Critically evaluate the SHANTI Act, 2025 as a legal instrument for liberalising India's nuclear energy sector.

Q. Critically evaluate the SHANTI Act, 2025 as a legal instrument for liberalising India's nuclear energy sector. (15 marks, 250 words)

Enacted on 20 December 2025, the SHANTI Act, 2025 (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) consolidates the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 into a single framework, opening the DAE-monopolised sector to regulated private entry [1][2]. As the legal backbone of the Nuclear Energy Mission (100 GWe by 2047), it is a decisive but incomplete liberalising instrument.

Strengths as a liberalising instrument - Private participation: for the first time permits private firms in plant operation, power generation and equipment manufacture under oversight [1]. - Investment certainty: grants statutory status to the AERB, caps operator liability by plant capacity and removes supplier liability, easing the CLND-2010 chokehold that deterred vendors [1]. - Technology enablement: statutory space for Small Modular Reactors (BSMR-200, SMR-55) and the HTGCR for hydrogen, aligning nuclear with net-zero by 2070 [2].

Limitations and concerns - Reserved strategic domain: enrichment, reprocessing, spent-fuel and heavy-water functions remain exclusively with the Centre, so liberalisation is bounded, not full market opening [1]. - Safety–liability trade-off: removing supplier liability may weaken accountability and public trust after Bhopal-era caution [1]. - Capacity gap: 100 GWe demands massive capital and skilled regulation; statutory intent needs institutional depth to deliver.

By replacing an outdated liability regime with an investment-friendly, technology-neutral architecture, the SHANTI Act is a genuine enabler of India's energy transition. Its success now hinges on a robustly resourced AERB and calibrated safeguards—balancing openness with the constitutional duty to protect life and environment.

(~250 words)

Sources: 1. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 — PIB — private entry, statutory AERB, liability cap, removal of supplier liability, reserved strategic activities 2. Parliament Question: Nuclear Energy Sector / Mission — PIB — Nuclear Energy Mission 100 GWe by 2047, indigenous SMRs (BSMR-200, SMR-55, HTGCR), net-zero 2070 linkage