India to Set Up Nuclear Liability Fund to Attract Private Investment

India is planning a nuclear liability fund to cover accident compensation exceeding 15 billion rupees ($169 million), aiming to reduce risk concerns for private and foreign suppliers, according to government sources. The fund would supplement the operator’s capped liability, replacing the current ad hoc payout system. The proposed statutory fund, part of a new atomic energy bill, is designed to strengthen the government’s ability to compensate victims in case of a major nuclear accident. Officials said the move aligns India’s liability framework with global norms, potentially unlocking stalled private and foreign investment in the nuclear sector. The government plans to expand nuclear power capacity 12-fold by 2047 and is easing rules to end the state monopoly, encouraging private and foreign participation. Major Indian conglomerates such as Tata Power, Adani Power, and Reliance Industries are reportedly preparing investment plans in response. The new legislation, expected in parliament’s winter session in December, would replace the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. It aims to remove the unlimited liability provision for suppliers and provide a clear legal mechanism for financing compensation beyond the operator’s liability cap, improving confidence among foreign firms.