India project operator Satluj Jal Vidyut Nigam Ltd. (SJVN) said it received an insurance payment of 3.07 billion rupees (US$72.1 million) to cover losses due to 2005 flooding at the 1,500-MW Nathpa Jhakri hydroelectric project on the Satluj River in Himachal Pradesh State.
On September 4-5, 2005, the Nathpa Jhakri powerhouse was flooded, stopping generation. One unit was temporarily reinstated and generation restarted in October that year. (HNN 9/11/07)
National Insurance Co. initially released a payment of 510 million rupees (US$12 million) in March 2006 to ease cash flow for early restoration of the plant.
The 3.07 billion rupee check to cover business interruptions and material damages was delivered by National Insurance Co. May 21.
The six-unit plant was insured for 2005-2006 through Industrial All Risk Policy with National Insurance as leader and co-insurers including New India Assurance Co., United India Insurance Co., Oriental Insurance Co., Reliance General India Insurance Co., Bajaj Allianz General Insurance Co., ICICI Lombard General Insurance Co., and Chollamanadalam General Insurance Co.
SJVN said the 711.9 million rupees (US$16.7 million) for material damage and the 2.36 billion rupees (US$55.6 million) for business interruption losses is a record in insurance history and in the power sector.