MUMBAI: State government undertaking Sikkim Urja’s Rs 11,400 crore claim for the destroyed 1,200MW Teesta III hydropower project may become a landmark in climate risk management. A decision on the claim, which is the largest in the category and one that reinsurers are reluctant to cover, is expected soon.
Reinsurers have capped their liability at Rs 500 crore for Glacial Lake Outburst Floods (GLOF) as these climate change eventsare considered too significant for conventional covers.
