Monday, February 8, 2016

[Editorial # 60] Nuclear ambiguities

[Following editorial has been published in The Hindu on 6th February 2016. Read through it and try to answer the questions that follow. Please do not copy and paste answers. The objective of this exercise is to get you in the groove of answer-writing. Try to write in your own words. Don't hesitate to write in a bulleted-format, if you are uncomfortable in writing in paragraph form.]

India’s nuclear politics was in the limelight again last week, and not for the best of reasons. More than five years after it signed the Convention on Supplementary Compensation (CSC), India ratified the insurance pooling agreement, which pertains to civil liability in the event of a nuclear accident in any of the acceding countries. Prima facie, this was a good move, bringing to an end a game of will-they-or-won’t-they, which had cast India in poor light internationally and which sat uncomfortably beside three hard-fought nuclear landmarks — the India-U.S. Civil Nuclear Agreement (CNA) and the Nuclear Suppliers Group (NSG) waiver, both passed in 2008, and India’s Civil Liability for Nuclear Damage Act (CLNDA), which became law in 2010. However, India’s CSC ratification does not clear the air so far as an important stumbling block to bilateral nuclear commerce is concerned: is CLNDA truly in conformity with the CSC, as Indian officials have repeatedly claimed, or does it cast a shadow of doubt on supplier liability, which is a matter of critical importance to U.S. nuclear corporations? The ambiguity stems from two clauses of CLNDA, Sections 17(b) and 46. Under Section 17(b), liability for a nuclear accident can be channelled from the operator, which is the Nuclear Power Corporation of India, to suppliers of nuclear material, specifically if the accident is due to an act of the supplier or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services. Section 46 permits victims of a nuclear incident to sue the operator or the supplier for damages applying tort law, even though such proceedings would be beyond the scope of CLNDA and its liability cap, and thus exposing suppliers to unlimited liability. Both clauses are likely to raise suppliers’ cost of insurance cover, possibly beyond what is feasible commercially and within the confines of competitive energy pricing.


India’s CSC ratification is a reminder of the steep fall from the heady days of the announcement of the CNA a decade ago to the weak and unconvincing efforts by the Narendra Modi administration, following U.S. President Barack Obama’s visit to India, to persuade corporations such as General Electric-Hitachi and Westinghouse that they would not be liable in the event of an accident. India’s reliance on contractual rules and parliamentary debates to explain away supplier concerns has been greeted with scepticism by representatives of U.S. nuclear corporations — first on the grounds that no rule can supersede constitutional statute, and second, as there are other, on-record views in Parliament that contradict those cited by the MEA. While the liability morass has stymied U.S. investment in Indian reactors, Russia, France and Japan have moved forward with their respective bilateral agreements for nuclear commerce. This suggests that the recognition of India as a responsible nuclear power by the international community — the U.S. and the other NSG states — has allowed for windows of opportunity for nuclear commerce in India, even in the post-Fukushima world.

Questions:

1. What is Convention on Supplementary Compensation (CSC)?

2. What is the difference between signing and ratification of an agreement? Mention few examples of agreements or treaties
a) Not signed by India
b) Signed but not ratified yet. 
c) Both Signed and Ratified

3. What is insurance pooling agreement? Why is insurance required in setting up of Nuclear Plants?

4. What is Nuclear power? How is electricity generated at a Nuclear Power Station?

5. How many and where all does India has Nuclear Power Plants?

6. What is the total installed capacity of Nuclear Power in India/World?

7. Which country depends on Nuclear power for its energy needs the most?

8. Why is India putting so much of emphasis on Nuclear Power? 

9. What are the various challenges in increasing the installed capacity of Nuclear Power in India?

10. Does India have sufficient input material required for Nuclear Power generation? Where from does India meet it requirements of those input materials?

11. On a map of India plot the various locations from where input material for Nuclear power plants is sourced.

12. Nuclear energy though a clean energy source in terms of its carbon footprint, has got many disadvantages which make it unfit to replace the conventional energy sources completely. Comment (200 words)


16 comments:

  1. 1.The Convention on Supplementary Compensation (CSC) is an international nuclear liability regime governed by International Atomic Energy Agency (IAEA). The convention, signed in 1997, but so far not in force for lack of interest, channels and pins absolute liability onto the operators of the nuclear power plant. In addition, it also acts as a pool from where signatory countries can draw funds if necessary in case of a nuclear accident. With Japan signing and ratifying CSC in January this year, it came into force on 15 April.

