The much touted Indo-US
Nuclear Deal signed by the Manmohan Singh government in 2005, was stuck because while India gave
the operator the right to make supplier liable in the case of nuclear disaster,
Washington raised the demand for tracking the US nuclear material in the Indian
programme which amounted to bilateral safeguards that were not envisaged in the
India-US agreement. Japan raised the same demand which stalled the possibility
of stitching up an agreement ahead of PM Modi’s visit to Tokyo last year.
It is in this backdrop that
PM Modi and President Obama set up a contact group consisting of – representatives
of two American companies GE and Westinghouse, and from the Indian side the officials
from the law ministry, Nuclear Power Corporation of India Ltd (NPCIL), Department of Atomic Energy (DAE), and Foreign Ministry were represented.
The key fallout of the
agreement reached by this group was that - while the Indian side dropped its
insistence that the supplier of a reactor would not be held liable in the case
of a nuclear disaster, the US administration let off its insistence on the issue of
tracking nuclear material and agreeing to obtain data from the IAEA.
The resolution of the
nuclear liability issue had its impact across the board with the US agreeing to speed up the process of securing India membership of the four technology control regimes –
Nuclear Suppliers Group, Missile Technology Control Regime, Wassenaar
arrangement, and the Australia Group.
Undoubtedly, besides the US, India can now look forward to cooperation and bilateral
arrangements on atomic energy with other important nations such as Japan, Australia, and Russia etc. Not to ignore the fact that by
securing the above coveted technology control regimes, India would be able to access the latest technology on
these areas which would be in our long term strategic interests.
Considered in isolation,
this deal is indeed a boon for India, as not only do we get access to the technology for
meeting the demands of clean energy which is environmentally friendly, but it
also ends our technological isolation which dates back to 1974 ever since we
conducted the Pokhran explosion and declared ourselves to be a nuclear state.
And all this despite we not being a signatory to the Non-Proliferation Treaty,
which has been a major stumbling block to
our official entry in the Global Nuclear Club.
But sadly enough, we have
been the tragic victims of the world’s biggest industrial disaster in Bhopal
some three decades ago, and to compound our worries, the tragedies of Chernobyl
and more recently Fukushima which revived the memories of the nuclear holocaust
in Japan during the second world war, have only strengthened the voices of the
anti-nuclear lobby in our country.
While industrial accidents
though best wished away, are indeed grim realities, which cannot be ignored.
Thus, some aspects of this arrangement reached with the US recently, deserve attention:
- The major responsibility and liability in the
case of nuclear disaster rests with the operator which is NPCIL, a PSU
that is owned by the Government of India or indirectly by we the taxpayers
of India. Not surprisingly, the annual premium payable by
NPCIL for all its 21 reactors has been pegged at Rest
90 crores or more than Rs 4 crores per reactor. In contrast the suppliers
such as GE and Westinghouse have to shell out Rs 1 to Rs 3 crores per
reactor. Thus major liability has been shifted to NPCIL
- The Rs 1500 crores worth insurance pool has been
created in which the insurance PSUs contribute Rs 750 crores and
Government of India the rest. Thus, indirectly again, we taxpayers are
financing this entire insurance pool,
- The liability provisions will kick in only if the
damage spreads beyond 1.6 km of the reactor. Thus, who shall be liable in
case the damage is well contained within 1.6 km? Of course no one else
other than NPCIL,
- It was agreed by the contact group that a
distinction would be drawn between a supplier and a fabricator. When an
operator places an order specifying the design, material to be used, and
all relevant technical specifications, the firm executing the order will
not be considered a supplier but a fabricator. By definition, therefore,
fabricators will not be liable under the law. Experts say most NPCIL
contracts would fall under this category. Given zero liability for such
fabricators, what would be the compelling reasons for them to ensure zero
defect reactors built with the state of art technology? Our government
should mandate the elimination of fabricators and instead insist upon
direct business deals with the suppliers. Furthermore, before placing
orders for reactors, a joint team of NPCIL and DAE officials should insist
upon foolproof safeguards in those reactors taking note of the Chernobyl and Fukushima disasters besides enlightening themselves of all
the possible loopholes which can be hazardous/dangerous.
- From a commercial perspective, it would be well
within the business interests of suppliers like GE and Westinghouse to
handhold NPCIL where the operations of its reactors are concerned.
Particularly, they could place their experts at the NPCIL sites where
their reactors are deployed.
- And above all, a detailed and meticulous
preventive maintenance and monitoring plan needs to be worked out jointly
by the suppliers of the reactors as
well as NPCIL and DAE in consultation with the IAEA to prevent even a
minor incident which can raise eyebrows out here, as well as in the rest
of the world, with regard to the desirability of the nuclear energy.
As
a footnote, it cannot be overlooked that despite the convincing arguments put
up by the opponents of nuclear energy, we just can’t wish away nuclear energy
as a major source of clean energy, besides the desirability of us being an official
member of latest technology regime, something which has been denied to us for four decades.