Business groups criticize India's new nuclear law

By siliconindia   |   Thursday, 26 August 2010, 22:50 IST   |    1 Comments
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Business groups criticize India's new nuclear law
New Delhi: The nuclear liability bill, which granted India access to foreign civilian technology was passed by law makers recently after the government conceded to opposition demands to toughen the law. Business groups in the country criticize this by saying that the new legislation aimed at throwing open India's lucrative 150-billion-dollar civilian atomic energy market could deter private suppliers because of tough provisions. The legislation threatens to hamper India's "nuclear renaissance and completely undo the government's efforts to accelerate nuclear power generation in our country," said the Federation of Indian Chambers of Commerce and Industry in a statement. They have zeroed in on a clause in the bill that would allow nuclear power plant operators to pursue suppliers of equipment, raw materials and services for 80 year after the construction of any plant in the event of an accident. They strongly criticize the bill by saying that it intended to give private firms such as U.S.-based General Electric access to India, could throw new hurdles in the way of the energy-hungry country'energy ps nascent nuclear power sector. The bill has also been criticized by the Confederation of Indian Industry. Director General, Chandrajit Banerjee, said the liability period was 'a major deterrent' for suppliers and went against the global practice enshrined in the Chernobyl agreement of placing liability exclusively on operators. Long-term insurance cover for suppliers was not available globally and the provision "would stall the growth of the nuclear manufacturing industry in India".

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