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LATEST NEWS UPDATES | Nuke insurance pool set up

Nuke insurance pool set up

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published Published on Jun 14, 2015   modified Modified on Jun 14, 2015
-The Telegraph

New Delhi: A clutch of Indian public and private sector companies yesterday set up a nuclear insurance pool of Rs 1,500 crore needed for any compensation payments in the event of a nuclear accident, senior atomic energy officials said today.

The nuclear insurance pool, with a contribution from a UK-based nuclear insurer, is expected to address concerns among international and domestic suppliers that India's civil nuclear liability law gives nuclear reactor operators a right to recourse from suppliers in the event of an accident.

Senior officials with the atomic energy department and the Nuclear Power Corporation said the absence of the pool appeared to have kept back companies from even responding to tenders issued by the NPC for its proposed two 700MW nuclear power reactors in Gorakhpur, Haryana.

Under India's civil nuclear liability regime, this insurance pool will cover the liability of both the NPC, the public sector company that builds and operates commercial nuclear power reactors, and nuclear suppliers that could be domestic or foreign companies.

"Gorakhpur was the first real test, but some companies were not willing to supply even spare parts for our existing reactors," said R.K. Sinha, atomic energy secretary, adding that the nuclear insurance pool would allay concerns about liability among the suppliers.

Several public and private sector companies, including Larsen & Toubro, Godrej and Bharat Heavy Electricals Limited, are among domestic suppliers providing key non-nuclear components and equipment that go into building nuclear power reactors.

"This insurance pool will help accelerate our nuclear power programme, not just for the Gorakhpur project but future projects too," said Jitender Singh, Union minister of state for atomic energy and space.

Foreign and domestic suppliers, who have viewed the Civil Liability for Nuclear Damage Act 2010 as unfair and without parallel in any other country or industry, had been concerned that a section of the law allows nuclear operators - the NPC, in India - a right to recourse - claim compensation from suppliers in the event of a nuclear accident.

India currently has 21 commercial nuclear power reactors with an installed capacity of 5,780MW of electricity, but the NPC is already constructing four 700MW reactors - two at Kakrapar, Gujarat, and two at Rawatbhata, Rajasthan.

While the Kakrapar units are expected to be ready for operation in 2017-18, the reactors in Rawatbhata reactors will be ready in 2018-19. All these units are Indian-made pressurised heavy water reactors, a senior atomic energy official.

In January, India and the US had announced that they had resolved differences over the contentious liability issues through this insurance pool mechanism.

The Telegraph, 14 June, 2015, http://www.telegraphindia.com/1150614/jsp/nation/story_25694.jsp#.VX0oVFL38xY


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