Context:
The recently passed SHANTI Act has generated debate for allowing private participation in India’s nuclear power sector and modifying the liability framework under the Civil Liability for Nuclear Damage Act (CLNDA). Critics argue that the amendments shield suppliers from liability, weaken regulatory oversight, and limit compensation for victims of nuclear accidents.
Key Highlights:
- Expansion of Private Participation in Nuclear Sector
- The SHANTI Act permits private companies to operate nuclear power plants, ending the Union government’s exclusive control over the sector.
- The move is aimed at attracting foreign investment and accelerating nuclear power capacity.
- Changes to Nuclear Liability Framework
- Liability for nuclear accidents is channeled primarily to the operator, while suppliers are indemnified from responsibility.
- The operator’s liability is capped between ₹100 crore and ₹3,000 crore.
- The total accident liability, including the Central Government’s contribution, is capped at 300 million Special Drawing Rights (SDR) (around ₹3,900 crore).
- Removal of Key Legal Safeguards
- The Act removes the “Right of Recourse”, preventing operators from suing suppliers for accidents caused by defective equipment.
- Clause 46 of the CLNDA, which allowed victims to seek remedies under other laws, has also been omitted.
- As a result, suppliers cannot face civil or criminal liability in India, even if accidents arise due to faulty equipment.
- Regulatory Concerns
- The Act affects the independence of the Atomic Energy Regulatory Board (AERB).
- Members of AERB will now be selected by a committee constituted by the Atomic Energy Commission, potentially weakening independent safety oversight.
- Safety and Economic Concerns
- Nuclear energy currently contributes only about 3% of India’s electricity generation.
- Critics argue the government’s target of 100 GW nuclear capacity by 2047 may be economically and technologically challenging.
Relevant Prelims Points:
- Civil Liability for Nuclear Damage Act (CLNDA), 2010
- Provides legal framework for compensation to victims of nuclear accidents in India.
- Establishes operator liability and compensation mechanisms.
- Allows operators limited right of recourse against suppliers in specific cases.
- Special Drawing Rights (SDR)
- International reserve asset created by the International Monetary Fund (IMF).
- Used to supplement member countries’ official foreign exchange reserves.
- Value based on a basket of major currencies (USD, Euro, Yuan, Yen, Pound).
- Atomic Energy Regulatory Board (AERB)
- Established in 1983.
- Responsible for nuclear and radiation safety regulation in India.
- Oversees safety of nuclear installations and radiation facilities.
- Major Nuclear Accidents
- Chernobyl Disaster (1986, Ukraine) – reactor explosion causing widespread radioactive contamination.
- Fukushima Disaster (2011, Japan) – nuclear meltdown triggered by a tsunami.
Relevant Mains Points:
- Arguments Supporting the SHANTI Act
- Facilitates private investment and foreign collaboration in nuclear energy.
- Aligns India’s liability regime with international conventions such as the Convention on Supplementary Compensation (CSC).
- Could help expand clean energy capacity, aiding climate commitments and energy security.
- Concerns and Criticisms
- Limited Compensation for Victims
- Liability cap may be insufficient for large-scale nuclear disasters.
- Supplier Immunity
- Removing the right of recourse creates moral hazard, reducing incentives for safety.
- Weak Regulatory Independence
- Reduced autonomy of AERB could compromise nuclear safety oversight.
- Safety Risks
- Past disasters show design defects and equipment failures often contribute to accidents.
- Economic Viability
- Nuclear power involves high capital costs and long gestation periods compared to renewable energy.
- Way Forward
- Strengthen independent nuclear safety regulation.
- Reconsider liability caps to ensure adequate compensation.
- Maintain accountability mechanisms for suppliers.
- Integrate nuclear expansion with broader energy transition strategy including renewables.
- Ensure transparent public oversight and safety audits.
UPSC Relevance:
- GS Paper II – Polity & Governance: Regulatory institutions, public safety laws.
- GS Paper III – Science & Technology / Energy: Nuclear energy policy, liability frameworks, energy security.