Stepping stone : On nuclear policy, the SHANTI Bill

UPSC Syllabus Topic: GS Paper 3 –Infrastructure ( Energy).

Introduction

Nuclear power remains a small but critical part of India’s energy mix, contributing around 3% of electricity generation. To meet long-term clean energy and climate goals, India plans a major expansion of nuclear capacity. The SHANTI Billmarks a structural shift in nuclear policy by opening the sector to private participation, revising liability rules, and restructuring regulation, while keeping sensitive nuclear activities under state control.

Current status of India’s nuclear power sector

1. Present contribution and installed capacity

• Nuclear power contributes about 3% of India’s electricity and around 1.5% of installed power capacity.
• India currently operates 22 reactors with an installed capacity of about 6.8–8.8 GW, dominated by Pressurised Heavy Water Reactors (PHWRs).

2. Existing legal and institutional framework

• The sector has been governed by the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010.
• Only public entities, the Nuclear Power Corporation of India, were allowed to own and operate nuclear plants.

3. Long-term expansion targets and missions

• India aims to scale nuclear capacity to 100 GW by 2047 to support grid stability and decarbonisation.
• This includes a ₹20,000 crore mission for Small Modular Reactors and plans for indigenous Bharat Small Modular Reactors.

What is the SHANTI Bill?

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, was introduced in the Lok Sabha. The Bill seeks to reform India’s nuclear energy framework to support the government’s goal of achieving 100 GW of nuclear power capacity by 2047.

Key Provisions of the SHANTI Bill

1. Repeal of existing nuclear laws

• The Bill proposes the repeal of the Atomic Energy Act, 1962, which currently governs nuclear activities in India.
• It also seeks to repeal the Civil Liability for Nuclear Damage Act, 2010, which regulates liability in case of nuclear accidents.

2. New unified legal framework: The Bill establishes a single framework to govern the production, use, and regulation of nuclear energy and ionising radiation in India.
3. Entry of the private sector

• For the first time, private companies, joint ventures, and other eligible entities will be allowed to apply for licences to set up and operate nuclear power facilities.
• Private entities will also be permitted to transport nuclear fuel, subject to regulatory approval.
• This marks a major departure from the public sector monopoly in civil nuclear power.

4. Activities reserved for the government: Sensitive activities such as uranium enrichment, spent nuclear fuel management, and heavy water production will remain under the exclusive control of the Union government.
5. Licensing and regulatory oversight

• All nuclear and radiation-related activities will require a licence from the Central government.
• Operators must obtain safety authorisation from the Atomic Energy Regulatory Board (AERB).
• The Bill grants statutory status to the AERB and clearly defines its regulatory powers.

6. Strengthening nuclear safety regulation

• The AERB is empowered to regulate radiation exposure, waste management, safety inspections, and emergency preparedness.
• The Centre can take control of radioactive substances or radiation-generating equipment in situations involving radiation hazards.
• The cost of safe disposal may be recovered from the authorised entity.

7. Liability in case of nuclear accidents

• The operator of a nuclear installation will be primarily liable for nuclear damage.
• Exceptions apply in cases of grave natural disasters, armed conflict, war, civil unrest, or terrorism.
• If compensation exceeds the operator’s liability limit, the Central government assumes additional liability.

8. Insurance and financial security

• Nuclear operators must maintain insurance or other financial security to cover potential damage.
• The Bill provides for a Nuclear Damage Claims Commission, replacing the earlier liability framework.

9. Research and innovation: Research and innovation activities are largely exempt from licensing, except where national security or reserved activities are involved.

Significance of the SHANTI Bill

1. Unlocks large capital mobilisation by expanding the pool of eligible operators for the 100 GW by 2047 target.
2. Shares construction and commissioning risk beyond a single public operator.
3. Ends the operating monopoly of the Nuclear Power Corporation of India.
4. Creates a clear licensing pathway for government entities, joint ventures, and companies.
5. Retains state control over sensitive fuel cycles, limiting proliferation risks.
6. Reduces legal ambiguity by consolidating safety, enforcement, and dispute resolution in one statute.
7. Lowers transaction costs and timelines for site approval and commissioning.

Major concerns related to the SHANTI Bill

1. Adequacy of liability caps: The maximum operator liability is capped at ₹3,000 crore, raising concerns about victim compensation and environmental remediation.
2. Shift of burden to the State: Liability beyond the cap shifts to the Centre, transferring long-term financial risk to the State.
3. Reduced supplier accountability: Supplier liability is removed except where explicitly provided in contracts or in cases of deliberate intent.
4. Restricted judicial remedies: Civil court jurisdiction over nuclear damage claims is barred, limiting legal options for victims.
5. Regulatory independence concerns: Despite statutory status, appointments remain Centre-driven, affecting trust and confidence.
6. Controlled private participation: Private role is confined to non-sensitive segments.

Way forward

1. Strengthen regulatory independence through greater insulation from executive influence.
2. Review liability caps periodically to align them with real damage risks.
3. Standardise supplier contracts to ensure uniform accountability.
4. Enhance transparency and public participation in safety and compensation systems.

Conclusion

The SHANTI Bill represents a decisive shift in India’s nuclear policy by enabling private participation, simplifying liability, and consolidating regulation. It supports long-term clean energy goals and capital mobilisation while retaining state control over sensitive activities. Addressing concerns related to liability adequacy, supplier accountability, judicial remedies, and regulatory independence is essential for safe, trusted, and sustainable nuclear expansion.

Question for practice:

Evaluate the significance and major concerns of the SHANTI Bill, 2025 in helping India achieve its target of 100 GW nuclear power capacity by 2047.

Source: The Hindu