By Bappa Majumdar
NEW DELHI, April 28 (Reuters) - India's government is planning to introduce a delayed nuclear liability bill in parliament, officials said on Wednesday, a move that will allow entry of U.S. firms into the country's $150 billion sector.
A 2008 civilian nuclear deal with the United States ended India's nuclear isolation since its 1974 atomic test, and gave it access to U.S. technology and fuel.
But endorsement of the Civil Liability for Nuclear Damage Bill is imperative for private U.S. firms reluctant to do business in India without legislation that underwrites their compensation liability in the case of industrial accidents.
In March the government was forced to shelve plans to introduce the bill in parliament following protests by the opposition, who say the bill favours private players.
But after Tuesday's victory in a confidence vote moved by the main opposition parties in parliament, the Congress appeared to be moving forward on key pending bills, including on pension reform and entry of foreign universities.
"The (nuclear liability) bill will be enacted into a law after completing all required procedures," India's Science and Technology Minister Prithviraj Chavan, said in parliament.
"The act will enter into force after notification by the government," he said.
Chavan did not say when the bill would be introduced. The current session of parliament ends May 7.
Congress party officials told Reuters that after Prime Minister Manmohan Singh returned from a regional summit in Bhutan this week, a decision would be made on when to introduce the bill.
French and Russian nuclear firms plan to set up in India, and New Delhi has offered to tender construction of two plants, a business opportunity worth $10 billion, to U.S.-based firms GE-Hitachi and Westinghouse Electric, a subsidiary of Japan's Toshiba Corp.
The main opposition Bharatiya Janata Party opposes the bill on grounds that it seeks to put a maximum liability of about $450 million on the state-run reactor operator without placing any compensation burden on private suppliers and contractors.
Although the legislation has been cleared by the cabinet, the government needs the support of the BJP to ratify the bill in the upper house, where it along with its allies has a strong presence.
The government has said it is willing to address opposition concerns and send the bill to a standing committee.
"The opposition have articulated their concern, but obviously legislation has to be moved, and the bill has to be introduced in parliament," Manish Tewari, a Congress leader told Reuters. (Editing by Rina Chandran)