Team siliconindia

• India plans to create a nuclear liability fund to handle accident compensation beyond Rs 1,500 crore.
• The move is aimed at unlocking private and foreign investment in the nuclear energy sector.
• A new bill is expected in the upcoming Parliament session to modernise outdated laws.

India is preparing to set up a dedicated nuclear liability fund to cover accident compensation exceeding Rs 1,500 crore ($169 million). This initiative aims to reduce risk concerns for private and international players in the nuclear energy sector, two government officials said.

The proposed fund will be a part of a new atomic energy bill that seeks to replace the outdated Atomic Energy Act of 1962 and amend the Civil Liability for Nuclear Damage Act of 2010. Unlike the current ad hoc system, the new fund would legally guarantee financial coverage beyond the operator’s liability cap, aligning India's nuclear framework with global standards.

“The idea is to strengthen the government’s ability to compensate victims while encouraging investments”, said one official familiar with the draft plan.

India is aiming for a 12-fold increase in nuclear power capacity by 2047 and wants to bring in private firms and global technology providers to help achieve this. Conglomerates like Tata Power, Adani Power, and Reliance Industries are reportedly exploring opportunities in the nuclear space.

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The current liability law holds suppliers potentially responsible for unlimited damages, which has kept many foreign companies cautious. The proposed changes would cap supplier risk and embed the nuclear insurance pool, set up in 2015, into law through a more structured compensation mechanism.

The bill is expected to be tabled during the winter session of Parliament in December.