New Delhi: In a landmark decision, the Lok Sabha has approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, signaling a new era for private participation in India’s nuclear energy sector. The legislation replaces the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, updating the regulatory framework to accommodate modern energy needs.
The key provision of the bill allows Indian private companies to apply for licenses to construct nuclear power plants and reactors, a domain previously reserved exclusively for government entities such as the Nuclear Power Corporation of India. Union Minister Jitendra Singh explained that the legislation seeks to establish a practical civil liability mechanism in case of nuclear accidents and formally confer statutory authority to the Nuclear Energy Regulatory Board.
A notable feature of the SHANTI Bill is its approach to liability. Plant operators will bear responsibility for damages arising from nuclear incidents, while equipment suppliers are exempted. The maximum liability is capped at the equivalent of 300 million Special Drawing Rights (SDR), in line with international standards.
Depending on reactor size, operators must maintain insurance or liability funds ranging from $11 million to $330 million, with a special nuclear liability fund established to cover additional claims. Should damages exceed these limits, the government will intervene to ensure compensation.
Operators are not liable for:
• Damage to a nuclear facility still under construction
• Damage to other plants or associated properties at the same site
• Damage to transportation vehicles carrying nuclear materials at the time of the incident
These provisions aim to create a secure environment for private investment while balancing public safety considerations.
The bill faced criticism from opposition leaders. Congress MP Manish Tewari questioned the exemption of equipment suppliers from liability, raising concerns about accountability in case of technical failures. Tewari also highlighted potential conflicts of interest, pointing out that the Adani Group announced plans to enter the nuclear sector in late November, shortly before the government introduced the SHANTI Bill in December.
The passage of the legislation marks a significant policy shift, opening one of India’s most strategic sectors to private investment while introducing structured safeguards for civil liability, insurance, and regulatory oversight. Proponents argue it will accelerate nuclear energy capacity expansion and foster technological innovation, whereas critics caution about potential risks associated with rapid privatization of a sensitive sector.