    ReplyDelete
  2. 2. Signing of an agreement demonstrates a particular party's willingness to accept and examine the objectives and purpose of a treaty, though it is not binding on the party. Ratification is the process of by which an agreement becomes legally binding on a particular party, usually by vote.
    a).Treaties not signed by India- Comprehensive Nuclear Test Ban Trety, Treaty on Non Proliferation of Nuclear Weapons, United Nations Refugee Convention, Minamata Convention on Mercury.
    b) Treaties signed but not ratified- UN Convention on Corruption, Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (CAT), 1984, Worst Forms of Child Labour Convention, 1999 (No. 182), Minimum Age Convention, 1973, Right to Organize and Collective Bargaining Convention, 1949, Freedom of Association and Protection of the Right to Organize Convention, 1948
    c)Treaties signed and ratified- Marrakesh Treaty, Kyoto Protocol, Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), The Montreal Protocol, United Nations World Summit on Sustainable Development, Ramsar Convention.

    ReplyDelete
  3. 1. The Convention of Suplementry Compensation (CSC) is primarily a functional body deals with an nternational nuclear liability under International Atomic Energy Association (IAEA). This convention deals with the absolute liability onto all the countries who are signatories, for the operation of their respective nuclear power plants. It also ensures the finanacial backing to all the signatory countries in cases of unexpected nuclear accidents and losses. The convention was formulated and commenced in 1997.
    Recognising the importance of the measures provided in the Vienna Convention on Civil Liability for Nuclear Damage and the Paris Convention on Third Party Liability in the Field of Nuclear Energy as well as in national legislation on compensation for nuclear damage consistent with the principles of these Conventions. Desirous of establishing a worldwide liability regime to supplement and enhance these measures with a view to increasing the amount of compensation for nuclear damage. Recognising further that such a worldwide liability regime would encourage regional and global co-operation to promote a higher level of nuclear safety in accordance with the principles of international partnership and solidarity.

    ReplyDelete
  4. 2. There is primarily a big and sinificant difference between "signing" the convention or treaty and "ractification" of any trety/convention. Signing the convention refers to the fact that, the govenment or PM/ President/Chancellor has agreed to follow up to the convention. Signing means that a country representer or the government wants to participate in the bilateral o multilateral treaty. In this case, the entire governmnetal system is NOT involved. The treaty is not YET accepted in the Parliament of the country. Whereas on the flipside, Ractification refers to the fact that, the entire parliament has given its accent on the respective treaty or convention.
    There is bog gap lying between mere signing the treaty or convention and ractification. This gap is bridged up by following the proper procedure of passing the law or a bill by the ruli9ng government. Such passing of law might include the contribution of the opposition party, which is a big task to deal with. Thus, the ractification holds a really vital role in the entire journey from 'wanting' a treaty to actually 'being a part' of it.
    Treaties not Signied by India:
    Comprehensive Nuclear Test Ban Trety,
    Treaty on Non Proliferation of Nuclear Weapons,
    United Nations Refugee Convention,
    Minamata Convention on Mercury.
    Treaty of Refugees
    Jpanese Peace Treaty in 1952
    Treaties Signed but NOT Ratified
    UN Convention on Corruption,
    Convention against Torture and Other Cruel,
    Inhuman or Degrading Treatment or Punishment (CAT), 1984,
    Worst Forms of Child Labour Convention, 1999 (No. 182),
    Minimum Age Convention, 1973,
    Right to Organize and Collective Bargaining Convention, 1949,
    Freedom of Association
    Protection of the Right to Organize Convention, 1948
    India and Armenia signed a DTA Protocol on January 27, 2016.
    The Indian Income Tax Department announced on January 13, 2016, that the DTA Protocol with Belarus entered into force on November 19, 2015.
    India and Japan signed a DTA Protocol on December 11, 2015.
    India and Seychelles signed a TIEA on August 26, 2015.
    Treaties which India Ractified
    Kyoto Protocol,
    Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES),
    The Montreal Protocol,
    United Nations World Summit on Sustainable Development,
    Ramsar Convention.
    Marrakesh Treaty
    India's Cabinet on May 6, 2015, approved the pending DTA with South Korea.
    India's Cabinet on December 2, 2015, approved the signing and ratification of a DTA Protocol with Japan.
    Bhutan's National Council on February 6, 2014, approved a law to ratify the DTA signed with India.

