The bill, which caps the liability of foreign firms at $320 million in the case of an industrial accident, is expected to be presented in parliament as early as next week for final passage, said Prithviraj Chavan, India's junior science and technology minister.

India needed this domestic law to get high-capacity nuclear reactors from developed countries to meet its energy needs, Chavan told reporters.

"Uranium-based nuclear energy is vital for us," he said.

Nearly 40 percent of India's households don't have electricity.

Some private firms, especially those from the US, have been reluctant to set up nuclear power plants in India without a law that would limit their liability.

But such a cap has stirred strong opposition in India, where victims of the 1984 gas leak at a Union Carbide plant in Bhopal are still seeking increased compensation for their suffering. That leak, the world's worst industrial disaster, killed 15,000 people.

The international community barred India from the trade in civilian nuclear technology while the country ran a covert program to develop nuclear weapons.

In 2008, India emerged from its nuclear isolation after it signed a landmark civil nuclear cooperation agreement with the United States. The 45-nation Nuclear Suppliers Group then lifted a three-decade global ban on nuclear trade with India.

The energy starved country hopes to harness its new acceptance to build nuclear power plants.

US-based firms GE-Hitachi and Westinghouse Electric, a subsidiary of Japan's Toshiba Corp, have been waiting for the liability bill to pass before they would enter India's nuclear energy sector.

Meanwhile, Russian and French nuclear companies linked to their governments have raced ahead and have been awarded contracts.

India's Cabinet on Friday also opted to triple the wages of members of parliament to about $1,000 a month and double their expenses, a government source said.

The move came after a campaign by parliamentarians, many of whom were angry Friday at what they saw as an "insulting" hike.

They voiced their frustration in the Parliament, forcing several adjournments, but failed to secure a bigger rise.

As well as their salary, lawmakers are entitled to a number of perks, such as free air and train travel for them and their spouse, free housing and other domestic services.

Each member will now receive 50,000 rupees per month in salary and 40,000 rupees in expenses, from 16,000 rupees and 20,000 rupees previously.

India is currently struggling with near 10-percent inflation and the central bank is keen to contain widespread wage hikes across the economy that could accelerate the trend of rising consumer prices.