India Approves Landmark Civil Nuclear Agreement

India’s parliament on Monday approved a long-delayed civil nuclear agreement, crucial legislation that could allow U.S. firms to proceed with deals to build nuclear power plants in that country. Firms had been reluctant to build nuclear facilities without a law that would limit their liability in the event of an accident.

The bill—which has yet to be signed into law by the president—cleared the lower house after ministers of parliament agreed to set the compensation cap in the event of a nuclear accident at $320 million. The bill was required as part of the 123 Agreement between India and U.S. in 2008, a historic deal that lifted a 34-year-old ban on U.S. and Indian civilian nuclear trade.

India plans to increase its nuclear capacity 15-fold by 2030—to over 60,000 MW from the present 4,180 MW. Ultimately, the country plans to supply 25% of electricity from nuclear power by 2050. At present, nuclear energy provides only 3% of power available in the country. It has been estimated that this growth could open up a $150 billion market to foreign firms.

India already has similar agreements with France and Russia. Firms from those countries have already been awarded contracts. Meanwhile, firms based in the U.S., like GE-Hitachi and Westinghouse Electric, have been waiting for the liability bill to pass before pushing ahead with deals.

Sources: Economic Times, POWERnews