Context:
The proposed SHANTI Bill marks a structural shift in India’s nuclear energy framework, moving away from a long-standing state monopoly towards controlled private and foreign participation. The reform is positioned as a tool to enhance energy security, support net-zero goals, and reduce reliance on fossil fuels and imports.
Key Highlights:
- Policy & Structural Changes
- Opens India’s nuclear power sector — state-controlled since 1956 — to private and foreign investment.
- Allows up to 49% private participation, while the government retains 51% control over sensitive nuclear activities.
- Ends the operational monopoly of Nuclear Power Corporation of India Limited (NPCIL), enabling private companies and joint ventures to build and operate nuclear plants.
- Regulatory & Governance Reforms
- Grants statutory status to the Atomic Energy Regulatory Board (AERB), making it answerable to Parliament.
- Strengthens oversight of nuclear safety, radiation protection, and emergency preparedness, critical with private sector entry.
- Liability & Safety Framework
- Fixes operator liability caps:
- ₹3,000 crore for large plants
- ₹1,500 crore for medium plants
- ₹100 crore for Small Modular Reactors (SMRs)
- Establishes a Nuclear Liability Fund, with the government bearing liability beyond operator caps.
- Strategic activities like spent fuel reprocessing, enrichment, and heavy water production remain under government control.
- Technology & Energy Transition
- Facilitates deployment of advanced reactor technologies, including SMRs and indigenous designs.
- Supports India’s net-zero by 2070 commitment by expanding clean baseload power.
Concerns & Criticism:
- Opposition argues the Bill dilutes accountability by limiting liability and removing supplier liability.
- Section 39 is criticised for overriding the RTI Act, reducing transparency.
- Section 42 allegedly weakens occupational safety norms, drawing resistance from trade unions.
Relevant Prelims Points:
- SMRs: Smaller, scalable nuclear reactors with flexible deployment.
- AERB: Nuclear safety regulator, now with statutory backing.
- Nuclear Liability Fund: Compensation mechanism for nuclear accidents.
Relevant Mains Points:
- Economy: Mobilises private capital for high-cost nuclear infrastructure.
- Science & Technology: Accelerates advanced nuclear technologies.
- Polity & Governance: Raises questions on transparency, accountability, and federal oversight.
- International Relations: May revive stalled civil nuclear deals with the U.S., France, and Japan, reducing dependence on Russia.
- Way Forward:
- Balance investment facilitation with robust safety and transparency norms.
- Ensure Parliamentary oversight of the regulator is effective.
- Address public and labour concerns to build social legitimacy for nuclear expansion.
UPSC Relevance:
- GS 3: Energy security, clean energy transition
- GS 2: Regulatory institutions, accountability
- Prelims: Nuclear governance, SMRs