Context:
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India’s nuclear power sector remains a small contributor to the national energy mix, providing only about 3% of electricity in 2024–25.
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To meet rising energy demand and climate goals, the government has set an ambitious target of achieving 100 GW nuclear capacity by 2047.
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The proposed SHANTI Bill is positioned as a major reform step to enable private sector participation in civil nuclear energy while retaining strategic state control.
Key Highlights:
Government Initiative / Policy Details
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The SHANTI Bill proposes expanding the range of entities allowed to build and operate nuclear facilities, including:
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Government entities
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Joint ventures
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Private companies
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Capacity Targets and SMR Focus
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India aims to reach:
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100 GW nuclear power capacity by 2047
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At least five indigenous Small Modular Reactors (SMRs) by 2033
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Liability and Risk Framework
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The Bill caps operator liability for a nuclear incident at ₹3,000 crore, raising concerns about adequacy.
Safety and Governance Consolidation
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SHANTI seeks to bring safety regulation, enforcement, dispute resolution, and participation rules into a single comprehensive statute, reducing:
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Legal ambiguities
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Transaction costs
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Approval delays for new entrants
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Stakeholders Involved
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Central Government
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Atomic Energy Commission (AEC)
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Potential domestic private investors
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Nuclear suppliers and operators
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Citizens affected by nuclear safety outcomes
Significance / Concerns
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While the Bill could unlock investment, issues persist regarding:
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Victim compensation adequacy
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Environmental remediation
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Regulatory independence
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Supplier accountability consistency
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Relevant Prelims Points:
Issue + Causes + Government Initiatives
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Issue: Need to scale nuclear power for energy security and clean transition.
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Causes:
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Low current nuclear share (~3%)
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High capital costs and construction risks
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Limited participation due to liability concerns
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Government Initiative:
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SHANTI Bill to enable broader participation and meet the 100 GW by 2047 target.
Benefits
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Diversifies construction risk through private capital.
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Promotes indigenous innovation via SMRs.
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Strengthens India’s low-carbon baseload power capacity.
Challenges
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Liability cap may be insufficient for major accidents.
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Centre’s installations exempt from mandatory insurance → accountability concerns.
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Supplier liability depends on contracts, leading to uneven recourse.
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Governance structure may reduce regulator independence.
Impact
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Could accelerate nuclear capacity addition but must ensure strong safety and trust mechanisms.
Relevant Mains Points:
Facts, Provisions, Definitions
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SMRs (Small Modular Reactors): Smaller, factory-built, transportable reactors enabling quicker deployment.
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Nuclear Proliferation: Spread of nuclear weapons/materials beyond recognized nuclear states.
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Atomic Energy Commission: Apex body overseeing nuclear development in India.
Policy and Governance Dimensions
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SHANTI attempts a balance:
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Private participation in delivery and supply chains
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State control over sensitive fuel cycles to prevent proliferation
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Liability Debate
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Operator liability capped at ₹3,000 crore raises ethical and legal questions about:
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Victim compensation
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Long-term environmental costs
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Regulatory Independence
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Heavy Centre influence in appointments could weaken investor confidence and safety credibility.
Way Forward
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Ensure stronger and transparent insurance mechanisms.
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Create uniform supplier accountability norms.
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Strengthen independence of nuclear regulators.
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Expand SMR R&D while maintaining strict non-proliferation safeguards.
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Balance investment needs with public safety and environmental justice.
UPSC Relevance (GS-wise):
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GS 3 (Science & Technology): Nuclear energy, SMRs, clean energy transition
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GS 2 (Polity): Liability law, governance, regulator independence
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GS 3 (Economy): Private investment, infrastructure expansion, energy security