Skip to main content

US likely to seek abrogation of India's nuclear liability law for the sake of "market reforms", suggests WSJ

By A Representative
Clear indications have emerged that, following the controversial nuclear deal between President Barack Obama and Prime Minister Narendra Modi, the US would now insist that India should bend and water down the 2010 nuclear liability law, Civil Liability for Nuclear Damage Act (CLNDA). In an unsigned editorial, America's powerful business daily, "Wall Street Journal" (WSJ) has said that the deal was a "test" whether India would allow market forces to play a role in supplying nuclear technology, and if the "red tape" which still exists in the form of this liability is done away with.
Titled "A US-India Nuclear Test", the editorial praises Modi for promising "to cut the notorious Indian red tape that scares away foreign investors, particularly when it comes to liability laws", but insists, quoting top nuclear suppliers and their supporters within the US, that India should actually act.
Pointing out that this is of "crucial importance" to ensure that the two countries keep up with their promise to be “best partners”, the daily says that the 2008 "reconciliation" under which India agreed to open its civilian reactors to international inspections through the International Atomic Energy Agency (IAEA) was put to nought in 2010 with Indian Parliament "enacted liability laws that broke with international conventions and left US power-plant suppliers vulnerable to excessive criminal and civil penalties in the event of an accident."
The daily argues, "Indian concerns stemmed from the 1984 Bhopal catastrophe that killed thousands around an American-owned chemical factory. But placing liability on foreign suppliers rather than local plant operators would effectively bar firms such as General Electric and Westinghouse from the Indian market."
The editorial quotes Westinghouse CEO Daniel Roderick as telling the "Pittsburgh Post-Gazette" that with the 2010 law, “every person in India can sue you. That’s the bigger issue —- to withstand the costs of a billion people trying to sue you.” Westinghouse has been contracted to supply nuclear reactors for the proposed nuclear plant at Mithi Virdi in Gujarat. The daily further quotes former US diplomat Ashley Tellis as saying, “If litigants were able to file suit against suppliers, essentially it could destroy the whole industry.”
The 2010 nuclear liability law, the daily points out, became the main reason for the "foreign firms suspended their multi-billion-dollar construction plans in 2010." It insists, it contributed to the souring relations between India and the US: "Coupled with Indian backsliding on foreign investment in retail, insurance and other industries, along with diplomatic spats over issues such as Afghanistan, the nuclear-liability controversy contributed to years of drift in US-Indian relations."
WSJ believes, the latest nuclear deal with Modi "seeks to clear the impasse by having New Delhi work with state-backed insurers to create an insurance pool for accident victims while indemnifying suppliers against liability." At the same time, it adds, "Whether it will work is unclear." 
While Westinghouse’s Roderick has "echoed Obama in calling the pact a breakthrough", the fact is "his firm and others stressed that they haven’t seen the details", as the "difficulty is that New Delhi will implement the agreement through a form of executive action meant to avoid having to amend the 2010 liability law."
The daily insists, agreeing with what the suppliers like Westinghouse want, "The underlying law allows the government to set up an insurance pool but appears less clear on whether suppliers can be indemnified from claims by accident victims. Suppliers have previously sought amendments to the law, not simply executive action." 
It warns, "So it may be a while before any foreign firm breaks ground on a new Indian power plant."
It says, while it may be "worth celebrating the bonhomie displayed by Messrs Modi and Obama, along with the growing cooperation between US and Indian defense planners", yet "protectionist policies and political dysfunction in New Delhi continue to limit India’s growth as an economic and diplomatic power." 
Praising Modi for his ability to overcome "political resistance", the daily suggests he would hopefully overcome this problem also and go ahead with "pro-market reforms" that would allow the likes of Westinghouse to invest in nuclear generation in India.

Comments

TRENDING

Wave of disappearances sparks human rights fears for activists in Delhi

By Harsh Thakor*  A philosophy student from Zakir Hussain College, Delhi University, and an activist associated with Nazariya magazine, Rudra, has been reported missing since the morning of July 19, 2025. This disappearance adds to a growing concern among human rights advocates regarding the escalating number of detentions and disappearances of activists in Delhi.

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra  Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

‘Act of war on agriculture’: Aruna Rodrigues slams GM crop expansion and regulatory apathy

By Rosamma Thomas*  Expressing appreciation to the Union Agriculture Minister for inviting suggestions from farmers and concerned citizens on the sharp decline in cotton crop productivity, Aruna Rodrigues—lead petitioner in the Supreme Court case ongoing since 2005 that seeks a moratorium on genetically modified (GM) crops—wrote to Union Minister Shivraj Singh Chouhan on July 14, 2025, stating that conflicts of interest have infiltrated India’s regulatory system like a spreading cancer, including within the Indian Council for Agricultural Research (ICAR).

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan  Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Overriding India's constitutional sovereignty? Citizens urge PM to reject WHO IHR amendments

By A Representative   A group of concerned Indian citizens, including medical professionals and activists, has sent an urgent appeal to Prime Minister Narendra Modi, urging him to reject proposed amendments to the International Health Regulations (IHR) before the ratification deadline of July 19, 2025. 

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat*  In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative   At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Activists allege abduction and torture by Delhi Police Special Cell in missing person probe

By A Representative   A press statement released today by the Campaign Against State Repression (CASR) alleges that several student and social activists have been abducted, illegally detained, and subjected to torture by the Delhi Police Special Cell. The CASR claims these actions are linked to an investigation into the disappearance of Vallika Varshri, an editorial team member of 'Nazariya' magazine.

India’s zero-emission, eco-friendly energy strategies have a long way to go, despite impressive progress

By N.S. Venkataraman*   The recent report released by OPEC’s World Oil Outlook 2025 has predicted that by the year 2050, crude oil would replace coal as India’s key energy source. Clearly, OPEC expects that India’s dependence on fossil fuels for energy will continue to remain high in one form or another.