Tokyo Power Faces Insolvency Risk in Wake of Accident – NYTimes.com.
“To appease public anger over the disaster, the government has vowed to hold Tokyo Electric fully liable for the compensation claims that are likely to roll in from farmers, fishermen and others whose livelihoods have been disrupted in the crisis.
A government plan drawn up last month places no limit on the company’s liabilities, even though Japanese law would allow for such a cap following natural disasters. But the plan, which must still be approved by a divided Parliament, also calls for a fund that would use taxpayer money to help Tokyo Electric compensate victims and continue to provide Tokyo with power, while avoiding insolvency. Under the plan, the company will eventually pay back the fund in full.
The problem, analysts say, is that it is virtually impossible to know how large those claims could eventually be — and whether the government would have the means and commitment to cover them.”
Of interest to those who have followed the nuclear liability issue in India. If this is true for Japan, what will happen in a similar situation in India?
