Take home from the Indo-US Nuke Deal 2015

It is projected, that by 2035 Indias energy demand would grow by 132% and India will
surpass china to become worlds largest energy consumer according to a latest BP energy
outlook report. Nuclear energy with its low carbon footprint and consolidated land
requirement would remain a good option for the Indias energy mix. Especially when
countrys population is growing and world is inching towards clean energy. It is because of
this that the govt. raised the targets to 63000 MW of electricity generation which is 14
times of the present.
In order to prevent the country from the untoward nuclear accident civil liability nuclear
damage act 2010 was brought by Indian Government to negotiate with foreign and Indian
supplier and operators.
Events that heightened the debate over the liability
The Fukushima nuclear meltdown of Japan in 2011 which took so many lives, with still
unknown real figures of deaths. Second the deep sea water horizon oil spill off the coast of
Mexico found that not only was the operator BP was liable to such damage but the supplier
Halliburton also paid $250 Mn as a settlement amount. Looking to these incidents GOI
raised the cap higher than $420 Mn fixed earlier, making the CLND more stringent.
The Breakthrough understanding in the recent visit of 2015
Section 17 of the CLND act, provides for the right to recourse in case of any accident to
claim compensation form the supplier. MEA explained that the provision could only be
invoked if both the supplier and operator had agreed to, at the time of starting the business.
The other clause was the section 46, which include any person affected by the nuclear
accident for the compensation from the supplier. Here the MEA(Ministry of External
Affairs) explained that it would be limited to operator only. Additionally there would be a
1500 crore insurance pool, half of which funded by the public sector insurance company
and remaining by GOI. Details of which is yet to be seen with the final agreement.
Under the Nuclear safeguard law of US, Nuclear material is to be monitored to be used only
for the civil purpose not for any military purpose. Though MEA said, there would not be any
compliance with the US law and that no additional monitoring other than by International
atomic energy agency.
Criticism
The floating of insurance pool would put the entire financial liability on the Indian tax
payer. As cost of land allotted, building, operationalizing, the reactor and cost to insurance
pool, immediate damages to be paid by the central govt. i.e. the Indian tax payer. Also the
kind of agreement between the supplier and the operator would determine the discourse
post accident.
Certainly, the so called breakthrough brings in more confusion than real answers, as those
who were ardently opposing the clauses while in opposition seems to now hammering the
agreement while in power without any significant achievement.