Cabinet dilutes n-liability clause ahead of PM’s US visit

As Prime Minister Manmohan Singh prepares to leave for the USA, the cabinet committee on security today reportedly cleared changes in the contentious Nuclear Liability Clause, paving the way for the two sides to announce a deal between Nuclear Power Corp of India Ltd (NPCIL) and America's Westinghouse Electric Co.

The clause dilutes the Nuclear Liability Law under which NPCIL will have the right to recourse in case of a nuclear accident, according to a CNN-IBN report which adds that the clause was cleared on the basis of attorney general G E Vahanvati's interpretation of the deal.

The union government maintains that India is not going back on the deal. "There is no question that we will go back on the Nuclear Liability Bill," said External Affairs Minister Salman Khurshid.

The clause dilutes the Nuclear Liability Law by which NPCIL will have the right to recourse in case of a nuclear accident. The agreement will allow two sides to begin negotiations taking into account all the opposition to the Civil Nuclear Suppliers Liability Clause from the US.

While the government denies any changes, it allows NPCIL to change course in case of an accident. It will also allow negotiations on the 6,600 megawatt nuclear power plant in Gujarat to continue.

The timing is significant as US President Barack Obama and Manmohan Singh meet on Friday and there will an attempt to show that the India and US rapport hasn't hit a plateau.

The two leaders will also discuss implementation of the civil nuclear deal. Ways to expand cooperation in the fields of defence, security and economic issues will also be high on the agenda of the meeting.

Some pacts, including a contract between NPCIL and Westinghouse, are expected to be signed.