SHANTI Bill and the Nuclear Landscape in India

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Introduction

India’s nuclear power sector has remained largely State-controlled since 1956, driven by strategic, safety, and technological considerations. With rising energy demand, climate commitments, and limits of renewable energy, Parliament’s passage of the Sustainable Harnessing and Advancement of Nuclear Energy in India (SHANTI) Bill marks a major shift in India’s nuclear governance, opening the sector to private and limited foreign participation while retaining government control over critical areas.

India’s Nuclear Landscape: A Brief Overview

Current Status

  • India operates 25 nuclear reactors across 7 nuclear power plants.

  • Reactor types:

    • 21 Pressurised Heavy Water Reactors (PHWRs) – indigenously developed.

    • 4 Light Water Reactors (LWRs) – with foreign collaboration.

  • All plants are operated by the Nuclear Power Corporation of India Limited (NPCIL).

  • Nuclear power contributes a small but stable share of India’s electricity mix, providing baseload power (continuous electricity unlike solar or wind).

Three-Stage Nuclear Programme

India follows an indigenous three-stage nuclear programme:

  1. PHWRs using natural uranium

  2. Fast Breeder Reactors using plutonium

  3. Thorium-based reactors, leveraging India’s large thorium reserves

This makes India relatively self-reliant in nuclear technology.

What is the SHANTI Bill?

The SHANTI Bill, 2025 is an overarching law that liberalises India’s civilian nuclear power sector.

Key Features

  • Allows private Indian companies to:

    • Own, build, and operate nuclear power plants.

  • Permits foreign supplier participation, but not explicit Foreign Direct Investment.

  • Caps private participation at 49%, with 51% government control over:

    • Nuclear fuel production

    • Heavy water manufacture

    • Waste management

    • Safety systems

    • Licensing and strategic oversight

  • Ends the operational monopoly of NPCIL.

  • Promotes Public-Private Partnership (PPP) models.

  • Supports Small Modular Reactors (SMRs) and advanced reactor technologies.

  • Backed by a ₹20,000 crore Nuclear Energy Mission.

Small Modular Reactors (SMRs) are compact nuclear reactors (usually under 300 MW) that:

  • Are quicker to build

  • Require less capital

  • Are suitable for remote or industrial areas

Role of the Atomic Energy Regulatory Board (AERB)

What Changed?

  • The Atomic Energy Regulatory Board (AERB) has been given statutory status.

  • It is now answerable to Parliament, not only the executive.

Functions

  • Ensures nuclear safety and radiation protection

  • Licenses nuclear facilities

  • Conducts inspections

  • Oversees emergency preparedness

This becomes crucial as private participation increases, though critics fear excessive concentration of power in one regulator.

Safeguards Under the SHANTI Bill

  • Government retains control over:

    • Spent fuel reprocessing

    • High-level radioactive waste

    • Enrichment and isotopic separation

  • All private operators require AERB authorisation.

  • A Nuclear Liability Fund is proposed to support compensation in case of accidents.

Liability Regime: What Has Changed?

Earlier Framework (Civil Liability for Nuclear Damage Act, 2010)

  • Operators could seek recourse against suppliers.

  • This discouraged foreign companies.

Under the SHANTI Bill

  • Supplier liability is completely removed.

  • Liability caps:

    • ₹3,000 crore for large plants (3,600 MW)

    • ₹1,500 crore for medium plants

    • ₹100 crore for Small Modular Reactors

  • Beyond this cap, Union Government bears liability.

Key Concern

  • Caps do not account for inflation or long-term damage.

  • Real-world disasters like Fukushima and Chernobyl show costs running hundreds of times higher than liability limits.

Government’s Rationale

The Centre argues that the Bill:

  • Enhances energy security

  • Provides reliable baseload power

  • Reduces dependence on coal and fuel imports

  • Supports Net Zero target by 2070

  • Revives stalled civil nuclear cooperation with countries like the United States, France, and Japan

  • Strengthens India’s position as a responsible nuclear power

Why Nuclear Energy is Important for India

  • Renewable energy faces challenges of:

    • Storage

    • Grid stability

    • Geographic dependence

  • Coal still dominates electricity generation.

  • Nuclear energy:

    • Is low-carbon

    • Provides continuous power

    • Supports industrial growth and urbanisation

Opposition’s Criticism

1. Dilution of Accountability

  • Private firms earn profits, while State bears accident liability.

  • Violates the polluter pays principle.

2. Public Safety Concerns

  • Liability caps are seen as grossly inadequate.

  • Penalties capped at ₹1 crore even for severe violations.

3. Transparency Issues

  • Section 39 overrides the Right to Information Act, 2005.

  • Critical nuclear information becomes “restricted”.

  • Undermines public oversight and accountability.

4. Labour and Worker Safety

  • Section 42 excludes nuclear workers from general labour safety laws.

  • Strong opposition from trade unions.

5. Democratic Deficit

  • No mandatory:

    • Public hearings

    • Environmental Impact Assessment disclosures

    • Community consent mechanisms

    • Parliamentary oversight committees

6. International Comparison

  • Countries like France retain full government ownership of nuclear plants.

  • Opposition argues India is already technologically self-reliant and should not be vendor-driven.

Overall Assessment

Pros

  • Boosts nuclear capacity and investment

  • Encourages advanced technologies like SMRs

  • Strengthens regulatory clarity

  • Supports clean energy transition

Cons

  • Weakens liability and accountability

  • Shifts risk from private operators to the public

  • Reduces transparency and worker protections

  • Raises long-term safety and ethical concerns

Way Forward

  • Reintroduce limited supplier liability for gross negligence.

  • Periodic revision of liability caps linked to inflation and risk assessment.

  • Restore RTI-based public interest safeguards.

  • Mandate public consultations and environmental disclosures.

  • Strengthen Parliamentary oversight of the nuclear sector.

  • Ensure private participation complements, not replaces, India’s indigenous nuclear programme.

Conclusion

The SHANTI Bill represents a historic shift in India’s nuclear policy, driven by energy security and climate goals. However, nuclear power is not merely an economic sector but a high-risk public good. Balancing investment, safety, accountability, and transparency will determine whether the Bill strengthens India’s nuclear future or transfers disproportionate risk to society. A cautious, people-centric approach is essential for sustainable nuclear expansion.

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