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"Russia and India are nearing resolution
of disagreements on the issue of application of
the Indian law related to civil liability for
nuclear damages to the project of construction
of the second stage Kudankulam NPP," according
to a statement Feb 28 by Rosatom, Russia's state
atomic agency.
It said that following discussions this week
between officials of Rosatom, and the Nuclear
Power Corporation of India Ltd. (NPCIL) in Mumbai,
both "parties approved the draft project
of the technical and economic agreement on construction
of the power units No 3 and No 4 of the Kudankulam
NPP".
India's Civil Liability for Nuclear Damages Act,
2010, which holds the operator wholly liable in
the event of an accident, gives it a right of
recourse against suppliers if the accident is
caused by defective equipment.
The Russian position draws on the inter-government
agreement of 2008, which makes the operator alone
liable for possible damages at Kudankulam.
Reports earlier had spoken of India proposing
an insurance cover for the Russian components
that would allow suppliers to know exactly the
amount of damages they would be liable for in
the event of a nuclear disaster.
Units 1 and 2 of the Kudankulam plant in southern
India are due to be commercially operational this
year, six years behind schedule. When New Delhi
and Moscow agreed on the Kudankulam project, and
papers for units 1 and 2 were signed, India had
not enacted the 2010 liability law. As the plant’s
operator, the Nuclear Power Corporation of India
Ltd., had to be responsible for any mishap.
Russia, which agreed in 2012 to extend a credit
of USD 3.4 billion, or nearly half the estimated
cost for units 3 and 4, has asked to be absolved
of any responsibility as a supplier in accordance
with the pre-2010 position.
Russian Deputy Prime Minister Dmitry Rogozin
met Indian Foreign Minister Salman Khurshid here
end-Feb and some agreement seems to have been
reached. Rosatom Director General Sergei Kirienko
also visited the Indian capital as part of his
delegation and met with officers from the Department
of Atomic Energy and NPCIL.
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