India's SHANTI Act and Nuclear Energy

Exam-Focused Notes on the SHANTI Act and Nuclear Policy in India

1. Legislation Overview

• SHANTI Act: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India.
• Replaces: Atomic Energy Act 1962 and Civil Liability for Nuclear Damage (CLND) Act 2010.
• Objective: Encourage private sector participation and potential foreign investments in nuclear energy.

2. Nuclear Capacity Goals

• Current nuclear capacity: 8.8 GW (~1.5% of total installed capacity).
• Target by 2047: Increase to 100 GW (>6 times current capacity).
• Contribution to electricity generation expected to rise from 3% to a significantly higher figure by 2047.

3. Operational Safety Concerns

• Historical Accidents:
  • Three Mile Island (1979)
  • Chernobyl (1986)
  • Fukushima (2011)
• Global consensus: Operators must compensate victims immediately post-accident, irrespective of identifying the cause.
• Operators can seek recourse from suppliers only under specific conditions related to fault or intent.

4. Changes in Liability Provisions

• Previous Liability Structure (under CLND Act):
  • Compensation cap: ₹1,500 crore for nuclear incidents; additional coverage by the Centre through an insurance pool (up to ₹4,000 crore for excess damages).
• SHANTI Act Liability Gradation:
  • Penalties vary based on plant size:

    • 3,600 MW: ₹3,000 crore

    • 3,600 MW - 1,500 MW: ₹1,500 crore
    • 1,500 MW - 750 MW: ₹750 crore
    • 750 MW - 150 MW: ₹300 crore
    • <150 MW: ₹100 crore
• The removal of clause allowing compensation claims based on supplier fault (previous condition b) to encourage investment.

5. Regulatory Framework

• Statutory recognition given to the Atomic Energy Regulatory Board.
• Central Government retains control over key functions: appointing chairs, granting major licenses.

6. Energy Security Vision

• Original vision by Homi Bhabha aimed to leverage nuclear power for energy security and utilize thorium resources.
• Three-stage nuclear program:
  • Stage 1: Pressurized Heavy Water Reactors to use natural uranium (U-238) to produce plutonium.
  • Stage 2: Fast breeder reactors aimed for commissioning by September 2026.
  • Stage 3: Combine U-233 with thorium for sustainable energy.

7. Emerging Technologies

• Small Modular Reactors (SMRs):
  • Aim to produce electricity but require enriched uranium-235 (currently lacking in India).
  • Designed for modular assembly similar to modern products.
  • Address some safety concerns but still face challenges with nuclear waste disposal and thorium utilization.

8. Domestic and International Context

• Post the 2008 Indo-U.S. Nuclear Deal, India gained access to international uranium and nuclear technology, facilitating nuclear investment.
• The evolution of nuclear policy reflects changing technological landscapes and safety standards in energy generation.

Consider these key elements to understand the implications and operational challenges in India's evolving nuclear power landscape governed by the SHANTI Act.