    ReplyDelete
  5. 5.
    Tarapur Atomic Power Station - Thane - Maharashtra
    Rajasthan Atomic Power Statio - RawatBhata - Chittorgadh - Rajasthan
    Kakrapar Atomic Power Station - Surat - Gujarat
    Kudankulam Nuclear Power Plant - Trunelveli - Tamil Nadu
    Kaiga Nuclear Power Plant - Uttara Kanadda - Karnataka
    Madras Atomic Power Station - Kalpakkam - Kanchipuram - Tamil Nadu
    Narora Atomic Power Station - Bulanshahar - Uttar Pradesh
    Gorakhpur Atomic Power Station - Fatehabad - Haryana

    ReplyDelete
  6. 8.
    After the slowdown following an initial phase of expansion, there is renewed global interest in nuclear power generation around the world. Nuclear technology offers important advantages compared to other sources of electricity. Energy is the most fundamental requirement of every society or nation as it progresses through the ladder of development. Of course, once it reaches a relative degree of development, the energy demand becomes more stable. There is a distinct and categorical correlation between the energy consumption and income of a nation each reinforcing the other. Cars, ships and aircraft to move, hospitals to give quality healthcare, education, as it follows the model of e-connectivity, production of more and better goods, irrigation for better farming, every element of our lives is increasingly going to become energy-intensive that is a necessary prerequisite for development. This is clearly reflected in the average energy consumption per person across nations for instance, an average American consumes more than 15 times the energy consumed by an average Indian.
    Today, India finds itself going through a phase of rapid ascent in economic empowerment. Industries are evolving at a significantly higher rate since liberalisation. Our focus for this decade will be on the development of key infrastructure and the uplifting of the 600,000 villages where 750 million people live, as vibrant engines of the economy. It is predicted that the total electricity demand will grow from the current 150,000 MW to at least over 950,000 MW by the year 2030 which will still be less than one-fourth of the current U.S. per capita energy need. By 2050, the demand could go even higher, and the per capita energy demand would be equal to the current French or Russian figure of about 6000 W per capita.
    Nuclear energy is a critical technology for reaching the CO2 emission reduction targets recommended by the scientific community and politically endorsed by an increasingly large number of countries. Greenhouse gas emissions across the entire lifecycle of nuclear energy (including uranium mining and enrichment) are comparable with those of wind power. Nuclear power saves 0.7 billion metric tons of CO2 emissions per year in the European union, compared to the 0.4 billion metric tons required to reach the Kyoto Protocol targets.Fossil fuel prices have a significant impact on the cost of electricity generated by coal, and especially gas, power stations. The price of CO2 also is an important factor in the cost structure of gas, and especially coal, power plants. On the contrary, the competitiveness of nuclear power depends very little on the price of uranium and not at all on the price of CO2. Raw materials represent a very small portion of nuclear power’s total cost. A doubling in the price of uranium would increase production costs by around 5%. A long-term view of the energy sector reveals nuclear power as a particularly competitive source of electricity, on the basis that it offers stable and predictable production costs. Nuclear power is competitive to gas without a carbon limit, and only a minimal CO2 limit makes it competitive with coal.
    Nuclear energy offers a number of economic, environmental, strategic and operational advantages. It helps in the fight against climate change. It is competitive relative to other electricity sources and offers protection from the volatility of fossil fuel and CO2 prices. It offers a high return for investors and limits increases in the price of electricity for consumers in the context of a high increase in hydrocarbon prices. It offers supply security: uranium resources are well distributed around the world and nuclear fuel is easily stored, unlike hydrocarbon reserves which are concentrated in the Middle East and Russia. Russian, Qatar, Saudi Arabia and Iran alone hold more than two-thirds of all oil and gas reserves.
    That is why, not only India, but the entire globe is putting so much emphasise on the Nuclear Power.

    ReplyDelete
  7. 9. The opportunity for growth in the nuclear power generation industry is offset by a number of major challenges faced by countries around the world are economic, technical and regulatory issues in building and restore or new installment of nuclear reactors. Environmental and health risks associated with radioactive material, especially long-term waste management, concerns regarding nuclear safety and liability, the maintenance of research and development capacity in the nuclear sector, including the availability of the required expertise and skilled workforce and public perception and acceptability of nuclear technologies.
    These challenges have become more discouraging following the recent crisis at the Fukushima nuclear plant in Japan, resulting from the 2011 earthquakes and tsunami, as well as due to heightened concerns regarding nuclear safety around the world. Recently, the CANADIAN Nuclear Safety Commission has ordered all operators of nuclear plants to conduct a general inspection of their facilities, with special attention to external hazards. Several other countries, especially in Europe, are also reviewing safety aspects of their nuclear facilities. These and other issues will present challenges for the worldwide nuclear industries in the future as well.

