Parliament’s passage of the Sustainable Harnessing and Advancement of Nuclear Energy in India (SHANTI) Bill marks a watershed moment in India’s energy policy. For the first time since Independence, India has formally opened its tightly State-controlled nuclear power sector to private and foreign participation. While the government projects the law as essential for energy security and climate goals, the Opposition sees it as a dangerous dilution of accountability in one of the country’s most sensitive sectors.
Why the SHANTI Bill Matters Now
India’s electricity demand is rising rapidly, even as it struggles to cut dependence on coal. Renewable sources like solar and wind, though expanding, suffer from intermittency, storage costs, and grid integration challenges. Nuclear energy, by contrast, provides round-the-clock baseload power with very low carbon emissions.
Against this backdrop, the government has expanded the Nuclear Energy Mission, earmarking ₹20,000 crore for Small Modular Reactors (SMRs) and advanced pressurised water reactors. The SHANTI Bill is designed to mobilise private capital and technology to scale up nuclear capacity faster than the State alone can manage.
What the SHANTI Bill Changes
The Bill fundamentally alters the ownership and operational structure of India’s nuclear power sector. Until now, nuclear energy has remained almost entirely under the control of Nuclear Power Corporation of India Limited (NPCIL), backed by restrictive laws such as the Atomic Energy Act, 1962.
Under SHANTI, private Indian companies can now own, build, and operate nuclear power plants. Foreign suppliers are also permitted to participate, though ownership control remains capped.
Key features include:
- Up to 49% private participation, with 51% government control over sensitive areas
- End of NPCIL’s monopoly over plant operations
- A public–private partnership model with government oversight
- Support for SMRs and advanced indigenous reactor designs
The New Role of the Atomic Energy Regulatory Board
A major institutional change under the Bill is the statutory empowerment of the Atomic Energy Regulatory Board (AERB). Established in 1983, the AERB earlier functioned under executive authority. It is now answerable directly to Parliament.
Its responsibilities include nuclear safety, radiation protection, licensing, inspections, and emergency preparedness. With private players entering the sector, the AERB becomes the central gatekeeper for authorisations covering radioactive material handling, plant operations, and facility decommissioning. Critics, however, warn that concentrating extensive powers in one regulator may weaken checks and balances.
Safeguards Built Into the Law
The government argues that national security concerns remain protected. The Bill does not explicitly allow foreign direct investment in nuclear power. Strategic activities — fuel reprocessing, heavy water production, waste management, enrichment, and isotopic separation — stay firmly under government control.
Additionally, a nuclear liability fund has been proposed to meet compensation needs in the event of an accident. All private operators must secure clearances from the AERB across the entire lifecycle of nuclear facilities.
The Big Shift on Nuclear Liability
The most controversial change concerns liability. Under the earlier Civil Liability for Nuclear Damage Act, 2010, plant operators could seek recourse against suppliers for defective equipment or design flaws. This provision was a major deterrent for foreign companies.
The SHANTI Bill removes supplier liability altogether and introduces fixed caps on operator liability:
- ₹3,000 crore for large plants (3,600 MW)
- ₹1,500 crore for medium plants (1,500–3,600 MW)
- ₹100 crore for SMRs (150 MW)
Any compensation beyond these limits will be borne by the Union government, supplemented by the liability fund. Penalties for severe violations are capped at ₹1 crore.
The Government’s Case for the Bill
The Centre maintains that predictable liability rules are essential to attract investment and advanced technology. It argues that nuclear energy strengthens energy security, reduces fuel imports, and supports India’s net-zero target for 2070. The Bill could also revive stalled civil nuclear partnerships with the U.S., France, and Japan, diversifying India’s nuclear cooperation beyond Russia.
India’s Indigenous Nuclear Programme
India already runs an advanced indigenous nuclear programme based on a three-stage fuel cycle aimed at harnessing thorium reserves. It operates 25 reactors across seven plants, including pressurised heavy water reactors and light water reactors, with fuel reprocessing capabilities developed by Bhabha Atomic Research Centre. Fast breeder reactor technology for thorium use has also been operationalised.
Opposition parties argue that this self-reliance makes extensive foreign and private entry unnecessary.
Why the Opposition Is Alarmed
Critics see the SHANTI Bill as shifting risks from private firms to the State and society. By capping liability and eliminating supplier accountability, they argue that the ‘polluter pays’ principle has been weakened. Comparisons have been drawn with disasters such as Fukushima and Chernobyl, where actual damages ran hundreds of times higher than proposed caps.
Further concerns include:
- Section 39 overriding parts of the RTI Act, limiting transparency
- Section 42 exempting nuclear facilities from general labour safety laws
- No mandatory public hearings or environmental impact disclosures
- Absence of community consent and regular Parliamentary scrutiny
Trade unions and Opposition parties have described the Bill as pro-profit and pro-oligarch, warning of risks to public safety.
What to Note for Prelims?
- SHANTI Bill and its key provisions
- Role and status of the AERB
- India’s nuclear reactor types and fuel cycle
- Concept of nuclear liability and operator caps
What to Note for Mains?
- Energy security versus safety and accountability trade-offs
- Implications of private participation in strategic sectors
- Debate over nuclear liability and the ‘polluter pays’ principle
- Transparency and regulatory oversight in high-risk industries
