SHANTI Bills: India’s Second Shot at Nuclear Energy Leadership

Context:

  • India’s nuclear power programme has received renewed momentum through the proposed SHANTI Bills, aimed at reforming the nuclear liability framework and enabling greater private and foreign participation.
  • The move seeks to address long-standing concerns arising from India’s Civil Liability for Nuclear Damage Act, 2010, which has constrained nuclear expansion.

Key Highlights:

  • Background of Nuclear Liability Issue:
    • India’s 2010 nuclear liability law places supplier liability, unlike global norms.
    • This followed the Bhopal Gas Tragedy, reflecting strong public and political emphasis on victim compensation and accountability.
    • However, it discouraged foreign suppliers and private investors.
  • What are SHANTI Bills?:
    • A proposed legislative framework to rebalance liability, clarify compensation mechanisms, and align India with international nuclear norms.
    • Focus on risk-sharing, insurance-backed compensation, and legal certainty.
  • Institutional Reforms Proposed:
    • Enhanced role and statutory strength for the Atomic Energy Regulatory Board (AERB).
    • Clear separation of policy-making, regulation, and operation.
    • Strengthening safety oversight while enabling expansion.
  • Strategic Objectives:
    • Scale up clean, base-load nuclear power to meet climate commitments.
    • Enable Make in India in nuclear manufacturing and services.
    • Position India as a reliable nuclear power exporter in the long term.

Relevant Prelims Points:

  • Issue & Causes:
    • Slow nuclear capacity addition due to liability concerns.
    • Investor reluctance caused by open-ended supplier liability.
  • Key Laws & Institutions:
    • Civil Liability for Nuclear Damage Act, 2010.
    • Atomic Energy Regulatory Board (AERB).
    • Convention on Supplementary Compensation (CSC) – India is a signatory.
  • Benefits:
    • Faster nuclear capacity expansion.
    • Improved investor confidence.
    • Strengthening India’s clean energy mix.
  • Challenges:
    • Public trust deficit on nuclear safety.
    • Balancing victim compensation with commercial viability.

Relevant Mains Points:

  • Conceptual Clarity:
    • Nuclear liability: Legal responsibility for nuclear damage compensation.
    • Base-load power: Continuous power supply essential for grid stability.
    • Nuclear energy as a low-carbon transition fuel.
  • Governance & Policy Perspective:
    • Over-regulation can deter innovation; under-regulation risks safety.
    • SHANTI Bills attempt a middle path between accountability and growth.
    • Aligns with India’s net-zero by 2070 and energy security goals.
  • Way Forward:
    • Transparent public communication on nuclear safety.
    • Time-bound compensation and insurance mechanisms.
    • Capacity building of regulators and emergency response systems.
    • Gradual integration of private sector under strict oversight.

UPSC Relevance (GS-wise):

  • GS Paper II: Governance – Regulatory reforms, institutional accountability
  • GS Paper III: Energy security, nuclear energy, climate change
  • GS Paper IV: Ethics – Accountability, public safety, risk governance

 

 

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