SHANTI BILL TO CATALYSE PRIVATE SECTOR ROLE IN NUCLEAR POWER PLANTS

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Context

The Union Government has introduced the Sustainable Harnessing and Advancement of Nuclear energy for Transforming India (SHANTI) Bill 2025 in Lok Sabha.

What is SHANTI Bill?

The Union Government introduced the SHANTI Bill (Atomic Energy Bill, 2025) to reform the nuclear energy sector.

It aims to modernize the legal framework by replacing the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, with a single, unified law.

Why is a Policy Shift Needed?

Outdated legal frameworks have limited India's nuclear sector growth; the proposed reform seeks to address these issues.

Ambitious Climate & Energy Targets

• Net-Zero Goal: To achieve net-zero emissions by 2070 as part of the 'Panchamrit' commitments.
• Non-Fossil Fuel Capacity: To install 500 GW of non-fossil fuel electricity capacity by 2030.
• Nuclear Capacity Expansion: To increase nuclear capacity from the current 8.8 GW to 22.48 GW by 2031, with an ambitious vision for 100 GW by 2047.

Rising Electricity Demand: India's rising electricity demand, driven by growth and industrialization, needs nuclear power's reliable, 24/7 baseload to complement intermittent solar and wind.

Limitations of Existing Framework

• The Atomic Energy Act, 1962, established a state monopoly, limiting nuclear power generation to government entities (NPCIL, BHAVINI). This restricted funding and delayed capacity expansion.
• The Civil Liability for Nuclear Damage (CLND) Act, 2010, particularly its supplier liability (Section 17b), created uncertainty, deterring foreign technology and investment.

Key Proposed Changes in the SHANTI Bill

The Bill proposes replacing the Atomic Energy Act, 1962, and the CLND Act, 2010, with a single, modern legal framework.

Private Sector Participation

Allows private companies (Indian & foreign) to set up and operate nuclear power plants, with a proposed equity cap of up to 49% in joint ventures.

Scope of Private Involvement

Opens up project development, construction, operations, fuel fabrication, and equipment manufacturing. Focus on promoting innovation in Small Modular Reactors (SMRs).

Continued State Control

Strategic areas like uranium enrichment, heavy water production, and spent fuel management remain under the exclusive control of the Department of Atomic Energy (DAE).

Regulatory Framework

Confers statutory status on the Atomic Energy Regulatory Board (AERB) to strengthen its independence, authority, and oversight capabilities.

Civil Liability Regime

Proposes a "pragmatic" liability framework, channeling responsibility to the operator, to align with global norms and resolve the supplier liability issue hindering international cooperation.

Source: ECONOMICTIMES