SHANTI Bill, 2025: Opening India’s Nuclear Power Sector to Private Participation

Context:

  • The SHANTI Bill, 2025 was introduced in the Lok Sabha to enable private sector participation in the generation and operation of nuclear power plants.
  • The Bill seeks to replace the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010.
  • It aims to significantly expand India’s nuclear energy capacity in line with Viksit Bharat @2047 and Net-Zero 2070 commitments.

Key Highlights:

Government Initiative / Policy Details:

  • Ends the monopoly of Nuclear Power Corporation of India Ltd. (NPCIL) in operating nuclear plants.
  • Allows private entities to build, own, and operate nuclear power facilities under a regulated framework.
  • Confers statutory status on the Atomic Energy Regulatory Board (AERB), strengthening nuclear safety governance.

Capacity Expansion & Targets:

  • Installed nuclear capacity to increase from 8.8 GW (current) to 100 GW by 2047.
  • Aligns with India’s clean energy transition and long-term baseload power requirements.

Liability & Regulatory Changes:

  • Caps the maximum penalty on operators at ₹1 crore, even in cases of a “severe breach”.
  • Restricts the circumstances under which plant operators can seek compensation from equipment suppliers, modifying the earlier supplier liability regime.
  • Brings India’s nuclear liability framework closer to global liability conventions.

Technology & Innovation Push:

  • A ₹20,000 crore mission announced in the Union Budget for developing Small Modular Reactors (SMRs).
  • SMRs seen as scalable, safer, and suitable for private investment.

Stakeholders Involved:

  • Union Government
  • Private power producers
  • NPCIL
  • Atomic Energy Regulatory Board (AERB)
  • Equipment suppliers and technology partners

Relevant Prelims Points:

  • Issue: Limited nuclear capacity growth due to state monopoly and liability concerns.
  • Causes:
    • High capital costs
    • Restrictive liability regime under CLND Act, 2010
    • Slow pace of nuclear expansion
  • Government Initiatives:
    • SHANTI Bill, 2025
    • SMR Mission (₹20,000 crore)
  • Benefits:
    • Increased clean baseload power
    • Improved grid stability
    • Reduced dependence on fossil fuels
  • Challenges:
    • Nuclear safety risks
    • Concerns over dilution of liability
    • Public acceptance and environmental concerns
  • Impact:
    • Faster nuclear capacity addition
    • Greater private investment in strategic energy sector

Relevant Mains Points:

  • Facts & Provisions:
    • Repeals Atomic Energy Act, 1962 and CLND Act, 2010
    • Statutory backing to AERB
    • Liability cap for operators
  • Conceptual & Static Linkages:
    • Net-Zero 2070 strategy
    • Clean energy transition
    • Public–Private Partnership (PPP) in strategic sectors
  • Keywords:
    • Energy Security
    • Nuclear Safety
    • Baseload Power
    • Climate Commitments
  • Way Forward:
    • Strengthen independent regulatory oversight of AERB
    • Ensure robust safety standards despite private entry
    • Transparent public communication on nuclear risks
    • Balance investor confidence with environmental and public safety safeguards

UPSC Relevance (GS-wise):

  • GS II – Polity: Regulation of strategic sectors, statutory regulators
  • GS III – Economy: Infrastructure, energy security, private investment
  • GS III – Science & Technology: Nuclear technology, SMRs, clean energy transition
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