The Civil Liability for Nuclear Damage Act, 2010
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The Civil Liability for Nuclear Damage Act, 2010 or Nuclear Liability Act is a highly debated and controversial Act which was passed by both houses of Indian parliament. The Act aims to provide a civil liability for nuclear damage and prompt compensation to the victims of a nuclear incident through a no-fault liability to the operator, appointment of Claims Commissioner, establishment of Nuclear Damage Claims Commission and for matters connected therewith or incidental thereto.[1]
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The Civil Liability for Nuclear Damage Act, 2010 | |
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Parliament of India | |
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Citation | Act No. 38 of 2010 |
Enacted by | Parliament of India |
Enacted | 25 August 2010 |
Assented to | 21 September 2010 |
Commenced | 11 November 2011 |
Status: In force |
This was one of the last steps needed to activate the 2008 Indo-U.S. civilian nuclear agreement as the United States nuclear reactor manufacturing companies require the liability bill to get insurance in their home state. The government had encountered fierce opposition while trying to push this bill through parliament on several occasions. This was because it contained several controversial clauses that the opposition parties claimed to be 'unconstitutional'.[2] The opposition believed the bill was pushed through due to US pressure though this was later denied by the government.
The Act effectively caps the maximum amount of liability in case of each nuclear accident at ₹15 billion (US$190 million) to be paid by the operator of the nuclear plant, and if the cost of the damages exceeds this amount, special drawing rights up to 300 million will be paid by the Central Government.
The Act made amendments in the Atomic Energy Act 1962 allowing private investment in the Indian nuclear power program. The issue of an accident is sensitive in India, where a gas leak in a US company's Union Carbide factory in Bhopal city killed about 20,000 people in 1984 in one of the world's worst industrial disasters. The Act came into force from 11 November 2011.[3]