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The settlement was the result of a thorough Water Board investigation into alleged violations stemming from the plant's use of water from the Pacific Ocean in its cooling system.
The Chernobyl zone saw its tourism increase two-fold after the lauded television miniseries of 2019 and officials hope that level of interest will continue, or grow, once the global pandemic has receded.
Japan has argued the water release is necessary to press ahead with the complex decommissioning of the plant after it was crippled by a 2011 earthquake and tsunami.
Nearly nine years after the accident, the decommissioning of the plant, where three reactors melted, remains largely an uncertainty.
The mayor hit out at TEPCO, which also operated the crippled Fukushima nuclear plant -- site of the worst nuclear accident since Chernobyl -- when an earthquake and tsunami struck in 2011.
India has not chosen the new site yet, which could be controversial as the country has seen vehement protests against new nuclear sites.