Context:
The President of India has granted assent to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, which was passed during the Winter Session of Parliament, marking a major reform in India’s civil nuclear energy governance.
About the SHANTI Act, 2025
A comprehensive and unified legislation governing India’s civil nuclear sector.
It replaces:
- Atomic Energy Act, 1962
- Civil Liability for Nuclear Damage Act, 2010
and creates a single integrated framework for:
- Regulation
- Licensing
- Safety oversight
- Nuclear liability
Aim
- Accelerate nuclear power capacity for clean energy transition
- Enable private sector and joint venture (JV) participation under strict regulation
- Modernise safety, liability, and institutional oversight mechanisms
Key Features of the Act
1. Opening the Nuclear Sector to Non-Government Entities
- Licences may be granted to:
- Indian private companies
- Government–private joint ventures
- Other entities expressly permitted by the Central Government
- Foreign-incorporated companies are excluded
- Permitted activities include:
- Building, owning, operating, and decommissioning nuclear plants
- Fabrication, transport, trade, and storage of nuclear fuel
2. Revised Nuclear Liability Framework
- Retains:
- No-fault liability principle for operators
- Compulsory insurance coverage
- Introduces tiered liability caps based on reactor capacity:
- From ₹100 crore to ₹3,000 crore
- Replaces the earlier flat ₹1,500 crore cap
- Central Government bears liability beyond the operator’s cap
- Liability exclusions (e.g., specified natural disasters) and claims adjudication mechanisms retained
3. Change in Operator’s Right of Recourse
- Removes automatic right of recourse against suppliers for defective equipment/materials
- Recourse allowed only:
- If explicitly provided in contract, or
- In cases of deliberate acts causing damage
- Aligns India’s regime with global nuclear liability norms
4. Expanded Territorial Jurisdiction for Claims
- Compensation now extends to:
- Nuclear damage suffered in foreign states, arising from incidents in India
- Subject to conditions specified under the Act
5. Statutory Status to Atomic Energy Regulatory Board (AERB)
- Grants legal backing to AERB to ensure safe use of nuclear energy and radiation
- Composition:
- Chairperson
- One whole-time member
- Up to seven part-time members (experts of eminence)
- Appointments:
- Through search-cum-selection committee
- Tenure: 3 years, extendable up to 6 years
6. Atomic Energy Redressal Advisory Council
- New appellate body to hear appeals against decisions of:
- Central Government
- AERB
- Chairperson: Chairperson, Atomic Energy Commission
- Members include heads of:
- BARC
- AERB
- Central Electricity Authority (CEA)
- Further appeal lies with the Appellate Tribunal for Electricity
