Nuclear deal with U.S. advances in India

NEW DELHI, Aug. 30 (UPI) -- A crucial piece of India's nuclear pact with the United States cleared Parliament Monday.

Some analysts, however, said changes in the bill covering liability may undermine rather than strengthen bilateral ties, The New York Times reported.

The nuclear issue set off weeks of bitter debate, stirring Indian nationalism and suspicion of foreign interests while evoking memories of the 1984 Union Carbide disaster at Bhopal that killed thousands.

After its 1974 nuclear test, India refused to sign the non-proliferation treaty, and the U.S. imposed a three-decade moratorium on nuclear trade. But the deal announced by Prime Minister Manmohan Singh and then-President George W. Bush in 2005 cleared a path for India to join the nuclear club while opening a $150 billion Indian market to foreign energy companies once blocked by the moratorium.

Existing international conventions put liability for nuclear accidents solely on the reactor operator while immunizing suppliers. But the new Indian law makes suppliers potentially liable, too. Indian industry has already voiced reservations while analysts warn that foreign energy companies may now decide not to participate.