15.6.15

Nuclear Insurance Pool

The government has launched an insurance pool to the tune of Rs.1,500 crore which is mandatory under the Civil Liability for Nuclear Damage Act (CLND) in a bid to offset financial burden of foreign nuclear suppliers. This was announced by Minister of State in the Department of Atomic Energy Jitendra Singh, noting that several projects such as the long-pending Gorakhpur Haryana Anu Vidyut Pariyojna (GHAVP) that were held up in its absence, are now expected to move forward after setting up of the pool.
Clauses in the CLND Act, which give the operator the Right to Recourse and allow it to sue the suppliers in case of any accident were seen as being a major hindrance to the growth of the nuclear industry .
These concerns led to to the formation of the Indian nuclear insurance pool by the Centre.

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