SHANTI Act and India’s Nuclear Development

IN NEWS: SHANTI Act and India’s Nuclear Development

Analysis

Why the SHANTI Act Is in News?

• Parliament has brought into force the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act.
• The Act repeals and replaces:
  • Atomic Energy Act, 1962
  • Civil Liability for Nuclear Damage (CLND) Act, 2010
• The legislation aims to accelerate India’s nuclear power expansion and enable private sector participation.

What Is the SHANTI Act?

• SHANTI is a comprehensive legislation governing civil nuclear energy production, safety, liability and regulation in India.
• It opens the nuclear sector to private companies and potentially foreign investment, which was earlier restricted to public sector entities.
• It introduces a graded liability framework for nuclear power plant operators.

Objectives of the SHANTI Act

• Expand India’s nuclear power capacity.
• Reduce legal and financial barriers for private sector participation.
• Align nuclear liability norms with global practices.
• Ensure safety while encouraging investment and technology inflow.
• Support India’s long-term energy security and decarbonisation goals.

Static Background: India’s Nuclear Power Programme

Current Nuclear Capacity

• Installed nuclear capacity: 8.8 GW
• Share in total installed power capacity: about 1.5%
• Share in electricity generation: about 3%

Target under SHANTI

• Increase nuclear capacity to 100 GW by 2047.
• Public sector utilities are expected to add about 54 GW.
• Remaining capacity is expected from private sector participation.

Key Changes Introduced by SHANTI

1. Liability Framework

• Earlier CLND Act allowed operator recourse against suppliers if:
  • There was an agreement, or
  • Damage was due to supplier fault, or
  • There was deliberate intent.
• SHANTI removes supplier fault-based liability.
• The term “supplier” has been removed, eliminating indirect liability concerns.

2. Graded Compensation Caps

• Liability is linked to plant capacity:
  • Above 3,600 MW: ₹3,000 crore
  • 3,600–1,500 MW: ₹1,500 crore
  • 1,500–750 MW: ₹750 crore
  • 750–150 MW: ₹300 crore
  • Below 150 MW: ₹100 crore
• All existing Indian nuclear plants are 3,000 MW or lower.

Role of the Private Sector

• Private firms can now build and operate nuclear power plants.
• The graded liability system is designed to reduce investment risk.
• The government argues this will help attract:
  • Advanced reactor technologies
  • Global capital
  • Domestic manufacturing capabilities

Nuclear Safety and Regulation

• Nuclear safety remains central due to past global accidents:
  • Three Mile Island (1979)
  • Chernobyl (1986)
  • Fukushima (2011)
• SHANTI grants statutory status to the Atomic Energy Regulatory Board (AERB).
• However, the Central Government retains controlover:
  • Appointment of the AERB Chairperson
  • Granting of major licences

India’s Three-Stage Nuclear Programme (Static Component)

• Stage I: Pressurised Heavy Water Reactors using natural uranium.
• Stage II: Fast Breeder Reactors producing plutonium and U-233.
• Stage III: Thorium-based reactors using U-233.

Current Status

• India has not yet fully entered Stage II.
• Prototype Fast Breeder Reactor commissioning has been delayed to September 2026.

Role of Small Modular Reactors (SMRs)

• SHANTI implicitly supports India’s interest in Small Modular Reactors.
• Features of SMRs:
  • Smaller capacity
  • Modular manufacturing
  • Require enriched uranium-235
• Limitations:
  • Higher per-unit electricity cost
  • Do not significantly solve nuclear waste issues
  • Limited relevance to India’s thorium-based vision

Concerns and Criticism

• Liability caps may be insufficient given high costs of nuclear accidents.
• Removal of supplier liability could shift risk to operators and the state.
• Continued government control over regulation raises questions of independence.
• SMR dependence may dilute focus on thorium-based self-reliance.

Way Forward

• Strengthen regulatory independence and transparency.
• Ensure robust insurance and compensation mechanisms.
• Balance private participation with public accountability.
• Accelerate indigenous reactor and thorium technology development.
• Integrate nuclear expansion with climate and clean-energy goals.

Updated – 21 December 2025 ; 07:46 AM IST | News Source: The Hindu