Consider the following statements with respect to the proposed "Nuclear Liability Fund":

  1. The source of money for this fund will be collected from nuclear operators
  2. Fund money will be credited to the Contingency Fund of India.
  3. Centre will require parliament’s approval before making payment out of fund.

Which of the above statements is/are correct?

Answer: [C] Only 1 & 3

Second statement is incorrect because the payments towards the fund will be credited to the Consolidated Fund of India and then transferred to the Public Account. The operators will have to pay a levy of 5-10 paise per unit of electricity sold to the fund, which will be the biggest addition to the pool of compensation available for nuclear damages. The additional levy will last till the amount reaches 2000 crore. The operator’s liability is capped at 1,500 crore under the 2010 Civil Liability for Nuclear Damage Act.
The payments made by an operator towards the fund will be credited to the Consolidated Fund of India and then transferred to the Public Account under the 'MH 8235 General and Other Reserve Fund'. The Centre will be required to take Parliament's approval before making payments out of the fund after due assessment and operators delaying quarterly payments to the fund will pay interest to the tune of 18% on daily basis, as per the rules. {ET}
 

This question is a part of GKToday's Integrated IAS General Studies Module