What does the SHANTI Bill change? | Explained
The story so far:
Parliament passed the Sustainable Use and Development of Nuclear Energy in India (SHANTI) Bill despite Opposition demands for amendment and review by the Select Committee. To meet India’s energy security needs, the government has strengthened the Nuclear Energy Mission with ₹ 20,000 crore earmarked for Small Modular Reactors and advanced pressurized water reactors. India’s nuclear energy sector has remained under State control and unchanged since 1956. Private and foreign partnerships were restricted under previous laws (the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010). Private and Foreign companies were avoiding India due to its strict liability laws.
What is the SHANTI Bill?
The SHANTI Bill is a comprehensive law that opens India’s nuclear energy sector to private sector and foreign participation, which was previously completely under state control and deeply regulated. Under the bill, private Indian companies can seek licenses to own, build and operate nuclear power plants. It is also open to foreign supplier participation.
While the SHANTI Bill allows up to 49% private participation, it maintains 51% government control over sensitive activities such as nuclear fuel production, heavy water production, radioactive waste management, safety mechanisms, licensing and strategic oversight.
The bill ends Nuclear Power Corporation of India Limited’s (NPCIL) monopoly on plant operations. It allows private companies and joint ventures to build, own and operate nuclear power plants. The private sector will be involved in fuel manufacturing, equipment manufacturing, facility operations and research and development. This will essentially be a public-private partnership model aimed at attracting private capital under government control.
The bill facilitates advanced nuclear technologies by enabling private participation and regulatory clarity. It contributes to the clean energy transition and long-term energy security by supporting the deployment of Small Modular Reactors (SMRs) and domestic reactor designs.
What is the role of AERB?
The Atomic Energy Regulatory Board (AERB), created under the Atomic Energy Act 1983, has now been given legal status and is accountable to Parliament rather than solely to the executive.
AERB is responsible for ensuring nuclear safety, radiation protection, emergency preparedness and quality assurance at civil nuclear facilities. Publishes security measures, licenses and standards; It administers the industrial safety provisions of the Factories Act, 1948 for units under the Department of Atomic Energy in accordance with Article 23 of the Atomic Energy Act and carries out inspections to prevent radiation hazards. Due to increased private sector participation, it plays an important role in strengthening regulatory oversight under the SHANTI Bill. However, the Bill was criticized for concentrating power in a single institution.
What security measures are in place?
The bill does not explicitly allow foreign direct investment in the nuclear energy sector. Private companies will need permission from the AERB. Permits are required to establish a facility for the establishment, operation or withdrawal of radioactive facilities, as well as to the production, possession, disposal of radioactive material and radiation production equipment.
The government controls the reprocessing and management of spent fuel and high-level radioactive waste; production and recovery of heavy water; enrichment and isotopic separation of radioactive substances. The law also provides for the establishment of a nuclear liability fund to meet compensation needs in case of nuclear accidents.
What has changed in terms of responsibility?
Compared to the previous regime, the SHANTI Bill ensures that the extent of liability is transparent and predictable for operators. Liability ceilings are fixed as follows: ₹3,000 crore for large plants of 3,600 MW capacity; ₹ 1,500 crore for medium-sized plants of 1,500-3,600 MW; and ₹ 100 crore for Small Modular Reactors of 150 MW capacity. In cases of serious violations, penalties for legal violations are limited to ₹1 crore.
The Union government will assume liability beyond the operator’s cap, with additional support from the proposed nuclear liability fund. Previously, operators could hold suppliers responsible for defective parts, faulty equipment, design inefficiencies and intentional actions that caused damage. The current bill completely eliminates supplier liability.
What is the government’s perspective?
The Center aims to strengthen India’s energy security by diversifying the power mix, reducing dependence on fossil fuels and fuel imports, and expanding atomic energy capacity.
Energy security is one of the main objectives to increase India’s development index. It provides 24×7 baseload power compared to solar energy and wind energy, which depend on geographical conditions. This would be a boost for the energy sector, which is still heavily dependent on coal. It also enables the development of technology and economy.
