Obama and Modi agree to limit US liability in case of nuclear disaster

‘US industrial interests took centre-stage at the start of Barack Obama’s visit to India as he and the prime minister, Narendra Modi, outlined a deal to limit the legal liability of US suppliers in the event of a nuclear power plant catastrophe.

Thirty years after an infamous chemical leak killed thousands at Union Carbide’s factory in Bhopal, the threat of tough Indian compensation laws has frustrated US hopes of an export boom in the energy sector – despite an agreement by former US president George W Bush to share civil nuclear technology in 2005.

After pressure from US diplomats, the Indian government was thought to have agreed a state-backed insurance scheme that would cap the exposure of nuclear suppliers and open the door to billions of dollars of new contracts. India will also allow closer tracking of spent fuel to limit the risk of it falling into terrorist hands.’

Read more: Obama and Modi agree to limit US liability in case of nuclear disaster