Privatisation of nuclear power sector : SHANTI bill
Introduction
The Lok Sabha passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, enabling private (Indian and foreign) participation in nuclear power generation. The Bill amends the existing nuclear liability framework and is aligned with India’s long-term clean energy and net-zero commitments.
Key provisions of the SHANTI Bill
1. Entry of private sector in nuclear power
Allows private and foreign companies to participate in nuclear power production.
Marks a shift from the earlier state-dominated nuclear sector (NPCIL-centric model).
2. Amendment to Civil Liability for Nuclear Damage Act, 2010
Removes the supplier liability clause.
Earlier provision allowed plant operators to claim recourse from suppliers if defective equipment caused a nuclear accident.
Removal aimed at reducing liability concerns of foreign suppliers.
3. Liability framework
Operator liability capped at ₹3,000 crore.
Additional compensation mechanisms:
Nuclear Insurance Pool
Proposed Nuclear Liability Fund, pooled through tariffs
Government defends this as a graded liability model to attract investment.
4. Focus on new nuclear technologies
Emphasis on:
Small Modular Reactors (SMRs)
220 MW Pressurised Heavy Water Reactors
Bharat Small Modular Reactors
₹20,000 crore Nuclear Mission announced in Union Budget.
Rationale
India’s nuclear power:
~1.5% of installed capacity
~3% of electricity generation
Targets:
100 GW nuclear capacity by 2047 (from 8.8 GW currently)
Net-zero emissions by 2070
Government argument:
Technological advances (SMRs) reduce catastrophic risk.
Liability regime of 2010 no longer suited to current technological realities.
Necessary to improve grid stability and clean baseload power.
Concerns
1. Supplier liability removal
Weakens accountability of foreign equipment suppliers.
Contradiction with BJP’s earlier stance during UPA period.
Raises safety and public interest concerns.
2. Liability cap questioned
₹3,000 crore cap termed inadequate.
Comparisons cited:
Fukushima cleanup: ~$182 billion
Chernobyl impact: ~$700 billion
Liability cap unchanged for 15 years, ignoring inflation and global experience.
3. Corporate influence allegations
Questions raised on timing of Bill and interest shown by major conglomerates.
Government rejected allegations as baseless.
4. Foreign pressure narrative
Allegations of easing norms to attract foreign investment amid global trade pressures.
Prelims Practice MCQs
Q. With reference to the SHANTI Bill, 2025, consider the following statements:
It allows both Indian and foreign private companies to participate in nuclear power generation.
It retains the supplier liability clause of the Civil Liability for Nuclear Damage Act, 2010.
It proposes Small Modular Reactors as part of India’s nuclear expansion.
Which of the statements given above are correct?
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (a)
Explanation:
Statement 2 is incorrect as the Bill removes supplier liability. Statements 1 and 3 are correct.
Q. The operator liability cap under India’s nuclear liability framework, as retained under the SHANTI Bill, is:
(a) ₹1,500 crore
(b) ₹3,000 crore
(c) ₹5,000 crore
(d) ₹10,000 crore
Answer: (b)
Explanation:
The Bill retains the operator liability cap at ₹3,000 crore, supplemented by insurance and a proposed liability fund.
Q. Which of the following objectives are cited by the government for expanding nuclear energy capacity?
Achieving net-zero emissions by 2070
Improving grid stability
Replacing renewable energy sources
Select the correct answer using the code below:
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (a)
Explanation:
Nuclear energy is projected as complementary to renewables, not a replacement.