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SHANTI Bill spurs private sector to make, run nuclear plants

16 Dec 2025
2 min

SHANTI Bill Introduction

The Union Minister introduced the SHANTI Bill in Lok Sabha on December 15, 2025, aiming to incentivize private sector participation in nuclear power production by replacing India's existing laws with the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025.

Key Objectives of the SHANTI Bill

  • Regulatory Structure: Establishes an atomic energy regulatory structure answerable to Parliament.
  • Incentivizing Private Participation: Removes the Nuclear Power Corporation of India’s monopoly and provides a pragmatic framework for private sector involvement.
  • Civil Liability Framework: Proposes a revised civil liability framework for nuclear damage with specific liability limits.
  • Atomic Energy Regulatory Board (AERB): Confers statutory status and strengthens safety, security, and emergency preparedness mechanisms.

Privatization and Expansion

  • Current Contribution: Nuclear power constitutes 1.5% of installed capacity and 3% of electricity production in India.
  • Future Target: Plans to scale up nuclear power to 100 GW by 2047 from the current 8.8 GW.
  • Investment Plans: Includes a ₹20,000 crore mission for small modular reactors and customized 220 MW reactors.

Liability and Compensation

  • Existing Liability Laws: The CLND Act allows affected individuals to claim compensation up to ₹1,500 crore, involving the Centre up to ₹3,400 crore.
  • Changes in the SHANTI Bill: Removes the word 'supplier' and instances where operators can claim compensation from suppliers.
  • Operator Liability: Limits penalties based on plant size, with maximum penalties up to ₹1 crore for severe breaches.

Responses and Criticisms

Opposition MPs criticized the SHANTI Bill for concentrating power in the Centre and lacking institutional independence. There were calls to refer the Bill to a Standing Committee for further examination.

Historical Context and Challenges

  • 2010 CNLD Act: Faced opposition for not including strict supplier liability, drawing parallels to the 1984 Union Carbide incident.
  • Supplier Concerns: Issues with liability led to stalled contracts with foreign suppliers like the U.S.'s Westinghouse and France's Areva.
  • International Agreements: Despite civil nuclear agreements, concrete contracts with France, the U.S., and Japan have not materialized.
  • Current Operations: Russia is the sole supplier and operator of a nuclear plant in Kudankulam, under a pre-existing agreement.

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