India To Establish Nuclear Liability Fund To Attract Global Suppliers

(MENAFN- KNN India) New Delhi, Sep 25 (KNN) India is preparing to set up a nuclear liability fund to address long-standing concerns of global suppliers over risk-sharing in case of a nuclear accident.

The proposed fund will cover compensation claims beyond the operator's liability cap of Rs 1,500 crore (around USD 169 million).

This initiative aims to bring greater confidence to international equipment providers and strengthen India's nuclear energy expansion plans.

At present, India's Civil Liability for Nuclear Damage Act places the primary responsibility of compensation on plant operators, up to a limit of Rs 1,500 crore. Beyond this, the government assumes liability.

However, in the absence of a clear financial mechanism to handle larger claims, foreign suppliers-particularly from the US, France, and Japan-have remained cautious about entering India's nuclear market due to fears of open-ended risks.

The proposed liability fund is expected to be financed through a mix of government allocations and possible industry contributions.

It will serve as a structured pool of resources to ensure quick and assured compensation for victims in the event of an accident, while also limiting suppliers' exposure.

Officials believe this step will create a predictable environment that is critical for attracting foreign technology partners and investors.

India has ambitious plans to expand its nuclear capacity as part of its broader clean energy transition. Currently, nuclear power contributes less than 3% of the country's electricity supply.

By creating a more secure liability framework, the government hopes to accelerate stalled projects and reduce reliance on fossil fuels, aligning with its target of achieving net-zero emissions by 2070.

The details of the fund-including its size, funding model, and governance-are expected to be finalised in consultation with regulators, state-run entities like NPCIL, and foreign suppliers. An official announcement is likely in the coming months.

(KNN Bureau)

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