By Muhammad Umar
President Obama’s expected visit to India is causing hysteria in Indian media. Pundits left and right are already busy making too much out of nothing.
Although at the moment there is a nuclear cooperation deal between the two countries, it has not been executed due to India’s strict liability law, which makes suppliers liable in case of an accident.
The nuclear suppliers are held to unlimited liability both in time and costs, which discourages American suppliers from taking part in the nuclear cooperation deal.
During his visit to the United States late last year, Prime Minister Modi made a commitment to President Obama to amend the liability act, with the aim of reducing the burden on nuclear suppliers. Modi failed to change the act.
The government has now proposed to sell insurance to those companies willing to supply nuclear materials, in an effort to work around the liability law. This proposal has been a direct result of Modi’s botched attempt at amending the law.
Modi hopes that by offering insurance, he will be able to attract American suppliers. But the question remains, why should the American companies be forced to buy insurance, and will the insurance ensure zero liability or will the American companies have to share financial responsibilities?