NPC hires lobbyists to ally US N-liability fears

Ahead of US president Barack Obama's visit to India next month, the Nuclear Power Corporation (NPC) has engaged law firms to allay the apprehensions of the US about the nuclear liability bill, which seeks to put the onus for any accident on the supplier, according to a report.

Ever since the bill was passed, the US administration has been pressing India to make certain modifications, particularly about certain aspects of unlimited liability. But India is not keen on making any changes.

NPC's director (finance) Jagdeep Ghai said the French and Russians (who have signed the bilateral civil nuclear agreement) have no issues with the bill. ''The Americans should not have any fears either. The US laws are, however, different,'' he said.

Unnamed sources in the NPC told The Times of India that the bill could be an important part of the agenda of talks between president Obama and Prime Minister Manmohan Singh.

The Department of Atomic Energy (DAE) is drafting rules for the bill which must be ready by 9 November, when the winter session of Parliament begins, said Ghai. There are two types of liabilities, he said. One relates to Indian manufacturers. NPC plays a key role in the manufacturing process of atomic components. About foreign reactors, it's a different proposition, he said.

Since NPC has Rs12,000 crore surplus, it will firm up financial security and build a fund. This will permit NPC to show it is not cash-starved. NPC, however, will take insurance cover for the conventional section of nuclear plants such as turbine generators.

About the import of US-made nuclear reactors from GE and Westinghouse, Ghai said technical discussions are yet to begin. ''Maybe this could be discussed during president Obama's visit,'' Ghai said.

After a gap of two years, the Indian nuclear industry was showing an ''upward trend'', he said. Nuclear power generation between April and September 2010 was 23 per cent higher than in the corresponding period last year.