India is learnt to have made it clear to the United States again that the two countries would have to work within the ‘four corners’ of the Indian Civil Liability for Nuclear Damage Act if the bilateral civil nuclear agreement was to be implemented in letter and spirit. There was no question of diluting the law as it was the property of Parliament. Any amendments in the law could only be made after their approval by Parliament. However, the Indian law was not in any way hindrance to any investment in the nuclear energy sector, the Indian side is believed to have told the American side at the 5th India-US strategic dialogue held last week. The US and other nuclear partners of India like Russia and France have objected to section 17(b) of the Act, saying it runs contrary to the International Convention on Supplementary Convention for Nuclear Damage (CSC). The CSC requires domestic liability laws to conform to a model text but the Indian Act is tougher as it allows legal action against suppliers if an accident is caused by faulty or defective equipment. The US has been quite candid in stating that the Indian law violates the CSC. The full implementation of the nuclear deal that was signed between India and the US in October 2008 is likely to figure prominently during talks between Prime Minister Narendra Modi and President Barack Obama during their Summit in late September in Washington. Sources here denied the perception that the nuclear deal has not made much headway because of Washington’s reservations over the Indian Act. Sources recalled that a pre-early works agreement had been signed between the Nuclear Power Corporation of India Limited (NPCIL) and the American Westinghouse Electric Company (WEC) in September last year for the construction of two nuclear power reactors at Mithi Virdi in Gujarat. A revised and restated confidentiality agreement between the NPCIL and the WEC has also been finalised to clarify information sharing mechanisms. Commercial negotiations between the NPCIL and the WEC regarding the setting up of two reactors were also taking place. The two American reactors are expected to generate about 10000 MW of power. The joint statement issued by the two sides at the end of the strategic dialogue also stated that the two leaders reaffirmed their commitment to the full implementation of the nuclear deal. Both sides urged the NPCIL and US companies WEC and General Electric-Hitachi to expedite the necessary work to conclude pricing and contractual details, they looked forward to advancing the government-to-government dialogue and facilitating the establishment of US-built nuclear power plants in India. The CSC tangle There was no question of diluting the law as it was the property of Parliament and the Indian law was not in any way a hindrance to any investment in the nuclear energy sector, Delhi is believed to have told the American side at the 5th India-US strategic dialogue held last week. The US and other nuclear partners of India like Russia and France have objected to Section 17(b) of the Act, saying it runs contrary to the International Convention on Supplementary Convention for Nuclear Damage (CSC). The CSC requires domestic liability laws to conform to a model text but the Indian Act is tougher as it allows legal action against suppliers if an accident is caused by faulty or defective equipment. The US has been quite candid in stating that the Indian law violates the CSC