    ReplyDelete
  8. 6. Nuclear power is the fourth-largest source of electricity in India after thermal, hydroelectric and renewable sources of electricity. As of 2013, India has 21 nuclear reactors in operation in 7 nuclear power plants, having an installed capacity of 5780 MW and producing a total of 30,292.91 GWh of electricity while 6 more reactors are under construction and are expected to generate an additional 4,300 MW.
    IN THE WORLD - ?

    ReplyDelete
  9. 12. Nuclear energy though a clean energy source in terms of its carbon footprint, has got many disadvantages which make it unfit to replace the conventional energy sources completely. Comment (200 words
    Indeed nuclear energy is capable of producing greater energy than any other resource but in case of an accident, the consequences will be very great. Certain examples of nuclear energy programs gone wrong would be the Chernobyl disaster (1986), Fukushima nuclear disaster (2011), Kyshtym Nuclear Disaster (1957), etc.
    The disadvantages of nuclear energy are:
    1. Economic: The cost of setting up a nuclear reactor is very high and not always economically viable for developing countries. Moreover, the availability of fuel (uranium) is also very meager and non-renewable.
    2. Social: Consequences of radiation exposure affect generations of people and there is still no medical cure.
    3. Technological: Even though all the latest technologies are used in constructing the nuclear power plants, the risk of an accident is still present. Unlike other power plants, a nuclear disaster will have more devastating consequences.
    4. Legal: Nuclear technologies and establishments will always be under a risk from terrorists who might want to steal the technology for their own use. Or it might even be used by nations themselves to manufacture weapons clandestinely. It can increase the risk of a global nuclear war.
    5. Environmental: The disposal of nuclear waste is a huge problem since they do not ever completely decompose completely. Thermal heat produced from the plant may damage the environment.

    ReplyDelete
  10. 1. The Convention on supplementary compensation is an international nuclear liability regime that is governed by the International Atomic Energy Agency. The convention signed in 1997 places absolute liability on the operators of the nuclear plant and also mandates the creation of a common insurance pool , from which signatory countries (of a nuclear deal), can raise funds for compensation in case of a nuclear disaster. This is a convention that protects the interests of suppliers of nuclear plant parts and places the onus on the operators of the plant to compensate victims of nuclear accidents. Right up until the Bhopal Gas Tragedy did not have any liability and compensation laws in place with regard to nuclear accidents. The Bhopal Gas Tragedy initiated the process of development of a law which would hold the supplier responsible for the consequences of nuclear accidents. In 2010, the Indian Parliament passed the Civil Liability for Nuclear Damage Act, the provisions of which were heavily influenced by the Deepwater Horizon Oil Spill of the Mexican shore. Clause 17 of the act provides that the operator of a nuclear plant has the right to sue the supplier for damages if the nuclear accident is found to have been caused by a manufacturing defect. However the major suppliers, such as GE-Westinghouse, French Areva, Mitsubishi, Russia's Rosatom etc have derided India's stand and have urged India a nuclear liability law that conforms to the Convention on Supplementary Compensation. This was one of the primary reasons as to why the US-India Civil Nuclear Deal saw very little progress , as the USA was unwilling for its companies to take responsibility for nuclear accidents and encouraged India to conform with the CSC. A few months after India passed its Civil Liability Act, the nuclear disaster at Fukushima's Daiichi plant took place, the primary cause for which was a faulty and negligent manufacture of the components. Since Japan did not have a nuclear liability law, Japan's taxpayers were imposed with the double cost of the health hazards and loss from the nuclear accident, and increased taxes to compensate for the incident. In such a scenario, India's stand appeared to a sensible and appropriate , one that would protect its citizens from such dangers. It must also be mentioned here , that France, Russia and Japan have progressed on their nuclear deals with India despite the fact that India is not a signatory to the CSC. Although India has signed the CSC presently, it has not yet been ratified. The consequences of the CSC, both positive and negative are yet to be seen.

