There has been much speculation & confusion surrounding the understanding reached with the United States on January 25, 2015 during the visit of President Obama to India with respect to the Civil Nuclear deal. This is supposed to be the Administrative Arrangement to implement the September 2008 bilateral 123 Agreement between both the countries. The Ministry of External Affairs (MEA) today released a list of ‘Frequently Asked Questions and Answers on Civil Liability for Nuclear Damage Act 2010 and related issues’. The FAQs are available on the MEA website. Q1. What is the understanding reached with the United States on January 25, 2015 during the visit of President Obama to India? Ans. India and the United States have reached an understanding on the issues related to civil nuclear liability and finalized the text of the Administrative Arrangement to implement the September 2008 bilateral 123 Agreement. This will allow us to move towards commercial negotiations on setting up reactors with international collaboration in India and realize the significant economic and clean energy potential of the civil nuclear understanding of 2005-2008. Q2. How was this understanding reached? Ans. It may be recalled that during PM’s visit to the U.S. in September 2014, the two leaders reaffirmed their commitment to implement fully the India-U.S. civil nuclear cooperation agreement and established a Contact Group on advancing the implementation of civil nuclear energy cooperation. The Group, comprising representatives from Ministry of External Affairs, Department of Atomic Energy, Nuclear Power Corporation of India Ltd (NPCIL), Ministry of Finance, Ministry of Law & Justice, in addition to the representatives from U.S. Government, also had an interface with the companies – NPCIL on the Indian side and Westinghouse and General Electric on the U.S. side. It met three times in New Delhi (16-17 December 2014), Vienna (6-7 January 2015) and London (January 21-22, 2015). Based on these discussions, an understanding was reached with the U.S. on the two outstanding issues on civil nuclear cooperation, which was confirmed by the leaders on January 25, 2015. Q3. Has India agreed to amend its Civil Liability for Nuclear Damage Act of 2010 (CLND Act 2010) and the CLND Rules of 2011? If not now, would they be amended in the future? Ans. There is no proposal to amend the Act or the Rules. Q4. How have U.S. concerns over the CLND Act then been resolved? Ans. During the course of the discussions in the Contact Group, using case law and legislative history, the Indian side presented its position concerning the compatibility of the Civil Liability for Nuclear Damage (CLND) Act and the Convention on Supplementary Compensation for Nuclear Damage (CSC). The idea of the India Nuclear Insurance Pool as a part of the overall risk-management scheme for liability was also presented to the U.S. side. Based on the presentations by the Indian side, and the discussion thereon, there is a general understanding that India’s CLND law is compatible with the CSC, which India has signed and intends to ratify. Q5. What is the CSC? Ans. The objective of the 1997 Convention on Supplementary Compensation for Nuclear Damage (CSC) is to establish a worldwide liability regime and to increase the amount of compensation available to the victims of nuclear accidents. A State which is a party to either the 1963 Vienna Convention or the 1960 Paris Convention could become a party to the CSC. A State which is not a party to either of these conventions could also become a party to the CSC if its national law on nuclear liability is in compliance with the provision of the CSC and its Annex, which is an integral part of the CSC. India not being party to the Vienna or the Paris Conventions signed the CSC on 29 October 2010 on the basis of its national law namely the CLND Act. Q6. Is India’s CLND Act compatible with the CSC? Ans. The provisions of the CLND Act are broadly in conformity with the CSC and its Annex in terms of channeling the strict/absolute legal liability to the operator, the limitations of the liability in amount and time, liability cover by insurance or financial security, definitions of nuclear installation, damage, etc. In fact, the CLND Act provides the basis for India joining an appropriate international liability regime such as the CSC. Article XVIII of CSC requires that the national law of a Contracting Party that is not a Party to either the Vienna Convention or the Paris Convention has to comply with the provisions of the Annex to this Convention. The CLND Act is compliant with the Annex to the Convention. Q7. Does the Act channel the liability to the Operator of a nuclear plant as envisaged under CSC? Ans.