Discuss the significance of the SHANTI Act, 2025 in reforming India's nuclear liability and licensing regime. What challenges remain in its implementation?

Q. Discuss the significance of the SHANTI Act, 2025 in reforming India's nuclear liability and licensing regime. What challenges remain in its implementation? (15 marks, 250 words)

The SHANTI Act, 2025 (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) repeals both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, opening India's nuclear power sector to private participation for the first time — a structural reset aligned with the 100 GW-by-2047 goal [1][3].

Significance for the liability regime - Replaces fixed liability with a graded framework: operator liability tiered from ₹100 crore (small/fuel-cycle units) to ₹3,000 crore (above 3600 MW), under an overall cap of the rupee equivalent of 300 million SDR [2]. - Removes supplier liability, the CLNDA 2010 clause that long deterred foreign reactor suppliers, aligning India with international conventions [1].

Significance for the licensing regime - Permits private and joint-venture entities to build, own and operate plants and conduct R&D, while reserving enrichment, heavy-water production and spent-fuel management for the Central Government [3]. - Confers statutory status on the AERB, strengthening independent safety regulation [3].

Challenges in implementation - Rules still in drafting (as of July 2026); private licence applications await notification, delaying actual entry [2]. - A two-tier gate — Central Government licence plus AERB authorisation — demands regulatory capacity AERB currently lacks. - Investor confidence, insurance-market depth and transparency in safety oversight remain untested.

By consolidating fragmented laws, calibrating liability and empowering the regulator, the Act lays a credible foundation for nuclear-led decarbonisation. Its promise now hinges on timely rule-making and robust institutional capacity to convert legislative intent into operational reality.

(~250 words)

Sources: 1. PRS Legislative Research — SHANTI Bill, 2025 (Bill Summary) — repeal of AEA 1962 & CLNDA 2010; removal of supplier liability 2. PIB — Parliament Question: Private Sector Participation in Nuclear Energy — graded liability tiers, 300 million SDR cap, Rules in drafting stage 3. PIB — SHANTI Act/Bill, 2025 releases — private build-own-operate scope, AERB statutory status, 100 GW-by-2047 target