With the controversial verdict on Bhopal gas tragedy exposing inadequacies of the Nuclear Liability Bill, the government is likely to raise the cap on compensation a nuclear operator will have to cough up in case of accident, to Rs 1,200 crore from Rs 500 crore proposed at present.
As per the original Bill, if the liabilities arising from a nuclear accident crosses Rs 500 crore, the central government will have to bear the incremental liability.
Government sources confirmed to FE that the Bhopal verdict and more significantly, the BP oil spill in the Gulf of Mexico have prompted a rethink on the liability cap. Sources added that although the proposal to strengthen the liability clause has not been intimated to the standing committee on science and technology considering the Bill, these changes could be introduced when the Bill is taken up in the Parliament. By hiking the liability cap, the government also aims to make the Bill more acceptable to the Opposition.
Sources added that the period for which damages awarded could be challenged in court would be extended from 10 to 15 years.
The BP spill and the Bhopal verdict already seem to have had their effect when the standing committee met on June 15. During the meeting, an embarrassed atomic energy secretary Srikumar Banerjee had to move a note withdrawing an amendment, Clause 17(b) of the Bill. The clause proposed that the operator would have legal recourse if a nuclear accident results from the ?wilful act or gross negligence on the part of the supplier of the material, equipment or services, or of his employee.?
The government is closely following US President Barack Obama?s statements on tougher regulation to guard against industrial accidents. ?If the US comes up with stricter laws, then we cannot, in all fairness, lag behind,? said a source. ?However much we may say that Bhopal and the nuclear bill are not related, they have been linked in the minds of the people. Compensation and environment degradation are issues common to both,? said a source.