India, US trying to get nuclear deal over line during Obama trip

NEW DELHI: India and the United States were trying to narrow differences on nuclear trade on Thursday ahead of President Barack Obama’s visit, but New Delhi ruled out a change in its liability law that has choked off US investment.
Nuclear commerce worth billions of dollars was meant to be the centrepiece of a new strategic relationship between the United States and India, allowing New Delhi access to nuclear technology and fuel without giving up its weapons programme.
But the 2010 Indian nuclear liability law that makes equipment suppliers ultimately responsible for an accident has held back firms including GE-Hitachi, Toshiba’s Westinghouse Electric Company and France’s Areva from proceeding with the construction of reactors. On Thursday, negotiators from the two governments met for a second day in London to hammer out an accord that Obama and Indian Prime Minister Narendra Modi hope to announce during talks set for Sunday. It followed talks in Vienna and New Delhi.
“Even as we speak our negotiators are working together in a collaborative manner in London. It is the third time they are meeting in approximately 45 days, you can see the element of effort that is going into the nuclear issue,” foreign ministry spokesman Syed Akbaruddin told reporters.
India has offered to set up an insurance pool to indemnify companies which have won the right to construct reactors in the country against liability in the case of a nuclear accident, as a way around the law.
It says the law can’t be changed for lack of political support. Under the plan readied by state-run reinsurer GIC Re, insurance would be bought by the companies contracted to build the nuclear reactors who would then recoup the cost by charging more for their services.
Alternatively, state-run operator Nuclear Power Corporation of India (NPCIL) would take out insurance on behalf of these companies.
“What is being discussed is how, within the four walls of our legal framework, our legislation, we can provide assurances to our partners in the US of any concerns they may have through their vendors or their lawyers,” Akbaruddin said.