Russia set to turn screws on India

Discussion in 'Economy & Infrastructure' started by Yusuf, Aug 14, 2012.

  1. Yusuf

    Yusuf GUARDIAN Administrator

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    NEW DELHI: If the government decides to bring Kudankulam's third and fourth units under the purview of the nuclear liability law, which makes suppliers liable for compensation in case of accidents, Russia will mount double pressure on India.

    Russia will not only increase the cost of the reactors, but also seek a change in the conditions for the credit line being provided by it to build them. Russian officials have warned that any "negative influence" on the 1988 agreement for the first and second unit and the 2008 civil nuclear cooperation agreement could jeopardize collaboration for nuclear power plants between the two countries. "We are still hopeful that a way out will be found for implementation of the roadmap of civil nuclear cooperation between the two countries as per these agreements as that is what PM Manmohan Singh had assured Russian deputy PM Dmitry Rogozin when he called on him recently," a Russian government source said.

    "There is some concern though about what is happening and if indeed nuclear liability law comes into play, not just the cost of the reactors will shoot up significantly but the terms and conditions for the credit line being extended for the reactors too will have to be changed," he added. The two nations recently signed a protocol for financing the third and fourth units under which Russia will offer an export credit line of close to $3.5 billion for the two pressurized water reactors. The amount is payable in 14 years, from the start of power generation, at 4% interest per annum.

    With Russia insisting all along that work on the third and fourth units, too, be carried out under the 1988 agreement between the two nations, which has ensured immunity for Kudankulam 1 and 2 from the liability law, the government has been in a bind over how to move ahead on the "third-generation" nuclear plants being built by the Russian-owned AtomstroyExport.

    The government now seems to have made up its mind with PM Manmohan Singh himself said to be not keen to waive off the right to recourse for Kudankulam's third and fourth units.

    Now, matters seem to have reached a head, but the Russian ambassador to India, Alexander Kadakin, had warned in March that Russia and India entered into nuclear cooperation only on the basis of deals signed in 1988 and 2008. "We have tried to accommodate India's interests with same terms of credit and we expect that the same conditions will be applicable," he had said.

    Singh recently sought to know from DAE who would pay in case of any accident at the new plants at Kudankulam. Not satisfied with the DAE explanation that India's international agreement with Russia would take care of liability issues, he then sought the views of the law ministry.
    The Times of India on Mobile
     
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  3. sob

    sob Moderator Moderator

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    This Nuclear liability bill is becoming an albatross around our neck.

    High time we develop a consensus on this issue, otherwise all the future plans for electricity generation will get stuck. We just cannot get on the high horse of nationalism. It has to be tempered by reality.
     
  4. Predator

    Predator Regular Member

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    where is that jholawalla who wanted to close all nuclear plants in TN? I don't remember his name but that habitual protester will be happy hearing this news.
     
  5. amitkriit

    amitkriit Senior Member Senior Member

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    Not at the cost of our dignity and the lives of our countrymen, particularly after the Bhopal disaster. Life is more important than money or electricity. Those who wish to do business with us will have to comply with our laws, they will make money will not they?
     
  6. Yusuf

    Yusuf GUARDIAN Administrator

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    Western nations are making a huge fuss for nothing. Billions of dollars worth of contract and the liability is peanuts considering the amount they will earn.

    In fact many in india say that te liability is too less. At the end its the indian govt which will end up shelling out more money.
     
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  7. roma

    roma NRI in Europe Senior Member

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    again it's our opportunity-"problem" - the challenge is to study what we want - modify and tailor the liability concept and clauses and find competent people who know how to negotiate - to offer to the suppliers a good deal while maintaining what is importatn to us - it is a study challenge - those who dont study rave and rant - but those who do , find the equilibrium win-win situation and they can move the process through
     
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  8. hit&run

    hit&run Elite Member Elite Member

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    Russia is preempting it with a view that India will accept American terms, so why they shouldn't have the same deal.

    PM visit to Iran will help bringing them on table. Burn oil if we can't burn yellow cake. Simple.
     
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  9. sukhish

    sukhish Senior Member Senior Member

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    russia can enter ENR agreement with india to get kundanklam waiver. they are also dregging their feet on ENR provisions, even though india got ENR waiver from NSG in 2008. liability law is a very good bargain in the hands of india. russia can say what ever it wants, we are not begging them for money.
    also they seems to have lost in libya and now syria is all most out of their hands. they can be friend pakistan for that matter.
     
  10. pmaitra

    pmaitra Moderator Moderator

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    So Russia is providing India with a credit line, but they needed money, more and more of money, for the Gorshkov! What exactly is going on? Russia can either be a poor country, or a rich country; not both at the same time.
     
  11. Rahul92

    Rahul92 Senior Member Senior Member

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    God damn it we don't need these many nuke reactors from other countries we can develop these after 2-3 years
     
  12. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    The company that is operating and maintaining the reactors has a certain level of liability. They purchase insurance to cover claims in case of accidents. In the case of beyond purview Acts of God they are not responsible.
     
  13. SADAKHUSH

    SADAKHUSH Senior Member Senior Member

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    A well thought way to overcome obstacles. I hope GOI officials are also thinking the same as you have put your POV.
     
  14. SLASH

    SLASH Senior Member Senior Member

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    Moving ahead without a liability bill would set a wrong precedent for the power plants to come. And why only nuke liability? It should for any project that can endanger the surrounding...
     
  15. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    Typical UPA. They deem it fit to suddenly change laws even on earlier signed projects.

    It is a repeat of Vodafone tax law.
     
  16. Yusuf

    Yusuf GUARDIAN Administrator

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    No law was changed. Liability laws were required to operationalize the nuke deal. We made the law
     
  17. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    We need hundreds of those, not to make bombs but electricity
     

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