The government has decided to form a nuclear insurance pool having a number of stakeholders, to meet the need of a financial cover in case of a mishap.

The Department of Atomic Energy (DAE) is following up the matter with the Ministry of Finance, after the insurance companies, including General Insurance, expressed its inability to provide financial cover for the nuclear plants, considering the huge monetary requirement.

The volume of the pool will depend on how much the government lends for every project.

Under the liability law, a compensation of upto Rs 500 crore will have to be paid in case of a mishap involving a nuclear plant. India has 20 nuclear plants at present, and the number is expected to grow as the industry expands.

The move indicates the urgency to insure reactors, especially Units-III and IV of the Kudankulam Nuclear Power Plant (KKNPP), under the Civil Liability Nuclear Damage Act (CLND), 2010.