News Brief | February 2016
Govt approves setting up Rs.2,000 cr Nuclear Liability Fund
India has cleared the decks for setting up a Nuclear Liability Fund with a corpus of Rs.2,000 crore that will allow the government to pitch in if damages resulting from a nuclear accident in the country exceed the limit specified for nuclear plant operators under the law. The operators will have to pay a levy of 5-10 paise per unit of electricity sold to the fund, which will be the biggest addition to the pool of compensation available for nuclear damages.
The operator´s liability is capped at Rs.1,500 crore under the 2010 Civil Liability for Nuclear Damage Act.
The Prime Minister´s Office cleared the move last month, following which the Department of Atomic Energy notified the Nuclear Liability Fund Rules, 2015 on December 8. A date for the levy to commence will soon be notified, said an official. According to the rules, the fund will comprise the levy collected from operators of nuclear installations. The operators will have to pay to the fund a levy at the rate of 5 paise or a levy at such rate between 5 and 10 paise for every unit of electricity sold to the customers, says the notification, a copy of which has been seen by ET.