Relevance: GS-III (Energy, Infrastructure, Climate Change, Industry) • Source: Ministry of Power; Parliamentary proceedings

Context

Parliament has passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, marking a major policy shift by allowing private participation in India’s nuclear power sector. The reform seeks to accelerate capacity addition to meet energy security, decarbonisation, and net-zero by 2070 goals.

What the SHANTI Bill Changes

1. Private Sector Entry

The Bill permits private firms to manufacture equipment, build, operate and maintain plants, and participate in non-strategic fuel-cycle activities, ending the long-standing public sector monopoly in these areas—under strict safeguards.

2. Civil Nuclear Liability Reform

A key deterrent—supplier liability—is removed. The Bill places primary accident liability on the operator, with graded caps linked to reactor capacity, and provides government financial backstopping beyond operator limits. This aligns India more closely with international liability norms and improves investor confidence.

3. Stronger Regulation

The Bill strengthens the Atomic Energy Regulatory Board by enhancing regulatory autonomy, transparency, and safety oversight, moving towards clearer separation between promoter and regulator.

Why the Reform Was Needed

• India’s nuclear capacity (about 7–8 gigawatts) is far below potential.
• Nuclear power offers baseload, non-intermittent clean electricity, complementing solar and wind.
• High capital costs and long gestation require private capital and technology.
• Liability uncertainty earlier discouraged both domestic and foreign investment.

Concerns to Address

• Safety and public trust, given global nuclear accident experiences.
• Waste management and long-term storage solutions.
• Need for a statutory, fully independent regulator.
• Ensuring environmental accountability alongside investment facilitation.

Q. “Discuss the significance of the SHANTI Bill, 2025 in transforming India’s nuclear energy sector. Examine the opportunities and concerns of private participation.”