SHANTI Bill 2025

Introduction

• The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 seeks to overhaul India’s civil nuclear energy framework and open the sector to private and foreign participation in building and operating nuclear power plants.
• It marks a shift in nuclear governance by permitting non-state entities to own and run nuclear power plants in India.

Why in news?

• The Union Government has introduced the SHANTI Bill, 2025 in the Lok Sabha to overhaul nuclear energy laws and enable private sector participation.

Background

• India aims to expand nuclear capacity to 22 GW by 2032 and 100 GW by 2047, but Nuclear Power Corporation of India Ltd (NPCIL) alone lacks the capital, manpower, and execution capacity to meet these targets.
• A financing gap exists, with about Rs 15 lakh crore needed for 100 GW against Rs 20,000 crore provided in Budget 2025–26, necessitating private investment.
• Chronic project delays, including Kudankulam Units 3–6, highlight the need for improved project management and EPC efficiency.
• Accelerated adoption of Small Modular Reactors (SMRs), advanced reactors, and global best practices is required to meet technology and innovation needs.
• Weak uranium supply chains, with limited domestic production and reliance on G2G imports, necessitate private involvement in mining, processing, and imports for fuel security.
• Enhanced focus on nuclear power supports grid stability and net-zero 2070 goals by complementing renewables with low-carbon baseload power.
• The Bill consolidates the civil nuclear framework by repealing the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010.

Significance

• Retains government control over sensitive areas such as nuclear fuel production, heavy water manufacturing, and radioactive waste management to safeguard national security and non-proliferation commitments.
• Grants statutory status to the Atomic Energy Regulatory Board (AERB) and makes it accountable to Parliament, strengthening regulatory independence, transparency, and safety oversight.
• Revises nuclear liability by removing supplier liability and placing compensation responsibility solely on operators; caps operator liability based on installed capacity with graded limits to reduce financial uncertainty and encourage investment.
• Proposes a dedicated atomic disputes tribunal to improve regulatory certainty and investor confidence.
• Facilitates deployment of advanced nuclear technologies, including SMRs and indigenous reactor designs, contributing to clean energy transition and long-term energy security.
• Core concerns include weaker accountability due to removal of supplier liability and capped operator penalties; liability linked to plant size rather than actual damage potentially undermines the “polluter pays” principle; private firms may benefit while accident costs and long-term risks are borne by the State and citizens; given the Bhopal Gas Tragedy (1984), such changes may erode public confidence.
• Measures required to strengthen governance include bolstering AERB’s operational independence through transparent appointments and financial autonomy; periodically reviewing and indexing liability caps to inflation and risk; ensuring transparency via mandatory disclosure of safety audits, accident reporting, and emergency preparedness; establishing clear Centre–State coordination protocols for nuclear emergencies; and setting enforceable norms for long-term waste disposal and decommissioning before large-scale private expansion.

Facts/General knowledge

• As of 2025, India’s nuclear power capacity stands at 8.18 GW.
• India operates more than 20 nuclear reactors, all managed by NPCIL, with over a dozen new projects planned.
• The Nuclear Energy Mission was launched in the Union Budget 2025–26, focused on research and development of SMRs.
• India aims to develop at least five indigenously designed and operational SMRs by 2033.
• Key emerging technologies include Bharat Small Reactors (BSRs), Small Modular Reactors (SMRs), Molten Salt Reactors, and High-Temperature Gas-Cooled Reactors.