    ReplyDelete
  11. 5,6,8. Nuclear power is the fourth largest source of power in India, after thermal, hydroelectric and renewable sources. India has 21 nuclear reactors in 7 different nuclear plants located across the country. The total installed capacity of nuclear energy in the country is 5780 MW which produces a total of more 30000 Giga watt hours of energy. Six more reactors are under construction which could provide additional capacity of 4300 MW. The seven nuclear power plants are as follows :
    a) Kaiga, Karnataka with an installed capacity of 880 MW
    b) Kakrapar, Vyara, Gujarat with an installed capacity of 440 MW
    c) Madras Atomic Power Station, Kalpakkam, Tamil Nadu with capacity of 440 MW
    d) Narora Power Station, Bulanshahar District, Uttar Pradesh with a capacity of 440 MW
    e) Rajasthan Power Station, Chittorgarh, Rawat Bhata, Rajasthan with a capacity of 1180 MW
    f) Tarapur, Maharashtra, with an installed capacity of 1440 MW
    g) Kudankulam, Tamil Nadu with an installed capacity of 1000 MW
    While India has a total installed capacity of approximately 5700 MW , the total installed capacity of all the countries with nuclear capacity, is over 380,0000 MWe with more than 400 nuclear reactors operating in more than 30 countries. To add some perspective, the total installed nuclear capacity of the United States is more than 90,000 MW and although close to 33 reactors have been permanently shut down, the United States still remains the largest supplier of nuclear energy and generated more than 33% of the world's total nuclear energy as of 2013.
    India , remains the 9th largest producer of nuclear power in terms of number of operational nuclear units. Even though the amount of nuclear energy produced may seem large in absolute terms, in terms of its contribution to electricity production, it contributes a mere 2.8%.
    The development and advancement of nuclear energy for peaceful purposes cannot be over-emphasis. With a burgeoning population, and an impending demographic dividend for India, India's energy needs will only rise exponentially over time. Given that the quantum of non-renewable fossil fuels are rapidly depleting, the country and the world at large have to adopt new means to generate electricity if it is to sustain its growing population in the years to come. Renewable energy is the only alternative that will remain when non-renewable sources run out, and in addition it is kinder on the environment. With environmental and developmental concerns tantamount for a developing nation like India, it becomes all the more crucial to develop alternate sources of energy , which are sustainable in the long run and relatively environmentally friendly.

    ReplyDelete
  12. Convention on supplier compensation is a convention that provides for framework for providing compensation in case of a nuclear accident in a nuclear plant or while transportation with the basic condition that the use of such plant was for peaceful purposes. It basically lays down that in case a member state is affected and it cannot take care of damages then the members of the convention are obliged to support and extend financial support.

    ReplyDelete
  13. To understand the difference between Signing and ratification of a treaty we need to refer the Vienna convention on the law of treaties.
    Under Article 12 it is provided that when can a signature be considered as a consent of the member state to be bound by treaty or convention. It lays down that if the representative of the state has given the consent to be bound by a treaty by expressing it through signature then it will be binding on the state if:
    (a) the treaty which is being signed specifically provides that signature to the same will be considered enough to bind the state.
    b) if the parties to the treaty has agreed that the signature will be enough to bind the parties, then the effect of signature is that the state is bound by that treaty.
    It is though provided that in case the signature of the representative has to be backed by the intention of the state and is later passed by the state then it will be considered as full signature.
    Article 14 provides when the consent to be bound by treaty is expressed by ratification, acceptance or approval.if
    1) The treaty provides for such consent to be expressed by means of ratification;
    2)it is established that the negotiating states agreed that the ratification should be required;
    3) The representative of the State has signed the treaty subject to ratification.
    The difference between signing and ratification is only there in the procedure ,that is adopted by the state. Both will have the same effect depending on the procedure agreed by the state.

    ReplyDelete
  14. 1. What is Convention on Supplementary Compensation (CSC)?
    Ans. The importance of the measures provided in the Vienna Convention on Civil Liability for Nuclear Damage and the Paris Convention on Third Party Liability in the Field of Nuclear Energy as well as in national legislation on compensation for nuclear damage consistent with the principles of these Conventions.
    DESIROUS of establishing a worldwide liability regime to supplement and enhance these measures with a view to increasing the amount of compensation for nuclear damage. RECOGNIZING further that such a worldwide liability regime would encourage regional and global co-operation to promote a higher level of nuclear safety in accordance with the principles of international partnership and solidarity.

    ReplyDelete
  15. 1. What is Convention on Supplementary Compensation (CSC)?
    Ans. The importance of the measures provided in the Vienna Convention on Civil Liability for Nuclear Damage and the Paris Convention on Third Party Liability in the Field of Nuclear Energy as well as in national legislation on compensation for nuclear damage consistent with the principles of these Conventions.
    DESIROUS of establishing a worldwide liability regime to supplement and enhance these measures with a view to increasing the amount of compensation for nuclear damage. RECOGNIZING further that such a worldwide liability regime would encourage regional and global co-operation to promote a higher level of nuclear safety in accordance with the principles of international partnership and solidarity.

    ReplyDelete