[Answered] Critically analyze the key provisions of the Civil Liability for Nuclear Damage Act, 2010 in addressing the concerns related to compensation and liability in the event of a nuclear accident in India.
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Civil Liability for Nuclear Damage Act, 2010 was enacted to fix the accountability to ensure that India has a comprehensive legal framework to deal with the consequences of nuclear incidents, and to provide compensation to victims in a fair and efficient manner.

The Key Provisions of the Civil Liability for Nuclear Damage Act, 2010 are:

  • Liability of the operator: The Act specifies that the operator of a nuclear installation will be liable for any nuclear damage that may occur due to a nuclear incident, and the liability will be channelled exclusively to the operator.
  • Compensation for nuclear damage: The Act provides for compensation to be paid to victims of a nuclear incident, which includes damage to property, loss of life or personal injury.
  • Limitation of liability: The Act specifies a maximum amount of liability that can be claimed by victims of a nuclear incident. The liability of the operator is limited to Rs. 1,500 crores for each nuclear incident.
  • Right to recourse: The Act also provides the operator of a nuclear installation the right to recourse against a supplier of nuclear material, equipment or services in case of a nuclear incident caused by a defect in the supplier’s material, equipment or services.

The Advantage of this Act is that:

  • Compensation for the Victims: Unlike the Bhopal Gas Tragedy, where the victims had to wait very long for compensation, this act establishes mechanism to compensate quickly and adequately.
  • Nuclear Safety: The act has strong emphasis on the standard of nuclear safety. This ensures that the installations are operated safely and risk of a nuclear incident is minimised.
  • International Cooperation: The act has provisions for international cooperation, so that the global best practices, safety standards and expertise can be shared with India.

However, the provisions of the act have been criticised for these controversial clauses:

  • India’s civil nuclear liability law is unique in that it includes a clause on supplier liability, which foreign and domestic suppliers are wary of due to potentially unlimited liability under the Act. The Act has spooked nuclear suppliers due to these two clauses, 46 and 17(b).
  • The liability cap on the operator may be inadequate to compensate victims in the event of a major nuclear disaster.
  • The Act has shoddy clauses, of which some are related to the definition of nuclear damage, the liability of the operator, and the right of recourse.

Germany has been phasing out the nuclear reactors, to make their country safer and avoid high-risk radioactive waste. India can also ensure its energy independence by focussing on renewables instead of Nuclear power, the risks of which are unmanageable in case of an accident.

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