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India: Compensation System for Nuclear Accidents

(June 17, 2010) The Civil Liability for Nuclear Damage Bill, 2010, introduced in India's Parliament on May 7, 2010, aims to establish a compensation system for nuclear accidents. India is required to enact legislation on such compensation to fully implement a 2008 agreement between India and the United States on nuclear cooperation. Until India passes the legislation, uncertainties regarding liability and insurance in the event of an accident will preclude U.S. companies from operating in the country. (Rama Lakshmi, India Introduces Controversial Legislation on Compensation for Nuclear Accidents, THE WASHINGTON POST (May 8, 2010),

The Indian Parliament, under strong opposition from major political parties, referred the proposed bill to the Parliamentary Standing Committee on Science and Technology, Environment, and Forests on May 14, 2010, for further evaluation. Most of the criticisms are based on dissatisfaction with the response to past industrial accidents and pricing provisions of the bill. The Bhopal gas verdict has initiated a fresh debate on the civil nuclear liability legislation, and the parliamentary standing committee is now scrutinizing different provisions of the bill. (Government Backtracks on Nuclear Liability Change, THE HINDU (June 15, 2010),; Constance Johnson, India: First Convictions in Bhopal Case, GLOBAL LEGAL MONITOR (June 9, 2010), //