The SHANTI Bill, 2025 is a landmark nuclear energy reform that overhauls India’s legal framework, opens the sector to regulated private participation, and will be a high‑probability topic for upcoming civil services exams in GS‑2, GS‑3, Prelims (Polity + Economy + Environment), Essay and Interview.
Background and Context
- SHANTI stands for Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India, and it replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act (CLND), 2010 with a single comprehensive law for civil nuclear energy.
- The Bill is driven by India’s long‑term goals: achieving about 100 GW of nuclear power capacity by 2047, reducing coal dependence, and meeting clean‑energy / net‑zero commitments while ensuring energy security.
- It comes in the backdrop of funding constraints on fully state‑driven nuclear expansion, global interest in Small Modular Reactors (SMRs), and long‑standing investor concerns over India’s nuclear liability regime, especially supplier liability.
Key Objectives (Exam Lens)
- Strengthen energy security by expanding reliable baseload nuclear power as a complement to renewables, reducing import dependence on fossil fuels.
- Support climate commitments and India’s net‑zero trajectory by scaling low‑carbon nuclear energy alongside solar, wind and hydro.
- Mobilise private and foreign investment to overcome resource constraints of the public sector, accelerate project execution, and bring in advanced technologies including SMRs.
- Create a unified legal and regulatory framework to enhance investor confidence, streamline approvals and modernise nuclear governance.
Major Provisions (With Data and Details)
- Unified nuclear law: Repeals the Atomic Energy Act, 1962 and CLND Act, 2010, consolidating licensing, safety, liability and regulation into one statute tailored to current and future energy needs.
- Opening to private sector:
- Licences for building, owning, operating and decommissioning nuclear power plants can now be granted to Indian private companies, joint ventures and other permitted entities, ending NPCIL’s operational monopoly.
- Private participation is also envisaged across atomic mineral exploration, fuel fabrication, and equipment manufacturing under regulatory oversight.
- Foreign participation structure: Foreign entities are generally expected to participate through Indian‑incorporated joint ventures, supplier roles and technology partnerships, not as direct sole operators—addressing sovereignty and security concerns.
- Tiered liability framework:
- Introduces graded operator‑liability caps in the range of about ₹100 crore to ₹3,000 crore depending on reactor capacity; liability beyond this is to be borne by the central government.
- Requires compulsory insurance coverage, typically via the Indian Nuclear Insurance Pool; some analyses point to insurance requirements around ₹1,500 crore per incident for operators.
- Removes the contentious supplier liability provisions of the earlier regime (Section 17(b)/Section 46‑type exposure under CLND), which had deterred several global vendors.
- Regulation and safety:
- Grants statutory backing or strengthened status to the nuclear safety regulator (AERB/independent nuclear safety authority), with clearer powers over licensing, inspections and enforcement, in coordination with IAEA standards.
- Proposes a specialised nuclear tribunal for speedy resolution of nuclear‑related disputes and compensation claims.
- Scope limitation & strategic control:
- Sensitive activities such as uranium enrichment, spent‑fuel management, reprocessing, heavy‑water production and core strategic operations remain reserved for the central government and its entities.
- The government retains powers over policy, tariffs of nuclear electricity, acquisition of land/materials, and novation of contracts in the nuclear domain.
- Technology push (SMRs, advanced reactors):
- Explicitly encourages deployment of Small Modular Reactors, advanced reactor designs and new applications (industrial decarbonisation, captive power, hydrogen, desalination etc.).
- Aligns with India’s three‑stage nuclear programme and long‑term utilisation of thorium resources.
Implications and Criticisms (GS‑2 / GS‑3 Angle)
- Positive implications:
- Can accelerate capacity growth towards the 100 GW nuclear target by 2047 and diversify the energy mix, aiding climate and energy‑security goals.
- Private capital and project‑management expertise may help shorten gestation periods, reduce cost overruns, and improve technology absorption (especially SMRs).
- A clearer liability regime and removal of supplier‑liability ambiguity can unlock long‑pending international cooperation and investments.
- Concerns and criticisms:
- Fears of safety dilution and regulatory capture if the safety authority is not fully independent, transparent and well‑resourced; critics demand stronger parliamentary and public oversight.
- Civil society groups and some opposition voices argue that shifting more liability to the state and eliminating supplier liability may weaken victim compensation and corporate accountability in the event of an accident.
- Opening nuclear activities to private entities raises concerns over nuclear security, proliferation risks, and long‑term waste management in a context of still‑evolving institutional capacity.
Linkages to UPSC Syllabus (How to Use in Answers)
- Prelims:
- Static‑plus‑current linkages: features of the SHANTI Bill, role of AERB/regulator, three‑stage nuclear programme, SMRs, nuclear liability basics, institutional changes (tribunal, unified law).
- Polity‑economy‑environment convergence: government companies vs private players, FDI norms in nuclear, nuclear as clean energy, climate targets and 100 GW by 2047.
- Mains (GS‑2):
- Government policies and interventions, legislative reforms, Centre–regulator relationship, issues of accountability and safety, role of Parliament in scrutinising high‑risk sectors.
- Mains (GS‑3):
- Energy security, infrastructure, science & technology, environment and disaster management — balancing nuclear expansion with safety, liability, public trust, and long‑term waste management.
- Essay / Ethics / Interview:
- Themes like “Science, technology and responsibility”, “Balancing development with risk”, “Public–private partnership in strategic sectors”, and “Trust in institutions and risk communication”.
Value‑Addition Points and Surrounding Data
- India’s current nuclear installed capacity is only a small fraction of total power capacity, making nuclear one of the least utilised major low‑carbon options despite high load factor potential.
- The Bill is part of a broader reform cycle: large renewable‑energy targets, green hydrogen mission, transmission corridors, and efforts to modernise regulatory institutions in the power sector.
- Global trend: many countries are revisiting nuclear energy for net‑zero pathways, SMR development, and energy‑security concerns post‑geopolitical tensions; situating SHANTI within this global context strengthens higher‑level answers.
Practice Questions for UPSC Prelims
1. With reference to the SHANTI Bill, 2025, consider the following statements:
1. It seeks to replace both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.
2. It allows private entities to build and operate nuclear power plants in India under a licensing framework.
3. It retains statutory supplier liability for nuclear accidents at the same level as under the CLND Act, 2010.
Which of the statements given above is/are correct?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
(Correct answer: (a); statement 3 is incorrect because the Bill removes/softens supplier‑liability provisions and revises the liability framework.)
2. In the context of India’s nuclear energy policy, which of the following is/are features of the SHANTI Bill, 2025?
1. Introduction of a tiered operator‑liability cap linked to reactor capacity.
2. Creation of a specialised tribunal for nuclear‑related disputes.
3. Reservation of uranium enrichment and reprocessing activities exclusively for the Central Government or its entities.
Select the correct answer using the code given below:
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
(Correct answer: (d)) [11][8][5]
Practice Questions for UPSC Mains
1. GS‑2 / GS‑3 (250 words):
“The SHANTI Bill, 2025 marks a paradigm shift in India’s civil nuclear framework by opening the sector to private participation while revising the liability and regulatory architecture.” Discuss how far the Bill balances energy security, investment needs and public safety.
2. GS‑3 (250 words):
Nuclear energy is often described as both an opportunity and a risk in India’s path to a low‑carbon, secure energy future. Critically analyse this statement in the light of the key provisions and criticisms of the SHANTI Bill, 2025.