The Civil Liability for Nuclear Damage Act of India: An engineering perspective regarding Supplier's liability

Civil liability for nuclear damage regime established in India follows global practice in this area and has a unique provision that enables an Operator to exercise a right of recourse against a Supplier. Rules promulgated under the Act provide 'explanation' about the Supplier which has been formulated based on practices in nuclear industry. The paper analyses the 'explanation' and concludes that India's legislation designates the plant system designer as the Supplier. Any examination of the Indian law without studying the 'explanation' leads to erroneous conclusions. To protect his interest against the Right of Recourse, the system designer can avail of the insurance policy that is meant for the suppliers. Vendors, other than the system designer, have no liability under the Right of Recourse. A harmonious analysis of debates and various documents indicates that the Section 46 of the Act is directed only towards the Operator. This paper examines the issue of Supplier's liability in the light of explanation about a supplier as included in the Rules.