Nuclear Power in India
Nuclear power contributed only around 3% of the electricity generated in India in 2024-25. The government aims to install 100 GW of nuclear capacity by 2047, including at least five indigenous small modular reactors by 2033.
SHANTI Bill Provisions
- Legal Framework: The SHANTI Bill proposes changes in legal permissions for building and operating civil nuclear facilities. It allows:
- The Centre to permit nuclear energy activities through licenses.
- Joint ventures and “any other company” to engage, under certain conditions.
- Domestic Focus: Indicates a focus on domestic private capital rather than foreign plant owners.
- Capital Mobilization: Large capital mobilization is necessary to meet the 100 GW target. Expanding operators to include non-government entities can share construction risks.
- Sensitive Fuel Cycles: Sensitive fuel cycles remain under state control, while private participation is encouraged in plant delivery and parts of the supply chain.
- Legal Clarity: The Bill aims to reduce legal ambiguity, streamline site approval and commissioning timelines, and lower transaction costs.
Concerns and Considerations
- Liability and Governance:
- The maximum operator liability for a nuclear incident is ₹3,000 crore.
- The Centre assumes liability beyond this cap if in the public interest.
- Insurance Requirements: Operators must maintain financial security, but Centre’s installations are exempt, necessitating clear public accounting.
- Operator Recourse: Dependent on contractual terms; supplier accountability varies across projects.
- Regulatory Independence: The bill vests significant appointment influence with the Centre, potentially affecting public trust and investor confidence.
