Civil nuclear projects in the country would be subject to Indian laws including on issues of civil liability, National Security Adviser Shivshankar Menon said today dismissing reports of attempts to dilute the liability clause in contracts proposed with US firms.

"I was surprised yesterday to see stories that somehow Indian law will not be applicable to nuclear projects in India. Civil nuclear projects in Indian would naturally be subject to Indian laws including civil liability," he said in his address at a think tank in Delhi.

Menon's views assume significance in the context of a huge controversy over media reports that the government was trying to dilute the nuclear liability clause in deals with American nuclear firms for buying reactors during Prime Minister Manmohan Singh's Washington visit next week.