Lok Sabha approves Nuclear Bill
The Lok Sabha on Wednesday approved the Civil Nuclear Liability Bill to open up the country’s US $150 billion nuclear power market. The bill was approved after the government agreed to tougher provisions that an industry group said would hamper the sector’s growth.
The Bill is needed for the entry of firms such as US-based General Electric and Westinghouse Electric, a subsidiary of Japan’s Toshiba Corp, who are reluctant to step in without clarity on accident compensation.
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The passage of the Bill is a personal victory for Prime Minister Manmohan Singh, whose 2008 deal with the United States ended India’s long isolation in the global nuclear market, and will bind the two nations in closer economic and strategic ties.
It will now be sent to the upper house, and following ratification there, to the president to be signed into law.
The opposition Bharatiya Janata Party got around to back the Bill, after the Congress party-led coalition government removed a provision that would have made it difficult to extract compensation from private suppliers and contractors.
The ruling coalition has only a narrow majority in the lower house and does not control the upper house, making opposition support crucial for the Bill’s smooth passage.
Since it was first introduced in parliament in April, government has given in to opposition demands on the provisions of the Bill several times, trebling the compensation cap in case of an accident and extending liability to suppliers.
The see-sawing negotiations are emblematic of India’s fractured polity, and highlight the challenges ahead for the government, which is involved in tortuorous negotiations on other key financial reform proposals with opposition and allies. Agencies
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