By Salonee Kulkarni
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI), was proposed in the parliament on Monday to open the restricted nuclear power sector to the private sector, enabling circumstances where foreign funding in the nuclear sector is expected. The reformed bill will repeal the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010.
India’s steady power was driven by coal, but the process results in pollution. Coal is a non-renewable resource. The “green” alternative available for India is Nuclear energy, which can combat climate change. The Government will have to incur huge investments for nuclear power plants, and the massive expansion of the plants is a lengthy and expensive process. By reframing the policy through the advent of the reframed bill, privatisation will help the government build multi-million dollar projects.
West Asia has displayed an interest in financing the objectives of the country to expand nuclear power and invest in the manufacturing value chain of SMR, small modular reactors. SMRs are designed to ensure safety by immediately shutting down the plant in case of an emergency by applying the rules of gravity and convection. SMR do not require massive water sources for cooling. Furthermore, the scalability aspect of its design enables a commercially competitive edge in the future. India is making legal amendments to negotiate with the US and revive the stalled trade talks.
The Government has addressed concerns related to the infusion and assured the stakeholders that the collaboration is an agreement under circumstances that align with the frameworks and guidelines drafted by the Ministry of Commerce and Industry (DPIIT) norms, and the competition will not harm other sectors. The global mandates laid down by international organisations will be adhered to and complied with.
The Shanti Bill aims to repeal Section 17 of the CLNDA, which determines under certain circumstances how the operator of a nuclear plant can sue the supplier under certain conditions and receive compensation. A supplier can be sued if a contract has been signed, which clearly states that the operator will have to pay the compensation if a defect is detected or mishaps occur.
If the supplier sells damaged or faulty equipment, the supplier can be sued. Additionally, the supplier can be sued if an intentional accident has occurred. Previously, a supplier could be sued for billions of dollars, which would prevent international companies from selling nuclear technology to India. According to global mandates, it was the operator who should be held liable and not the supplier.
The removal of section 17 challenges the previously built framework. The previous law did not define a supplier clearly, and a small company could have been sued for billions of dollars for a faulty part. Under the proposed bill, it is the size of the operator which is taken into consideration while levying a penalty. The operator is required to procure a liability fund based on the thermal power capacity.