SHANTI Act

Context

1. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 permits private companies and joint ventures to undertake specified nuclear activities, subject to Central Government licensing and safety authorisation.
2. It introduces a graded nuclear-liability framework and revises the provisions governing recourse against suppliers.
3. The reform supports India’s Nuclear Energy Mission, which seeks to expand nuclear power for energy security and low-carbon electricity.

Evolution of Nuclear Liability in India

1. India’s earlier nuclear-liability framework was primarily governed by the Civil Liability for Nuclear Damage (CLND) Act, 2010.
2. The 2010 law adopted a no-fault liability approach, making the operator responsible for compensation without requiring victims to prove negligence.
3. It also provided a limited right of recourse against suppliers in specified circumstances, including defective equipment or materials.
4. Concerns over supplier exposure had been cited as a factor affecting international participation in India’s nuclear projects.

Key Provisions

1. Private Sector Participation

• • Private entities can undertake specified nuclear activities under government licences.
  • Activities involving radiation require appropriate safety authorisation.
  • Licensees are responsible for nuclear security, radioactive-waste management, compensation and decommissioning.

2. Graded Liability

• • Operator liability is linked to the type and capacity of the nuclear installation.
  • The prescribed liability ranges from ₹100 crore to ₹3,000 crore.
  • The overall liability for a nuclear incident is capped at 300 million Special Drawing Rights (SDRs), unless the Central Government specifies a higher amount.

3. Supplier Recourse

• • The Act removes the statutory right of recourse against suppliers specifically for defective equipment or materials.
  • Recourse can still arise where it is provided for in a written contract or where the incident results from an intentional act.

4. Regulatory Framework

• • The Atomic Energy Regulatory Board (AERB) receives statutory recognition.
  • Operators must maintain insurance, financial security, or both against prescribed nuclear liability.
  • The framework covers nuclear safety, security, emergency preparedness, radioactive-waste management and decommissioning.

Concerns

• Compensation adequacy: The statutory ceiling may be insufficient to meet losses from a severe nuclear accident.
• Supplier accountability: Reduced statutory recourse may raise concerns about incentives for equipment quality and safety.
• Natural disasters: The treatment of a grave natural disaster of an exceptional character as a liability-limiting circumstance requires careful interpretation and robust safety planning.
• Regulatory oversight: Private participation makes strong and credible safety regulation essential.
• Project economics: High capital requirements and long construction periods remain major challenges for nuclear expansion.

Way Forward

• Ensure independent, technically competent and well-resourced nuclear regulation.
• Maintain adequate insurance and financial protection for affected persons.
• Enforce stringent supplier quality and safety standards.
• Strengthen emergency preparedness, disaster resilience and radioactive-waste management.
• Promote indigenous development of SMRs and advanced reactor technologies with rigorous safety assessment.

Conclusion

The SHANTI Act marks a major restructuring of India’s nuclear-energy framework. It seeks to widen participation and investment through a revised liability and regulatory regime. Its success will depend on balancing nuclear expansion with strong safety oversight, adequate victim protection and clear accountability.

FAQs

1. What is the SHANTI Act, 2025?

It establishes a new legal framework for India’s nuclear sector, covering private participation, nuclear liability and regulation.

2. What is the operator-liability range under the Act?

Depending on the type and capacity of the installation, operator liability ranges from ₹100 crore to ₹3,000 crore.

3. What is the overall liability ceiling?

The overall liability is capped at 300 million SDRs, unless the Central Government specifies a higher amount.

4. Has supplier recourse been completely abolished?

No. Recourse remains possible when provided for in a written contract or when an incident results from an intentional act.

5. What is the role of the AERB?

The AERB has statutory recognition and performs key nuclear safety and regulatory functions.

6. Why is the SHANTI Act significant?

It can facilitate private investment, technology cooperation and expansion of nuclear power, supporting India’s long-term energy-security objectives.

7. What are the major concerns associated with the Act?

The key concerns are compensation adequacy, supplier accountability, regulatory oversight and safety incentives.