India’s SHANTI Act Aligns Nuclear Liability with Global Regime, Authorizes Private Sector Entry into Atomic Energy

India’s Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 marks a historic shift in nuclear energy policy by allowing private sector participation, modernizing liability rules, and aligning India’s framework with international conventions. While it promises to boost nuclear capacity to 100 GW by 2047, experts warn of gaps in supplier liability and waste management that need urgent attention.

Key Highlights of the SHANTI Act, 2025

• Private Sector Entry: Private companies can set up nuclear facilities or engage in nuclear energy activities under licenses from the Central Government and safety authorization from the Atomic Energy Regulatory Board (AERB).
• Civil Liability Framework:
  • Operator liability ranges from ₹100 crore to ₹3,000 crore, depending on facility type.
  • Strict no-fault liability ensures prompt compensation by operators.
  • Government liability capped at 300 million SDR (~₹3,000 crore).
  • Beyond this, India can access funds under the Convention on Supplementary Compensation (CSC).
• Regulatory Oversight: AERB enforces safety standards, conducts inspections, and mandates corrective measures for deviations.
• Incident Reporting: Licensees must report nuclear incidents, and AERB must recommend government notification within 15 days.

Strategic Goals

• Energy Transition: India aims to raise nuclear power’s share from 6% to 20% of the energy mix, targeting 100 GW capacity by 2047.
• Clean Energy Push: Nuclear energy is positioned as a critical pillar in India’s decarbonization strategy, complementing renewables.
• Global Alignment: Liability provisions are harmonized with international norms, strengthening India’s credibility in nuclear commerce.

Concerns & Criticisms

• Supplier Liability Gap: The Act does not explicitly provide operators the “right to recourse” against suppliers for faulty equipment, raising accountability concerns.
• Waste Management: Calls for a robust radioactive waste policy before licensing private firms.
• Transparency: Demands for third-party audits of reactor suppliers and public disclosure of inspection results.

International Dimension

• India–US Collaboration: The Act has opened doors for deeper civil nuclear cooperation with the US, accelerating technology transfer and investment.
• Global Nuclear Market: By aligning liability norms with CSC, India strengthens its position as a reliable partner in international nuclear projects.

Conclusion

The SHANTI Act, 2025 is a transformative milestone in India’s nuclear journey—balancing private participation, safety, and liability. However, supplier accountability and waste management remain unresolved challenges. Addressing these will be crucial for building public trust and ensuring that nuclear energy becomes a safe, sustainable backbone of India’s energy future.