Why in news?

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, passed by Parliament, marks a fundamental shift in India’s nuclear power regime by allowing private players to participate in nuclear power plant operations.

Once notified, the law will replace the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, redefining rules on who can build and operate nuclear plants, how accident liability is capped, the role of the safety regulator, and mechanisms for dispute resolution and compensation.

The Centre argues that the reform is essential to attract investment and achieve India’s target of 100 GW of nuclear capacity by 2047.

What’s in Today’s Article?

• Private Sector Entry into India’s Nuclear Power Sector under SHANTI Bill, 2025
• Question of Accountability under the SHANTI Bill, 2025
• SHANTI Bill and the Transparency Challenge

Private Sector Entry into India’s Nuclear Power Sector under SHANTI Bill, 2025

• The SHANTI Bill allows both public and private companies to set up nuclear power plants.
• They can engage in activities such as the transport, storage, import and export of nuclear fuel, technology, equipment and minerals—areas earlier reserved exclusively for public sector entities.
• Strict Safety and Regulatory Oversight
  • Despite opening the sector, the law retains a stringent safety regime.
  • All entities must obtain mandatory safety authorisation from the Atomic Energy Regulatory Board (AERB).
  • Authorisation is required for the manufacture, possession, use, transport, import, export and disposal of radioactive substances, radiation-generating equipment, and for establishing, operating or decommissioning radiation facilities.
• Foreign Investment: Conditional and Indirect
  • The Bill does not explicitly permit foreign direct investment in nuclear power.
  • Section 3(e) allows participation by “any other person” expressly permitted by the Central Government through notification.
  • Detailed clarity is expected through subsequent rules, with government sources indicating alignment with DPIIT foreign equity guidelines applicable across sectors.
• Activities Reserved for the Central Government
  • Certain critical and sensitive functions remain under exclusive central control, including:
    • Enrichment and isotopic separation of radioactive substances
    • Reprocessing and management of spent fuel and high-level radioactive waste
    • Production and upgradation of heavy water

Question of Accountability under the SHANTI Bill, 2025

• The Opposition has raised concerns—particularly over the dilution of provisions fixing liability on equipment suppliers in the event of a nuclear accident.
• Removal of Supplier Liability (‘Right of Recourse’)
  • A major and contentious change in the SHANTI Bill is the dilution of the operator’s “right of recourse” against equipment suppliers in the event of a nuclear accident.
  • Under Section 17 of the Civil Liability for Nuclear Damage Act (CLNDA), 2010, operators could seek compensation from suppliers if an accident resulted from defective equipment, sub-standard services, or supplier negligence.
  • The new law retains:
    • Contractual recourse if explicitly provided in writing; and
    • Personal criminal liability for acts done with intent to cause nuclear damage.
  • However, it omits the provision covering supplier fault due to patent or latent defects, shielding equipment vendors from long-term and uncertain liability exposure.
• Shift to Graded Liability Caps
  • The SHANTI Bill departs from the earlier flat liability cap of ₹1,500 crore for reactors of 10 MW thermal capacity or above.
  • It introduces graded liability caps, linked to the size and capacity of nuclear installations, aiming to better reflect varying risk profiles.
• Insurance and Financial Security
  • The obligation to maintain insurance or other financial security to cover nuclear liability applies only to private operators.
  • Central government–owned installations are exempt from this requirement.
  • However, the law authorises the Centre to create a Nuclear Liability Fund to meet its compensation obligations in the event of a nuclear incident.
• Strengthened Penalty Framework
  • The SHANTI Bill introduces a two-tier penalty system:
    • Monetary penalties for less serious violations (a provision absent in earlier laws).
    • Imprisonment for grave offences, reinforcing accountability and deterrence.

SHANTI Bill and the Transparency Challenge

• The SHANTI Bill, 2025 has sparked concern for explicitly overriding the Right to Information (RTI) Act, 2005 through Section 39.
• This provision allows the Central government to declare wide categories of nuclear-related information as “restricted”, including data on nuclear materials, plant design, operations, siting, and regulatory submissions.
• Once notified, such information is completely exempt from disclosure under the RTI Act, as Section 39 applies “notwithstanding anything” in the RTI law.
• How This Differs from Existing RTI Exemptions?
  • The RTI Act already permits withholding sensitive information related to national security, strategic interests, commercial confidence, and personal data.
  • Crucially, these exemptions are conditional, subject to justification, appeals, and a public interest override under Section 8(2).
• Why Section 39 Raises Red Flags?
  • Section 39 removes these safeguards entirely. There is no balancing test, appeal mechanism, or scope for public interest review.
  • Critics warn this could institutionalise secrecy, weaken accountability, deter whistleblowing, and limit independent scrutiny—especially significant as private players enter the nuclear sector.