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Act/Law

Sustainable Harnessing and Advancement of Nuclear Energy in India (SHANTI) Bill

What is Sustainable Harnessing and Advancement of Nuclear Energy in India (SHANTI) Bill?

The Sustainable Harnessing and Advancement of Nuclear Energy in India (SHANTI) Bill is a comprehensive legislation cleared by Parliament to open India's previously State-controlled nuclear power sector to private and foreign participation, aiming to boost energy security and expand nuclear power capacity.

Historical Background

India's nuclear power sector has been State-controlled since 1956, with private and foreign participation restricted under earlier laws like the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damages Act, 2010. The SHANTI Bill marks a significant departure from this historical policy, aiming to modernize and expand the sector.

Key Points

10 points
  • 1.

    Allows up to 49% private participation in nuclear power projects, with the government retaining 51% control.

  • 2.

    Ends the monopoly of Nuclear Power Corporation of India Limited (NPCIL) in plant operations.

  • 3.

    Attracts private capital for building, owning, and operating nuclear power plants.

  • 4.

    Maintains government control over sensitive aspects like fuel production and waste management.

  • 5.

    Grants Atomic Energy Regulatory Board (AERB) statutory status, making it answerable to Parliament and enhancing its regulatory oversight.

  • 6.

    Facilitates advanced nuclear technologies, including Small Modular Reactors (SMRs) and indigenous reactor designs.

  • 7.

    Aims to reduce dependence on fossil fuels and achieve net-zero targets by 2070.

  • 8.

    Fixes liability caps: ₹3,000 crore for large plants (3,600 MW), ₹1,500 crore for medium plants (1,500-3,600 MW), and ₹100 crore for SMRs (150 MW).

  • 9.

    Caps penalties for legal violations at ₹1 crore, with the Union government bearing liability beyond the operator's cap, supported by a nuclear liability fund.

  • 10.

    Criticized for diluting accountability by removing supplier liability, capping operator liability, and overriding the RTI Act 2005 and occupational safety laws.

Visual Insights

Evolution of India's Nuclear Policy & SHANTI Bill

This timeline traces the key legislative and policy milestones in India's nuclear energy sector, culminating in the SHANTI Bill, 2026, which marks a significant shift towards private participation.

India's nuclear power sector has historically been under strict state control due to strategic and security considerations. This timeline shows the gradual evolution of the legal and institutional framework, leading to the landmark SHANTI Bill which aims to modernize and expand the sector by inviting private capital while maintaining strategic control.

  • 1956India's nuclear program established; State-controlled policy begins.
  • 1962Atomic Energy Act, 1962 enacted; solidified government monopoly.
  • 1983Atomic Energy Regulatory Board (AERB) established.
  • 1987Nuclear Power Corporation of India Limited (NPCIL) established.
  • 2010Civil Liability for Nuclear Damages Act, 2010 enacted; aimed to address liability concerns.
  • 2019India's commitment to net-zero by 2070 gains momentum, increasing focus on clean energy.
  • 2024Atomic Energy Regulatory Board Act, 2024 passed (as part of SHANTI Bill framework).
  • 2025-2026SHANTI Bill cleared by Parliament; opens nuclear sector to private participation.

Recent Developments

5 developments

Parliament recently cleared the SHANTI Bill despite strong opposition, marking a major policy shift.

Aims to revive stalled civil nuclear deals with countries like the U.S., France, and Japan by addressing liability concerns.

Focus on developing Small Modular Reactors (SMRs) for decentralized power generation and faster deployment.

Part of India's broader strategy to achieve net-zero targets by 2070 and enhance energy security.

Ongoing debate on balancing the need for energy security and private investment with public safety and transparency.

Source Topic

SHANTI Bill: Unlocking India's Nuclear Sector for Private Participation

Science & Technology

UPSC Relevance

HIGH-YIELD topic for UPSC GS Paper 2 (Polity & Governance - legislative changes, regulatory bodies, transparency issues, federalism) and GS Paper 3 (Science & Technology - nuclear energy, SMRs; Economy - private participation, energy security, infrastructure development, PPP models). Relevant for both Prelims (facts, provisions, institutions) and Mains (analysis, pros & cons, policy implications, ethical considerations).

Evolution of India's Nuclear Policy & SHANTI Bill

This timeline traces the key legislative and policy milestones in India's nuclear energy sector, culminating in the SHANTI Bill, 2026, which marks a significant shift towards private participation.

1956

India's nuclear program established; State-controlled policy begins.

1962

Atomic Energy Act, 1962 enacted; solidified government monopoly.

1983

Atomic Energy Regulatory Board (AERB) established.

1987

Nuclear Power Corporation of India Limited (NPCIL) established.

2010

Civil Liability for Nuclear Damages Act, 2010 enacted; aimed to address liability concerns.

2019

India's commitment to net-zero by 2070 gains momentum, increasing focus on clean energy.

2024

Atomic Energy Regulatory Board Act, 2024 passed (as part of SHANTI Bill framework).

2025-2026

SHANTI Bill cleared by Parliament; opens nuclear sector to private participation.

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