Nuclear energy provides clean energy with very low carbon emissions. It makes it easier for India to achieve its 2070 net zero targets. The bill could also revive stalled civil nuclear agreements with the US, France and Japan, reduce dependence on Russia alone and strengthen India’s image as a responsible global nuclear player.
Why does India need nuclear energy?
India struggles with solar, wind and hydroelectric power due to geographical and climate variables and still relies heavily on coal for electricity generation. Storage and grid integration costs for renewable resources remain high.
Therefore, it is imperative to have sufficient baseload generation capacity for a cost-effective and unlimited supply. To ensure energy security of a growing economy, India needs to strengthen and expand its nuclear energy sector. Additionally, the electricity mix must have sufficient baseload generation capacity to be affordable and reliable for consumers. Nuclear power plants are one of the most effective in achieving this.
What is India’s nuclear energy mission?
India has a largely indigenous fuel cycle-based nuclear energy program that aims to utilize India’s vast thorium reserves. Currently, India manages 25 nuclear reactors in seven power plants (21 pressurized heavy water reactors and four light water reactors), all managed by NPCIL.
According to RB Grover, distinguished Professor of Homi Bhabha National Institute and member of the Atomic Energy Commission, since India does not have enough uranium, the Nuclear Power Corporation of India has specialized in the design and operation of pressurized heavy water reactors. The Bhabha Atomic Research Center has developed technologies to reprocess spent fuel to recover valuable materials and deal with nuclear waste. In this sense, India is an independent and self-sufficient country in nuclear energy production. India has commissioned a fast breeder reactor for the use of thorium.
Why did the opposition strongly criticize the bill?
The opposition argues that the bill weakens accountability by allowing profit-oriented private participation while placing responsibility on the state and society. There is a fear of a repeat of incidents like the Bhopal Gas tragedy, where foreign companies avoided liability and remuneration despite appealing to civil courts; Moreover, such an application is not possible according to the new Law. Compared to the actual volume and extent of damages, it is considered unreasonable to eliminate supplier liability and limit operator liability and penalties to a nominal cost. The principle of ‘polluter pays’ is being undermined and this puts public safety at risk. Private companies have no liability for accident costs, public safety issues and long-term risks. The operator liability cap does not change within 15 years, despite inflation or long-term considerations of the health, environmental and livelihood costs of any serious accident.
Cases such as Fukushima and Chernobyl point to the huge cost of responsibility. Actual civilian damages in the Fukushima disaster were 700 times greater than the upper limit proposed in the SHANTI bill.
Clause 39 of the bill seeks to override the RTI Act, 2005. It has raised many concerns as it aims to eliminate public interest review and public appeal mechanisms. This will ‘restrict’ the most important information about the nuclear sector, including facility details, operations, mechanisms, regulatory submissions and data on nuclear materials. This dilutes transparency and calls into question the public accountability of the proposed system. The RTI Act 2005, in its wisdom, already exempts disclosure of information related to India’s security, national interests, business information and personal data. However, these exemptions are subject to justification in cases of public responsibility and public interest.
Article 42 invalidates occupational safety, health and working conditions for nuclear facilities. Nuclear workers were excluded from the country’s general occupational safety framework. This triggered opposition from ten central unions, including the Samyukta Kisan Morcha and the National Electrical Employees and Engineers Coordination Committee, which called the bill “draconian”.
The opposition insists that the bill is vendor-driven despite India’s self-confidence in nuclear technology. It is claimed that India has deep thorium reserves, around which nuclear reactors are built and which must be exploited. The opposition is demanding that private companies be forced to install India’s technology.
The bill does not contain provisions for mandatory public hearings, environmental impact assessment disclosures, community approval mechanisms, regular public reporting of safety audits or Parliamentary scrutiny.
The opposition also cited the example of France, where all nuclear reactors are under government control. The bill has been criticized for being pro-profit, pro-oligarch, and serving crony capitalists while gambling with public safety.
Saee Pande is a freelance writer focusing on politics, current events, international relations and geopolitics.
