The cost of units 3 and 4 of the Russian-built Kudankulam Nuclear Power Plant (KNPP) at Rs.39,747 crore has shot up to more than twice the cost of units 1 and 2 owing to the burden of insurance under India's nuclear liability law.The approved cost of KNPP units 1 and 2 was Rs.17,270 crore while the approved cost of unit 3 and 4 was Rs.39,747, Minister of State for Department of Atomic Energy (DAE) Jitendra Singh said Wednesday in a written reply in the Lok Sabha.Russia has expressed concerns over the operator's responsibility in the law, and has said the cost of the supplied equipment would increase significantly if the suppliers were made accountable. Its position was that the law, which makes the suppliers financially liable in the event of an accident, was unnecessary in its civil nuclear partnership with India.
Unlike Kudankulam 3 and 4, the first and second units will function independent of the liability law.The DAE has asked the finance ministry to form a nuclear insurance pool after the state-run General Insurance Corp. was unable to insure the two new Kudankulam units.Former secretary of the DAE Anil Kakodkar has recently said lack of clarity on India's nuclear damage liability law has held up faster development of its civil nuclear programme.