Context:
Parliament has brought into force the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act. This is certainly going to boost India’s Nuclear sector.
Contents:
Facts for Prelims
Important Nuclear related Accidents
Vienna Convention on Civil Liability for Nuclear Damage
Convention on Supplementary Compensation for Nuclear Damage
National Defence Authorization Act
Nuclear Energy Mission
India’s current Nuclear Energy
Important provisions of SHANTI Act
Significance of SHANTI Act
India’s Nuclear Vision
Way forward
Important Nuclear Related Accidents
Three Mile Island Disaster (1979): Located in Harrisburg Pennsylvania.
Chernobyl nuclear meltdown in 1986: Located near Pripyat a city in the Ukrainian SSR, USSR (now Ukraine) exploded
Fukushima Core Meltdown (2011): Cause was Tohoku EQ & Tsunami – resulted in electrical grid failure – Unable to sufficiently cool reactors after shut down.
Vienna Convention on Civil Liability for Nuclear Damage
- 1963 & entered into force in 1977
- Strict Liability- Nuclear operators are held liable for nuclear damage regardless of fault. This ensures victims don’t need to prove negligence.
- Exclusive Liability- only the operator of a nuclear installation is liable, preventing complex litigation against multiple parties.
- Claims must be brought in the courts of the state where the nuclear incident occured
- Compensation Limits- Convention set minimum liability amounts, though states may impose higher limits.
1997 Protocol Enhancements
- Expanded definition of Nuclear Damage – Includes env. damage loss of income & preventive measures
- Higher Liability Amounts – Raised minimum liability amount to reflect modern realities.
- Longer claim periods – Extended time limit for victims to file claims
Note: India is not a part.
Nuclear Energy Mission
The Nuclear Energy Mission was launched in the Union Budget 2025-26 which is focused on research and development (R&D) of Small Modular Reactors (SMRs).
India aims to develop at least five indigenously designed and operational SMRs by 2033.
Key new technology developments include Bharat Small Reactors (BSRs), Small Modular Reactors (SMRs), Molten Salt Reactors, and High-Temperature Gas-Cooled Reactors.
India’s current Nuclear Energy
As of 2025, India’s current power capacity stands at 8.18 GW, with an ambitious target of 100 GW by 2047.
Currently, India operates more than 20 nuclear reactors, all managed by Nuclear Power Corporation of India Limited (NPCIL), with over a dozen new projects planned.
Key Features
Revised nuclear liability framework:
The SHANTI Bill repeals the CLND Act, 2010 and removes supplier liability (Section 17B), ensuring that nuclear plant operators alone are responsible for compensation, thereby aligning India’s regime with international nuclear liability conventions.
Previous CLND:
Allowed operators to claim recourse from a supplier of equipment under three instances:
If the supplier & an operator have an explicit agreement.
The nuclear incident has proved to be due to the suppliers or their equipment’s fault.
The nuclear incident has resulted from deliberate intent to cause nuclear damage.
Key Features
- Strategic State Control:
While allowing private participation, the Bill retains government control over sensitive areas such as nuclear fuel production, heavy water manufacturing, and radioactive waste management,
- Capping of operator liability & also a graded approach:
Operators of plants above 3600 MW – Liable for 3000cr.
3600MW-1500MW – 1500cr.
1900-750MW – 760cr
750-150MW – 300cr.
150MW – 100cr. - Creation of a Dedicated Atomic Disputes Tribunal: Proposes a dedicated atomic disputes tribunal to improve regulatory certainty and investor confidence.
- Facilitation of Advanced Nuclear Technologies: By enabling private participation and regulatory clarity, the Bill supports the deployment of Small Modular Reactors and indigenous reactor designs.
Significance of SHANTI Act
SHANTI encourages private companies to participate and potentially, allow foreign funding to flow in India’s nuclear sector.
- India has plans to increase its current nuclear capacity from 8.8 GW (or about 1.5% of the total installed) to 100 GW by 2047 and thereby increase the contribution of nuclear power to generated electricity from the current 3%. State-owned nuclear power utilities have projected that they will add about 54 GW with the rest, presumably, from private companies.
Supplier Liability Reform:
- By subsuming CLND Act, it addresses long-standing concerns of foreign suppliers about liability risks.
- Facilitates smoother nuclear commerce and technology transfer.
Energy security
- Expands India’s nuclear capacity to meet rising electricity demand.
- Supports diversification of energy mix and reduction of carbon emissions.
Global Cooperation:
- Welcomed by the U.S. as a step toward stronger civil nuclear cooperation and joint R&D.
- Positions India as a more reliable partner in international nuclear supply chains.
Concerns
Liability Dilution:
- The Act repeals the Civil Liability for Nuclear Damage Act, 2010 (CLNDA), which had strong provisions for supplier accountability.
- Opposition parties argue this removes victims’ right to recourse in case of nuclear accidents, shifting the burden onto the state and taxpayers.
Private Sector Entry:
- For the first time since independence, private companies can build and operate nuclear plants.
Concerns include:
- Safety risks if profit motives override strict regulation.
- Foreign dominance, as global firms may gain control of India’s nuclear infrastructure.
Transparency & Governance:
- The Act overrides RTI safeguards, limiting public scrutiny of nuclear projects.
- Critics argue this undermines democratic accountability in a sector with high safety and environmental stakes.
- Opposition MPs accused the government of “bulldozing” the bill through Parliament without adequate debate.
Nuclear Power Corporation of India Limited (NPCIL)
Nuclear Power Corporation of India Limited (NPCIL) is a Public Sector Enterprise under the administrative control of the Department of Atomic Energy (DAE), Government of India.
The Company was registered as a Public Limited Company under the Companies Act, 1956 with the objectives of operating atomic power plants and implementing atomic power projects for generation of electricity in pursuance of the schemes and programmes of the Government of India under the Atomic Energy Act, 1962.
Atomic Energy Regulatory Board (AERB)
The Atomic Energy Regulatory Board was constituted on November 15, 1983, by the President of India by exercising the powers conferred by the Atomic Energy Act, 1962 to carry out certain regulatory and safety functions under the Act.
The Atomic Energy Regulatory Board (AERB) operates under the Department of Atomic Energy (DAE), which itself is under the direct charge of India’s Prime Minister.
The SHANTI Bill (2025) provides explicit statutory recognition to AERB, reinforcing its independence and regulatory power.
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