Context:
India has enacted the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, marking a major shift in the governance of the nuclear energy sector. The Act repeals the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010, with the stated aim of attracting private and foreign investment to help India scale up nuclear power generation for long-term energy security.
Key Highlights:
Major Legislative Overhaul:
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SHANTI Act replaces earlier frameworks that restricted nuclear power generation largely to public sector enterprises.
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Intended to open the sector to:
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Private participation
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Foreign reactor manufacturers
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Increased capital inflows into nuclear infrastructure
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India’s Nuclear Expansion Targets:
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India aims to raise nuclear capacity from 8.8 GW to 100 GW by 2047.
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Nuclear power currently contributes only about 3% of India’s electricity generation.
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Expansion is seen as essential for:
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Low-carbon transition
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Energy security
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Baseload power supply
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Changes in Nuclear Accident Liability & Compensation:
Easing Supplier Liability:
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SHANTI removes the earlier provision allowing operators to seek recourse from equipment suppliers after an accident.
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This clause under CLND Act had deterred participation by major foreign vendors such as:
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U.S. reactor firms
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French manufacturers
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Its removal aligns India closer to international nuclear liability norms.
Graded Compensation Structure:
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SHANTI introduces a graded penalty cap based on plant capacity:
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From ₹100 crore (small plants)
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Up to ₹3,000 crore (large plants)
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Aims to reduce investor uncertainty and attract private operators.
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However, concerns remain whether such caps are sufficient to cover real disaster reparations.
Strategic Vision vs Practical Challenges:
Three-Stage Nuclear Programme and Thorium Goal:
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India’s nuclear vision, pioneered by Homi Bhabha, is based on using abundant thorium reserves.
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India is still largely in the first stage (Pressurised Heavy Water Reactors).
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Key delays persist, such as the Fast Breeder Reactor, now expected by September 2026.
Small Modular Reactors (SMRs):
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India is exploring SMRs to expand nuclear power quickly.
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However, SMRs rely on enriched uranium-235, not thorium.
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Thus, SMRs may not directly advance India’s long-term thorium-based fuel cycle.
Debates and Concerns:
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Supporters argue SHANTI will:
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Unlock investments
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Accelerate capacity addition
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Support clean energy transition
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Critics caution against:
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Dilution of supplier accountability
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Insufficient compensation for victims
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Overdependence on imported technology
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Relevant Prelims Points:
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SHANTI Act: New law restructuring India’s nuclear sector.
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Repeals: Atomic Energy Act (1962), CLND Act (2010).
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Supplier Liability: Responsibility of suppliers in case of accident (now eased).
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Fast Breeder Reactor: Produces more fissile fuel than it consumes.
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Thorium: Key to India’s long-term nuclear fuel strategy.
Relevant Mains Points:
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Keywords & Conceptual Clarity:
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Energy Security, Low-Carbon Transition, Nuclear Liability Regime, Private Sector Participation
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Governance Perspective:
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Balancing investor confidence with public safety and accountability.
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Way Forward:
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Strengthen independent nuclear regulation
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Ensure robust disaster compensation mechanisms
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Accelerate thorium fuel cycle research
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Maintain transparency and public trust in nuclear expansion
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UPSC Relevance (GS-wise):
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GS 2: Polity, legislation, governance of strategic sectors
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GS 3: Nuclear energy, economic investment, clean energy transition
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Prelims: Thorium, breeder reactors, nuclear liability frameworks