Foreign suppliers of nuclear power plants such as GE, Areva and Westinghouse will not be exempt from liability if an accident occurs, under the insurance structure proposed by the government for such plants. However, the direction in which negotiations are heading might leave domestic suppliers such as L&T free from such a liability.
According to Sekhar Basu, Chairman, Atomic Energy Commission, foreign suppliers will need to take a cover of ₹1,500 crore from their insurance provider. This amount is the same as that the Nuclear Power Corporation of India Ltd is to take.
However, NPCIL can access the India Nuclear Insurance Pool, which will not be available to foreign suppliers. The Civil Liability for Nuclear Damage Act provides the right of recourse to NPCIL and allows it to sue suppliers in case of an accident.
“For Indian suppliers, the reactor and parts they provide will be to our specifications and designs. The safety of the design will be our responsibility. We will have to work the contract such that the domestic supplier is not affected,” Basu told reporters on the sidelines of the 7th Nuclear Energy Conclave, organised by the India Energy Forum.
“The right to recourse is the only remaining hindrance to resolve the insurance issue,” he added. “If we put down in writing what our view is in the contract, the issue can be resolved.”
Asked if foreign insurers will be allowed to check the reactors of foreign suppliers, Basu said: “We have no issues if they do. The annual cost of such an insurance will be ₹60-70 crore, which is negligible for such projects.”
Meanwhile, Jitendra Singh, Minister of State (Independent Charge) for Science and Technology, said the Indian Nuclear Insurance Pool will cover operators’ liability under the CLND Act and adequately address the liability related concerns of national as well as international equipment suppliers.