Introduction to SHANTI Bill, 2025
The proposed Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI) aims to open the nuclear power sector to private and foreign participation. It seeks to repeal the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010.
Policy Imperatives
- The need for base load alternatives to coal-fired power to complement renewable energy sources.
- The necessity for foreign capital to increase nuclear power capacity.
Provisions for Foreign Funding
The Bill allows for potential foreign investments, especially in small modular reactors (SMRs). Sovereign funds from West Asia have shown interest in supporting India’s nuclear ambitions.
Legal Amendments
- Align the new legislation with global norms to address investor concerns.
- Key amendments focus on diluting Section 17(b) of the CLNDA to facilitate foreign investment.
Section 17 of the CLNDA
Previously, Section 17 allowed for recourse against suppliers in case of nuclear incidents due to defective equipment. This provision was seen as a barrier for foreign vendors.
Clarification and Amendments
- Redefine the term "supplier" to include manufacturers, designers, and quality assurance providers.
- The amendment aims to align Section 17 with international standards and clarify supplier roles.
Liability Caps and Regulatory Oversight
The SHANTI Bill proposes graded liability caps for nuclear operators and requires safety authorization from the Atomic Energy Regulatory Board (AERB) for all entities involved in nuclear energy production.
Impact on Future Nuclear Projects
- Allows for flexibility in recourse provisions, reducing long-term liability risks for foreign vendors.
- Ensures comprehensive oversight by AERB in contractual safety authorizations.
