case the (Government of India) to hold suppliers of equipment liable for damages for acts of negligence, missing in a list of official amendments sent to them for approval.

So, sub-section 17(b) of the liability bill states the operator can seek a ''right to recourse'' if "the nuclear accident has resulted from the wilful act or gross negligence on part of the supplier of the material, equipment or services, or of his employee." This critical sub-section was missing in the amended section 17 circulated, along with other changes, at the 7-8 June meeting.

Section 17 of the liability bill dwells on an operator's "right to recourse". This is a legal principle that deals with "fiduciary liability" in insurance policies and can also mean the right to recover a bad debt.

In case of a nuclear accident, the ''right to recourse'' would permit operators to seek damages from a supplier.