India to sign an international treaty on nuclear liability in response to a U.S. demand

Jena (Reuters) - India on Wednesday signed an international treaty establishing liability in the field of civilian nuclear energy, a move sought by the United States to reassure U.S. suppliers wishing to enter nuclear power market in India, which is estimated at $ 150 billion.

The signing ceremony was held at the headquarters of the International Atomic Energy Agency in Vienna a few days before a visit by U.S. President Barack Obama to India next month for talks with senior American businessmen working in Asia's third-largest economy.

The Indian Parliament passed legislation in August to open the domestic nuclear market. But India's nuclear liability law gives India also have the right to claim damages from the suppliers in case of accidents in nuclear plants. India is the only country to have its law contains such a provision which was added after considerable political pressure.

The entry of companies such as General Electric and Westinghouse Electric Co. - a unit of Toshiba Corporation based in the United States - India is uncertain unless New Delhi, more clarity for private companies with regard to liability for payment of compensation.

The United States urged India to sign the Treaty of Compensation for Nuclear Damage to reassure its suppliers to the responsibilities that will be compatible with international standards.

There are fears in India to relieve the signing of the Treaty provisions on the responsibility of its suppliers. But most commentators say it will help to reassure U.S. companies to India is part of an international network of nuclear trade.

He said political commentator Indian Praful Bioai "Treaty of compensation for nuclear damage is silent on the right of return (to the other party) and its limits. The treaty itself does not help U.S. companies ... so it will not be Americans dissatisfied with a lot and will continue to press to gain some exceptions" in domestic law .

The Hindu newspaper said this week that the government might sign the treaty before Obama's visit "as a means to avoid U.S. pressure to modify the" domestic law.

But an Indian diplomat in Vienna said that the signing of the treaty did not enter into force after the New Delhi part of the obligations under the nuclear deal reached with Washington two years ago and it would not affect domestic legislation.