Prelims: Current events of national and international relations | Economy
Why in news?
The Minister of State for Science and Technology introduced the SHANTI Bill, 2025, in Parliament, marking a major step towards updating India’s legal framework governing nuclear energy.
- Aim – To open India’s nuclear sector to private players, streamlining laws, and positioning nuclear energy as a cornerstone of clean, reliable power for industrial growth.
- Replacing laws — It replaces outdated laws, such as the Atomic Energy Act of 1954 and the Civil Liability for Nuclear Damage (CLND) Act of 2010.
Key Provisions of the bill
- Private Sector Participation – For the 1st time, private companies will be allowed to invest up to 49% in nuclear projects.
- They can also participate in core activities such as exploration of atomic minerals, fuel fabrication, equipment manufacturing, and potentially even aspects of plant operations.
- Unified Legal & Regulatory Framework - It consolidates multiple existing laws into a single legislative regime, simplifying licensing, compliance, safety, and operational rules to enhance clarity and investor confidence.
- It grants statutory status to the Atomic Energy Regulatory Board (AERB).
- Market Reform – It ends Nuclear Power Corporation of India Limited (NPCIL)’s monopoly over nuclear plant operations by opening the sector to private and foreign players.
- Liability Reforms – The amendments to the Civil Liability for Nuclear Damage (CLND) Act will clarify operator and supplier responsibilities.
- It introduced insurance-backed caps and provided government backstops-critical to attracting private and foreign investment.
- Penalty cap – It shields operators by capping their liability according to the size of the plants they run, and sets a maximum penalty of Rs 1 crore, even in cases of a “serious violation.”
- Removal of Supplier liability – It restricts the instances under which nuclear plant operators are allowed to seek compensation from equipment suppliers in case of an accident.
- Compensation framework – It penalises operators in case of a nuclear accident, requiring them to compensate on the basis of the plant size, not actual damage.
- Installation above 3,600 MW - Operators pay up to Rs. 3,000 crore;
- Between 1,500 MW and 3.600 MW up to Rs 1,500 crore; and
- Lower down (150 MW) to Rs 100 crore.
- Safety & Preparedness – It strengthens mechanisms for safety, security, safeguards, quality assurance, and emergency preparedness.
- Operator’s right to claim from suppliers (recourse) – Allowed only if -
- There is an explicit agreement with the supplier.
- The accident is proven to have been caused by the supplier or faulty equipment.
- The accident was due to deliberate intent to cause nuclear damage.
- India’s Target – India has set an ambitious target of 100 gigawatts (GW) of nuclear power capacity by 2047, nearly 11 times increase from current levels.
- Current status (2025) – India operates 25 reactors with a combined installed capacity of 8,880 megawatts, and 17 more reactors are under various stages of construction.
India is already a nuclear weapons state having acquired atomic bombs in 1998.
References
- The Hindu | SHANTI Bill spurs private sector to make, run nuclear plants
- NDTV | SHANTI Bill, 2025, was tabled in Parliament
