PARLIAMENT QUESTION : SAFEGUARDS UNDER SHANTI ACT

1. At a Glance

• SHANTI Act = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025; consolidates and replaces the Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage (CLND) Act, 2010 [2][3].
• Opens India's hitherto state-monopoly nuclear sector to private and foreign participation under Central Government licence and AERB safety authorisation [1][2].
• The Parliament Question (29 Jan 2026) clarifies the safeguards regime — licensing, regulatory authorisation, graded liability and statutory AERB — that accompanies this opening [1].

2. Why in the News

• 29 Jan 2026: Department of Atomic Energy answered a Parliament Question on safeguards under the SHANTI Act [1].
• 21 Dec 2025: SHANTI Act received Presidential assent, days after Rajya Sabha passed it following Lok Sabha clearance [2].
• Triggers a ₹17.8 lakh crore (~USD 214 bn) projected investment window in civil nuclear, aligning India with global liability conventions [3].

3. Background & Evolution

• 1962: Atomic Energy Act vested all nuclear activity in Central Government / DAE entities (NPCIL monopoly) [2].
• 2010: CLND Act enacted post Indo-US 123 Agreement; its supplier liability clause deterred foreign vendors [3].
• Union Budget 2024-25 & 2025-26: GoI announced Nuclear Energy Mission, targeting 100 GW nuclear capacity by 2047 and amendment of Atomic Energy & CLND Acts [2].
• Dec 2025: SHANTI Bill passed by both Houses; assented 21 Dec 2025 [2][3].

4. Core Static Facts

• Full form: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 [2].
• Parent Ministry: Department of Atomic Energy (DAE) under the Prime Minister's Office (not MoP/MNRE) [1].
• Regulator: Atomic Energy Regulatory Board (AERB) — now granted statutory status under SHANTI (earlier an executive body since 1983) [2][3].
• Liability cap: Graded operator liability — ₹100 crore to ₹3,000 crore per installation, listed in the Second Schedule [2][3].
• Liability principle: Strict, no-fault, operator-only liability; supplier liability removed to align with the Convention on Supplementary Compensation for Nuclear Damage (CSC) [3].
• Private sector activities permitted: build-own-operate nuclear power plants; fabricate nuclear fuel; R&D in nuclear S&T for peaceful purposes; non-power uses (medicine, agriculture, industry) [1].
• Gateway safeguard: Central Government licence + AERB Safety Authorisation mandatory before any private nuclear facility [1].

5. Multi-Dimensional Analysis

Legal / Constitutional

• Atomic Energy is Entry 6, Union List, Seventh Schedule — exclusive Union domain; SHANTI Act stays within this competence [2].
• Repeals AE Act 1962 + CLND Act 2010; consolidates into a single statute [2][3].
• AERB gets statutory independence, fixed-tenure chairperson, financial autonomy, quasi-judicial penalty/licence-suspension powers — analogous to SEBI/TRAI architecture [3].

Economic

• Potential USD 214 billion investment unlock by dismantling NPCIL monopoly [3].
• Supports 100 GW by 2047 target announced under the Nuclear Energy Mission [2].

Strategic / Geopolitical

• Aligns India with CSC (IAEA) liability regime, removing the long-standing US-vendor (Westinghouse/GE-Hitachi) bottleneck [3].
• US industry delegation engaged DAE Minister Dr. Jitendra Singh on private investment post-SHANTI [2].

Scientific / Technological

• Statutory regulatory framework for non-power applications: radiation in healthcare, agriculture, industry, research [1][2].
• Enables private SMR (Small Modular Reactor) and fuel-fabrication entry under graded safeguards [3].

Ethical / Governance

• New Atomic Energy Redressal Advisory Council and appellate mechanism for dispute resolution [3].
• Safeguards address transparency by making AERB accountable to Parliament [3].

6. Recent Developments (last 12-18 months)

• Feb 2025: Nuclear Energy Mission announced in Budget speech [2].
• Dec 2025: SHANTI Bill passed by Lok Sabha and Rajya Sabha [2].
• 21 Dec 2025: Presidential assent [2].
• 29 Jan 2026: DAE answers Parliament Question on SHANTI safeguards [1].
• 2026: US industry delegation meets Minister Jitendra Singh on private nuclear investment [2].

7. Prelims Hooks

• SHANTI expands to Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India [2].
• SHANTI Act, 2025 received Presidential assent on 21 December 2025 [2].
• SHANTI repeals the Atomic Energy Act, 1962 and the CLND Act, 2010 [2][3].
• Implementing/parent department: Department of Atomic Energy (under PMO) [1].
• AERB is given statutory status for the first time under SHANTI [3].
• Atomic Energy is Entry 6, Union List — Seventh Schedule [2].
• Operator liability is graded ₹100 crore – ₹3,000 crore in the Second Schedule [3].
• Liability is strict, no-fault, operator-only; supplier liability is removed [3].
• Private entities need both a Central Government licence AND AERB Safety Authorisation [1].
• Permitted private activities: build-own-operate NPPs, fabricate nuclear fuel, R&D for peaceful uses, non-power applications in medicine/agriculture/industry [1].
• Aligns India with CSC (Convention on Supplementary Compensation for Nuclear Damage) — an IAEA convention [3].
• Budget target: 100 GW nuclear capacity by 2047 under Nuclear Energy Mission [2].

8. Mains Relevance

• GS-III: Energy security; Science & Tech – indigenous nuclear; Infrastructure.
• GS-II: Government policies & interventions; statutory regulatory bodies.
• Possible stems: 1. "The SHANTI Act, 2025 marks a paradigm shift from state monopoly to regulated private participation in India's nuclear sector. Discuss the safeguards it institutionalises." (GS-III, 250 words) 2. "Removal of supplier liability under the SHANTI Act resolves a long-standing impediment to civil nuclear cooperation. Critically examine." (GS-II/III, 250 words) 3. "Granting statutory status to AERB strengthens nuclear safety governance in India. Comment." (GS-II, 150 words)

9. Related Topics to Study Next

• CLND Act, 2010 — predecessor; understand supplier-liability controversy.
• Convention on Supplementary Compensation (CSC), IAEA — international liability regime SHANTI mirrors.
• AERB — composition, powers post-SHANTI; comparison with NRC (US).
• Nuclear Energy Mission (Budget 2025-26) — 100 GW by 2047 roadmap.
• Small Modular Reactors (SMRs) & Bharat Small Reactors — likely private-sector entry points.
• Indo-US 123 Agreement (2008) — historical context for nuclear opening.
• Seventh Schedule, Entry 6 — federalism dimension of atomic energy.
• NPCIL, BHAVINI, NTPC nuclear JV — incumbent public-sector players.

10. Common Errors / Trap Areas

• Wrong ministry: SHANTI is administered by DAE under PMO, not Ministry of Power or MNRE.
• AERB status: Pre-SHANTI, AERB was a 1983 executive-order body; SHANTI gives it statutory status — don't say it was always statutory.
• Liability confusion: SHANTI does not abolish liability — it removes supplier liability and retains operator strict liability under a graded cap.
• CSC vs NPT: SHANTI aligns India with CSC (liability), not NPT (which India hasn't signed).
• Private monopoly myth: Private sector still needs Central Government licence + AERB authorisation — it is regulated entry, not deregulation.
• Constitutional entry: Atomic energy is Union List Entry 6, not Concurrent.