India's old friend Russia talks tough on nuclear liability law

After US and France, it’s the Russians who now appear to be having problems with India’s nuclear liability law, and have joined them in putting pressure on India to make amendments to the “rigid” law.

It is not clear at the moment if the Russians have also asked India to ratify, as early as possible, the Convention on Supplementary Compensation, which if ratified will remove nuclear reactor suppliers from the ambit of India’s domestic nuclear liability regime.

Sources said, signs of Russia’s discomfort have emerged from the “ongoing discussions” between the two countries on signing a formal contract on starting work on civil nuclear reactors 3 & 4, at Kudankulam. Kudankulam 1 & 2 is almost complete and is likely to be commissioned this year.

Unlike reactors 1 & 2 that were brought under a formal bilateral contract before in 1998, Kudankulam 3 & 4 would fall under the purview of the new nuclear liability law passed by Indian Parliament last year. Sources said Russians are concerned over their “increased liability” and an “escalation” of price under the new nuclear liability regime.

Russia’s case is different from that of US since the Russian reactors in India are being built by state owned Russian companies who have the financial backing of the government.