New Bill to Transform Nuclear Energy Sector

Exam-Focused Notes on SHANTI Bill, 2025:

1. Legislation Overview:

• Bill Title: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025.
• Purpose: To facilitate private sector participation in India’s nuclear power sector, replacing and modernizing the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.

2. Objectives:

• To achieve 100 gigawatts nuclear power capacity by 2047.
• Promote clean and abundant energy to support accelerated growth in sectors like Artificial Intelligence, high-performance computing, and quantum technologies.

3. Key Provisions:

• Private Sector Involvement: Allows private companies, joint ventures, and public entities to establish nuclear power plants and manage nuclear fuel operations (transportation, storage, import/export).
• Safety Authorization: Mandatory for activities involving radioactive substances and radiation equipment.
• Regulatory Authority: All entities must obtain safety authorisation from the Atomic Energy Regulatory Board (AERB).

4. Regulatory Changes:

• Removal of the 'right of recourse' which previously permitted operators to seek compensation from suppliers post-nuclear accidents.
• Intended to attract foreign investment and reduce liability risks for suppliers.

5. Central Government Oversight:

• Maintains exclusive control over sensitive processes such as:
  • Enrichment and isotopic separation of radioactive substances.
  • Management and reprocessing of spent fuel and high-level radioactive waste.
  • Heavy water production and upgradation.

6. Institutional Arrangements:

• Introduction of:
  • Atomic Energy Redressal Advisory Council.
  • Claims Commissioners.
  • Nuclear Damage Claims Commission, with appellate authority under the Appellate Tribunal for Electricity.
• Establishment of a Nuclear Liability Fund for compensation in the event of nuclear incidents.

7. Liability Framework:

• Categorization and limits on liabilities based on thermal power capacity of reactors:
  • Above 3,600 MWe: Liability capped at ₹3,000 crore.
  • 1,500 MWe to 3,600 MWe: Liability capped at ₹1,500 crore.
  • 750 MWe to 1,500 MWe: Liability capped at ₹750 crore.
  • 150 MWe to 750 MWe: Liability capped at ₹300 crore.
  • Up to 150 MWe (including transport and fuel cycle facilities): Liability capped at ₹100 crore.

8. Historical Context:

• The original Atomic Energy Act was enacted in 1962, repealing the Atomic Energy Act of 1948.
• The Civil Liability for Nuclear Damage Act was implemented in 2010 to ensure prompt compensation under a no-fault liability scheme.

9. Economic Implications:

• Aimed at boosting investment in nuclear energy, ensuring energy security, and facilitating technological advancements in related fields.

10. Related Constitutional and Policy Framework:

• Under Article 21 (Right to Life), the safe operation of nuclear facilities under appropriate legal and safety standards is essential.
• Relevant government policies may include initiatives towards energy reforms, clean energy targets, and investment in technological innovation.

Summary: The SHANTI Bill, 2025, is a landmark move aimed at restructuring India’s nuclear energy sector by allowing private participation and ensuring safety through regulatory frameworks. Key changes in liability and safety measures aim to attract both domestic and foreign investment, contributing to India's long-term energy goals.