The Indian government is set to establish a ₹1,500 crore nuclear liability fund to cover compensation for accidents exceeding the ₹1,500 crore cap on plant operators, as part of sweeping reforms to attract private and foreign investment in the atomic energy sector. Proposed in a forthcoming atomic energy bill, the statutory fund would supplement operators’ liability, shifting from the current ad hoc system to a structured mechanism aligned with global norms, according to two government sources cited by Reuters and Business Standard. For energy policymakers, investors, and industry stakeholders searching India nuclear liability fund 1500 crore, atomic energy bill reforms 2025, or private investment nuclear sector, this initiative—aiming to end the state monopoly and remove supplier liability provisions—could unlock stalled projects worth billions, supporting India’s goal to expand nuclear capacity 12-fold to 100 GW by 2047 from 7.4 GW today. As the Civil Liability for Nuclear Damage (CLNDA) Act of 2010 has deterred global suppliers like GE and Westinghouse, the fund represents a pragmatic step toward risk-sharing, potentially catalyzing uranium mining and power generation partnerships.
The plan, still under wraps, builds on the 2015 nuclear insurance pool and seeks to harmonize with international conventions like the CSC.
The Proposed Fund: Covering Gaps in Operator Liability
Under the CLNDA Act, operators bear strict liability up to ₹1,500 crore per incident, with the government stepping in for excesses up to 300 million SDRs (~₹3,700 crore). The new fund would formalize this, providing a dedicated pool for claims beyond the operator’s cap, easing supplier fears of unlimited recourse.
- Fund Size: ₹1,500 crore initial corpus, potentially scaled via levies on operators.
- Mechanism: Statutory pool supplementing insurance, replacing ad hoc government payouts.
- Supplier Relief: Removes unlimited liability clause, aligning with CSC norms for foreign tech.
Sources indicate the bill will replace the 1962 Atomic Energy Act, allowing private stakes in plants and mining.
| Liability Layer | Current Cap | Proposed Fund Role | Global Alignment |
|---|---|---|---|
| Operator | ₹1,500 Cr | Primary Liability | Strict, No-Fault |
| Government | Up to 300M SDRs (~₹3,700 Cr) | Gap Filler | CSC Supplementary |
| Fund | – | Excess Coverage | Structured Pool |
Strategic Goals: Unlocking Private Investment for 100 GW Target
India’s nuclear sector, dominated by state-owned NPCIL, aims for 100 GW by 2047—up from 7.4 GW—to meet 25% clean energy needs. The reforms target:
- Private Entry: Allow minority stakes in plants and uranium mining.
- Foreign Tech: Attract suppliers from US, France by capping liability.
- Investment Unlock: End 2010 Act’s chill, stalled by Bhopal-inspired supplier recourse.
ICRA’s Vikram V called it “positive for climate goals,” but urged clarity on timelines and tariffs.
Challenges: Balancing Safety and Growth
Critics worry about diluted safety:
- Liability Dilution: Unlimited supplier cap removal could reduce accountability.
- Implementation: Bill passage needs parliamentary consensus; insurance pool (Rs 1,500 Cr since 2015) must integrate.
- Global Norms: Aligns with CSC but exceeds Vienna Convention’s operator-only focus.
Conclusion: A Fund for Nuclear Revival
India’s ₹1,500 crore nuclear liability fund could catalyze a 12-fold capacity boom, drawing private capital while safeguarding victims. As the bill advances, it balances growth with accountability. For energy investors, it’s a green signal—will reforms power 100 GW, or stall on scrutiny? The reactor awaits ignition. reuters
