The Indian Civil Liability for Nuclear Damage Act, 2010, removes key legal hurdles to accelerating the nuclear power programme. The Act is based on international legal principles related to nuclear law, which in itself is an emerging field. The Act draws heavily on the Vienna Convention, evolved over 45 years.
The Act is passed by Parliament and the rules, essential for implementation, are made by the department of atomic energy (DEA). In case of any ambiguity, the Act overrides the rules. And if the rules are silent on certain clauses of the Act then the judiciary plays a role to determine as to how it needs to be interpreted. It is also important to note that the right to recourse mentioned under the Act 2010 (Chapter 4, clause 17 (a), (b) & (c)) does not quantify the amount and hence it could be concluded that the liability is unlimited.
However, the rules brought out in the government of India notification, issued by the DEA in November 2011, addresses the important aspect of setting the time limit on the ?Supplier? as provided in the Atomic Energy (Radiation Protection) Rules, 2004?for the initial five years of licence. The amount of liability of the operator has already been set in the Act, 2010, Chapter II Clauses 6 (1) and 6(2).
It could be interpreted that in the event of a nuclear incident post the initial five years of operation, the liability of the supplier can be as stated in the Act, 2010, if the operator has a back-to-back agreement with the supplier for performance warranties for an extended periods of time beyond five years. If the operator does not have an extended warranty, then the matter will be decided by the judiciary, in the event of a nuclear incident.
The author is director, Deloitte India Private Limited