India's Nuclear Plans Whirled

Atomic power can provide India some form of energy sufficiency but there are still regulatory and political matters to be surmounted.

It has been a long journey so far – the Indo-US pact signed a year and a half back, exemption at the NSG and abiding by the IAEA norms.

India has announced grand plans to raise nuclear energy capacity from 4340MW at present to nearly 500,000MW by 2050.

The new challenges relate to land acquisitions issues and evolving a consensus on the Civil Nuclear Liability Bill (CNLB) and adoption of Convention on Supplementary Compensation (CSC) for Nuclear Damage (specifically for America), all delicate matters that need considerable sorting.

It is clear that these issues are not just about business and politics. It is about protecting the interests of human victims, should such a situation arise. They have in the past, such as Chernobyl.

The Bhopal Gas tragedy should be a good enough reminder of an error prone compensatory regime.

Thus, the debate is not only about retaining confidence of power plant operators in joining the estimated US$150 billion worth Indian civil nuclear energy market.

It is about maintaining dignity of human lives, in the event of an accident. In India such matters are always the most ignored.

Matters so far don’t look good given allegations being leveled against the ruling party for pandering to American interests and fixing liability limits at a mere Rs.5 billion or $100 million.

The crux is about placing responsibility of compensation in event of nuclear damage whether on the supplier/designer/operator/ “Installation State” (which possesses nuclear facilities) by the wronged party (which too is ambiguous).

There are loopholes and anomalies related to assessments of “risks involved” and not on “damages involved.”

Who is liable in the event of an armed conflict or terrorist attack? These are very pertinent threats in today’s world.
Complex issues such as claims awarded by designated authority, exemptions and operator insurance in the current format also indicate multiple loopholes that have a potential to distort the advantages of nuclear energy generation.

The solution lies in an immediate redrafting and rethinking on every crucial detail before the foreclosure of the 123 nuclear deal.
                                                 
The government should be complimented for enthusiasm to put in place civil nuclear pacts with a host of countries for import of reactors and fuel.

There has also been synchronization of Rajasthan Atomic Power Project-Unit 6 with the Northern Grid, identification of locations for nuke sites and pacts between state run units like BHEL and NTPC with the regulatory body Nuclear Power Corporation India Ltd,.

But all this would be reduced to a naught if the other loopholes are not plugged and a clear policy not cut out. The role for private firms in atomic power nuclear power generation also needs to be worked out.

Indian thirst for energy ranks third in the world, next only to US and China.  A firm and collective resolution and action are essential.

Any tampering with plans to plug the power deficit will directly impact the country’s GDP. The sooner a sound plan is tabled the better for the India emerging story. Disclaimer: The views expressed in Hourglass are the author's own.