Examine the implications of the SHANTI Act, 2025 for private and foreign participation in India's nuclear power sector.

Q. Examine the implications of the SHANTI Act, 2025 for private and foreign participation in India's nuclear power sector. (15 marks, 250-350 words)

The SHANTI Act, 2025, which replaces both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 [1], ends six decades of state monopoly in nuclear power — a shift driven by the capital needs of the 100 GW-by-2047 target [2].

Enabling private entry - Widened licensing: the Centre may now licence Indian-incorporated companies, and government–private joint ventures, to build, own or operate reactors and to fabricate, transport, trade or store nuclear fuel [1]. - Capital mobilisation: private equity eases the fiscal burden of tripling installed capacity to 22,480 MW by 2031-32 [3] and of the ₹20,000 crore Nuclear Energy Mission targeting five indigenous SMRs by 2033 [2]. - Regulatory credibility: statutory recognition of the AERB [1] gives investors an independent, legally anchored safety regulator instead of an executive-order body.

Implications for foreign participation - Direct entry remains barred: licences expressly exclude companies incorporated outside India [1]; foreign firms can enter only as minority equity partners, technology suppliers or EPC contractors through Indian entities. - Liability recalibrated: operator liability is now tiered by plant capacity (₹100–3,000 crore) and the operator's right of recourse against suppliers is removed [1] — the single biggest deterrent to foreign vendors since 2010. - This favours a technology-and-components route over turnkey imports, protecting India's indigenous PHWR line, whose per-kW cost is among the world's lowest.

Attendant concerns - Diluted supplier liability may weaken safety incentives and victim compensation [1]. - AERB's institutional capacity must scale with a rapidly multiplying, multi-operator fleet. - Land acquisition and local trust remain unresolved on the ground.

The Act thus converts nuclear power from a closed strategic enclave into a regulated market, while retaining sovereign control over fuel and security. Its promise will rest on a well-resourced AERB, transparent licensing and calibrated foreign entry that supplements — rather than supplants — indigenous capability, aligning energy security with India's net-zero-2070 commitment.

(~320 words)

Sources: 1. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 — PRS Legislative Research — repeal of the 1962 and 2010 Acts, licensing eligibility, exclusion of foreign-incorporated companies, tiered operator liability, removal of recourse against suppliers, statutory AERB 2. A Nuclear Energy Mission for R&D of Small Modular Reactors will be set up: Budget 2025-26 — PIB — 100 GW by 2047 target, ₹20,000 crore SMR outlay, five indigenous SMRs by 2033 3. Nuclear Power in Union Budget 2025-26 — PIB, Department of Atomic Energy — tripling of installed capacity to 22,480 MW by 2031-32