France accepts N-liability law, but India may dilute it for US firms

Amidst talk of the UPA government diluting the nuclear liability laws ahead of the planned visit of Prime Minister Manmohan Singh to the US, France on Friday assured that it would abide by India's laws on the liability of nuclear suppliers.

While the US, France and Russia have been against the clauses in the nuclear liability laws that tends to raise cost for suppliers, US companies have been more adamant in demanding that India change its liability laws.

''As far as the liability law is concerned, during his visit, our President Francois Hollande had stated, we would of course, work in the framework of Indian law. Because, we have to work in India, we have to work within the framework of Indian law,'' Francois Richier, France's ambassador to India said in Mumbai.

''This is a natural thing. Of course, how it is applied is a matter of discussion. By definition, we will abide by India'', reports quoted Richier as saying.

Richier was in Mumbai to take part in the conference on `Solar Energy: Potential, Means, Technology,' organised by the Embassy of France.

On the global prospects of nuclear power, he said, ''After Fukushima, there had been discussion on the safety element. We have conducted several studies in this respect. We have shared the safety study with the Indian authorities, because we believe that we have to be fully transparent''.

''We build in France, exactly the same reactor that India is planning to build in Maharashtra. So, we share the same safety objective between France and India and I think, it is very important to highlight'', he said.

A controversy has now broken out over India diluting the nuclear liability laws for suppliers ahead of Prime Minister Manmohan Singh visit to United States, suggesting that the final agreement may not be in tune with the stated intentions of the Manmohan Singh government (See: Government keen to dilute nuclear liability bill: report).

The UPA government is reported to be making a last-minute push to close a nuclear deal in time for a meeting between US President Barack Obama and Prime Minister Manmohan Singh late this month, as part of their atomic energy cooperation (See: India clearing decks for Westinghouse nuclear deal).

As the architect of the India-US nuclear cooperation agreement, Manmohan Singh is expected to offer concessions to US nuclear suppliers, in a bid to ensure continued support from Washington.

Senior officials in the external affairs ministry said, under the proposed deal, India would contract Toshiba's US nuclear unit Westinghouse for preliminary works, including information sharing.

Westinghouse is reported to be looking to build nuclear plants in Gujarat. "I think we're close," National Security Adviser Shivshankar Menon said on Friday. "I think they're hoping to do a pre-early works, which involves some transfer of proprietary information."

The Singh-Obama meeting is slated for 27 September.