Areva S.A. (ARVCY) is "in the middle of full-scale discussions" to build nuclear power plants in India , said Arthur De Montalembert, chairman of its local unit, despite its U.S. rivals going slow on their Indian plans due to concerns over a nuclear liability law.

Areva's talks with Nuclear Power Corp. of India Ltd. may give an edge to the French state-controlled nuclear equipment supplier over its U.S. rivals, GE Hitachi Nuclear Energy and Westinghouse Electric Co., whose plans were delayed after the Indian government adopted the law that makes both equipment suppliers and plant operators liable to accident compensation claims.

Equipment suppliers, which are eyeing India 's multi-billion-dollar nuclear power market, have sought changes in the law. The government is unlikely to heed to their requests, but may address some of their concerns when they introduce regulations to implement the law later this year.

Areva wants to initially build two of the six 1,650 megawatt reactors it plans at Jaitapur in western India, and has agreements with Nuclear Power Corp., India's state-run monopoly builder and operator of nuclear power plants, for the sale of reactors, fuel and services worth as much as EUR7 billion ($9.41 billion).

However, the project is facing protests due to safety concerns post the disaster at Japan 's Fukushima nuclear complex earlier this year and issues concerning acquisition of land.

Speaking to Dow Jones Newswires, Montalembert said Areva expects "the implementation rules of the Indian (liability) law to allow for an acceptable practical solution that will meet all requirements."

On the U.S. demand that India ratify its nuclear liability rules with the Convention on Supplementary Compensation for Nuclear Damage, Montalembert said the basic principles of the global convention were satisfactory. "However, it is noteworthy that, even 14 years following its adoption ... the CSC [Convention on Supplementary Compensation] is not yet in force, only four countries having ratified it so far."

The U.S. is pushing India for a review of the liability rules by the International Atomic Energy Agency that may further extend the deadlock over a civilian nuclear cooperation deal between the two countries.

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