How does India's revised civil liability framework for nuclear damage balance investor confidence with public safety accountability?

Q. How does India's revised civil liability framework for nuclear damage balance investor confidence with public safety accountability? (15 marks, 250-350 words)

The SHANTI Act, 2025, which received Presidential assent in December 2025, consolidates and replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 [1][2]. By recalibrating liability rules, it seeks to unlock private capital for the Nuclear Energy Mission's 100 GWe-by-2047 target while retaining the state's safety guarantee [5].

How it builds investor confidence

• Graded, predictable liability: operator liability now ranges from ₹100 crore to ₹3,000 crore depending on the type and characteristics of the installation, replacing the earlier single statutory cap that priced small and large facilities alike [3].
• Bounded exposure: liability beyond the operator's cap is backed by government cover up to 300 million SDR, aligning India with international supplementary-compensation practice and capping downside risk [3].
• Legal entry route: the Act empowers the Centre to license Indian companies, government–private joint ventures and permitted persons to build, own or operate reactors and handle nuclear fuel — ending the public-sector monopoly [1][2].

How it preserves public safety accountability

• Statutory regulator: the Act grants formal statutory recognition to the Atomic Energy Regulatory Board (AERB), strengthening its independence to frame binding safety standards [4].
• Entity- and technology-neutral oversight: the same regulatory regime applies to public and private operators alike, so cheaper capital does not translate into lighter scrutiny [3].
• No-fault operator liability retained: victims' compensation remains channelled to the operator, preserving a single, identifiable accountable party.

The framework therefore trades an unlimited, ambiguous risk for a calibrated and insurable one, while shifting accountability from a monopoly operator to an empowered regulator. Its success will hinge on AERB's institutional capacity, transparent licensing and a functioning nuclear insurance market. If these are built alongside capacity addition, the Act can advance both energy security under the net-zero-2070 pledge and the constitutional right to a safe environment.

(~305 words)

Sources: 1. The SHANTI Act, 2025 (full text, PRS) — repeal of 1962 and 2010 Acts; licensing of private and joint-venture entities 2. Summary of the SHANTI Bill, 2025 (PRS) — scope of permitted private activities; consolidation of earlier laws 3. PIB Parliament Question: Nuclear Energy Sector — graded liability ₹100–3,000 crore; 300 million SDR cover; entity- and technology-neutral AERB oversight 4. PIB: The SHANTI Bill, 2025 — statutory recognition and strengthened independence of AERB 5. PIB Parliament Question: Nuclear Energy Mission for Viksit Bharat — 100 GWe by 2047 target and net-zero 2070 linkage