Relevance: GS-3 (Energy & Technology) | GS-2 (International Relations) | Source: The Indian Express

1. The News 

A high-level US nuclear delegation recently visited India to discuss investments and technology transfers.

This visit comes after India passed the landmark SHANTI Act, 2025. This new law has completely opened up India’s strictly controlled nuclear energy sector to private companies and foreign investment, ending decades of total government monopoly.

2. The Big Shift: What is the SHANTI Act, 2025?

For over sixty years under the Atomic Energy Act of 1962, only public sector undertakings (like NPCIL) could run nuclear plants.

The SHANTI Act introduces key structural changes:

• Private Sector Entry: Well-known private Indian companies can now participate in plant operations and nuclear fuel management.
• Foreign Technology: It removes legal bottlenecks to make importing advanced foreign reactors and capital much easier.
• The Aim: To rapidly scale up nuclear energy, which currently accounts for a mere 2-3% of India’s total electricity mix.

3. Core Science Concepts: Understanding the Reactors

To grasp India’s technological transition, we must look at three reactor types:

• PHWRs (Pressurised Heavy Water Reactors): This is India’s traditional, home-grown technology. It uses Natural Uranium as fuel and Heavy Water ($D_2O$) as a coolant. However, these reactors are difficult to scale up quickly.
• LWRs (Light Water Reactors): Dominant globally (used by the US, France, and Russia). They use Enriched Uranium as fuel and ordinary Light Water as a coolant. They are highly scalable and generate massive power.
• SMRs (Small Modular Reactors): Next-generation compact reactors (up to 300 MW). Their parts are mass-produced in factories and assembled quickly on-site. They are cheaper, safer, and faster to deploy.

4. Strategic Impact: The 100 GW Target

India aims to achieve 100 GW of nuclear power capacity to meet its Net-Zero climate commitments by 2070.

• Why India Partners with the US: Building modern nuclear plants requires massive capital and advanced engineering. Collaboration with the US unlocks both funding and high-end LWR/SMR technology.
• Maintaining Strategic Autonomy: While accepting foreign investment, India must avoid over-dependence on a single nation (currently, Russia is India’s main foreign partner at Kudankulam). Creating resilient domestic supply chains is vital to shield the economy from global geopolitical risks.

5. UPSC Value Box

• The Liability Issue (CLNDA, 2010): The older Civil Liability for Nuclear Damage Act made foreign equipment suppliers legally liable for accidents, which stopped foreign trade. The SHANTI Act smoothly realigns India with global norms by placing liability on the operator.
• US Regulation ’10CFR810′: A strict US export control law that restricts the transfer of nuclear tech. The US government granted “specific authorisations” to its firms to bypass this for India.
• Regulatory Oversight: The Atomic Energy Regulatory Board (AERB) remains the supreme administrative body ensuring absolute safety and compliance across all nuclear facilities.

With reference to nuclear reactor technologies and India’s nuclear energy framework, consider the following statements:

1. Pressurised Heavy Water Reactors (PHWRs) use Enriched Uranium as fuel and ordinary Light Water as a moderator and coolant.
2. The recently passed SHANTI Act, 2025 permits the participation of private non-state entities in the operational aspects of civilian nuclear power projects.
3. Small Modular Reactors (SMRs) are advanced nuclear reactors that are highly capital intensive to build on-site from scratch but offer greater power output per unit than traditional Light Water Reactors.

Which of the statements given above are correct?

(a) 2 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Correct Answer: (a) 2 only