SHANTI Act, 2025: Draft Rules on Nuclear Liability and Insurance (Current Events)
SHANTI Act, 2025: Draft Rules on Nuclear Liability and Insurance (Current Events)
Why In News:
The Department of Atomic Energy (DAE) has notified draft rules under the SHANTI Act, 2025, mandating insurance cover for nuclear plants and periodic review of operator liability caps.
SHANTI Act, 2025
New Legal Framework: The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, creating a unified framework for India’s nuclear energy sector.
Private-Sector Participation: The Act enables limited private-sector participation in specified nuclear power activities, subject to government licensing, regulatory oversight and safety requirements, with the aim of mobilising investment and technology.
Nuclear Liability Framework: It retains the no-fault liability principle, under which the nuclear operator is liable for damage arising from a nuclear incident irrespective of negligence.
The Act introduces a graded operator-liability structure ranging from ₹100 crore to ₹3,000 crore, depending on the category and capacity of the installation.
Thus, smaller or lower-risk facilities face lower liability limits, while larger and potentially higher-risk installations are subject to higher liability ceilings, ensuring that financial responsibility is proportionate to the scale and risk profile of the facility.
Regulatory and Safety Framework: The Act strengthens the institutional framework for nuclear safety, security, safeguards and emergency preparedness, while providing mechanisms for compensation and adjudication of nuclear damage claims.
Draft SHANTI Rules, 2026: Key Provisions
Mandatory Insurance: The draft rules require nuclear operators to maintain insurance cover or other approved financial security to meet their statutory liability in the event of a nuclear incident.
Five-Year Review of Liability: The Central Government will constitute an expert group every five years to review the maximum limits of an operator’s liability and recommend revisions, where necessary.
Periodic Adjustment: The review mechanism allows liability ceilings to be updated in response to changes in nuclear technology, installation capacity, economic conditions and compensation requirements, rather than keeping them permanently fixed.
Financial Protection for Victims: Mandatory financial security is intended to ensure that resources are readily available for compensation following a nuclear incident, strengthening the victim-compensation framework.
Statutory Status to AERB: The draft rules provide for the Atomic Energy Regulatory Board (AERB) to function as a statutory regulatory authority, strengthening its independence, regulatory oversight and accountability in nuclear safety and radiation protection.
India’s Nuclear Expansion
India is pursuing an expansion of nuclear power to strengthen energy security and reduce carbon intensity, alongside continued development of indigenous Pressurised Heavy Water Reactors (PHWRs) and Small Modular Reactors (SMRs).
The Nuclear Energy Mission has allocated ₹20,000 crore for the development of SMRs, with a target of at least five indigenous SMRs by 2033.
Greater participation of private entities is expected to complement public-sector capacity and help mobilise capital, technology and manufacturing capabilities for the nuclear sector.