SHANTI Bill opens nuclear power to private

SHANTI Bill Opens Nuclear Power Sector To Private Players

Why in the News?

The Union government has introduced the SHANTI Bill, 2025 in Parliament to replace existing nuclear laws, enable private and foreign participation in nuclear power generation, reform liability norms, and support India’s clean energy and net-zero ambitions. The bill also addresses the need for streamlined environmental clearance processes for nuclear projects.

SHANTI Bill: Key Provisions And Structural Changes

• The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 was introduced in the Lok Sabha by the Ministry of Science and Technology.
• It proposes to replace the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010, marking a major legal overhaul. The bill also considers the environmental impact assessment requirements for nuclear facilities.
• The Bill ends the monopoly of the Nuclear Power Corporation of India Ltd. (NPCIL), allowing private sector entities, including foreign companies, to make, own and operate nuclear power plants. This change necessitates a robust framework for environmental clearances and adherence to the Forest Conservation Act.
• It creates an atomic energy regulatory structure accountable to Parliament, strengthening democratic oversight and promoting environmental democracy in the nuclear sector.
• The Bill restricts operators’ right of recourse against suppliers, reducing litigation risks that previously deterred private and foreign investors. It also addresses concerns about ex post facto or retrospective environmental clearances.
• It introduces graded liability caps for operators based on plant size, and limits the maximum penalty to ₹1 crore, even for a “severe breach“. This approach considers the polluter pays principle while balancing investor concerns.
• According to the government, the Bill establishes a pragmatic civil nuclear liability regime while reinforcing safety, security, safeguards, quality assurance and emergency preparedness. It also aims to ensure compliance with Coastal Regulation Zone norms for coastal nuclear facilities.

Strategic Rationale: Energy Transition And Net-Zero Goals

• Nuclear energy currently contributes only 1.5% of installed capacity and about 3% of electricity generation in India, highlighting untapped potential for a pollution free environment.
• The SHANTI Bill aligns with India’s goal of achieving net-zero emissions by 2070, given nuclear power’s low-carbon baseload characteristics. This goal is supported by evolving environmental jurisprudence in India.
• The government aims to scale up nuclear capacity from 8.8 GW to 100 GW by 2047, significantly expanding clean energy supply. This expansion will require careful consideration of the precautionary principle in environmental management.
• The Union Budget announced a ₹20,000 crore mission for developing Small Modular Reactors (SMRs), which are safer and more flexible. These projects will be subject to rigorous environmental impact assessment under the EIA notification.
• Plans also include deploying customised 220 MW Pressurised Heavy Water Reactors (PHWRs) suited to domestic conditions, with due consideration for environmental safeguards.
• Experts argue that earlier liability provisions under the CLND Act, 2010 discouraged suppliers and investors due to uncertain risk exposure, including potential environmental liabilities.
• The Bill seeks to align India with global civil nuclear liability conventions, improving investor confidence and technological collaboration while maintaining high environmental standards.