PARLIAMENT QUESTION: IMPLEMENTATION CONCERNS OF SHANTI ACT

1. At a Glance

• SHANTI Act = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 — received Presidential assent on 21 December 2025, replacing the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010 [1][2][4].
• Opens India's nuclear sector to private firms and joint ventures for production, use and disposal of nuclear energy under a Central Government licence + safety authorisation by the regulatory board [1][3].
• Parliament Question of 29 January 2026 (Department of Atomic Energy) addressed concerns on security, safeguards, waste disposal, decommissioning and civil nuclear damage compensation [1].

2. Why in the News

• 29 Jan 2026: PIB release by Department of Atomic Energy answering a Parliament Question on implementation concerns of the SHANTI Act [1].
• Act assented 21 Dec 2025; passed by Lok Sabha and Rajya Sabha in Dec 2025 winter session [2][4].

3. Background & Evolution

• 1962: Atomic Energy Act — kept nuclear power production a state monopoly under DAE/NPCIL [4].
• 2010: CLND Act — capped operator liability at ₹1,500 cr with supplier recourse clause that deterred foreign vendors [4].
• Feb 2025 Union Budget: Government announced Nuclear Energy Mission with target of 100 GW nuclear capacity by 2047 and pledged to amend Atomic Energy + CLND Acts [4].
• Dec 2025: SHANTI Bill passed Parliament; assented 21 Dec 2025 [2][4].

4. Core Static Facts

• Full name: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 [2].
• Parent ministry/department: Department of Atomic Energy (DAE), under the Prime Minister's Office [1].
• Repeals: Atomic Energy Act, 1962 and CLND Act, 2010 [4].
• Regulator: Atomic Energy Regulatory Board (AERB) — granted statutory status under the Act [4][5].
• Licensing: Central Govt grants licence; AERB issues safety authorisation [1].
• Eligible licensees: Indian companies (incl. private) and joint ventures; foreign-incorporated companies excluded as standalone licensees [4].
• Liability cap: Tiered ₹100 cr to ₹3,000 cr based on plant capacity (replaces flat ₹1,500 cr) [4].
• Supplier recourse: Removed — aligns with CSC (Convention on Supplementary Compensation) [4].
• Insurance/financial security: Mandatory only for private operators; central-government installations exempt [4].
• Strategic activities reserved for Centre: uranium enrichment/isotopic separation, spent-fuel reprocessing, heavy water production [2][4].
• R&D exemption: Research, design, innovation for peaceful uses allowed without licence [2].

5. Multi-Dimensional Analysis

Legal / Constitutional

• Atomic energy falls under Union List Entry 6 ("atomic energy and mineral resources necessary for its production") — Centre's exclusive competence [4].
• Act creates statutory AERB, addressing long-standing IAEA criticism of regulator's lack of legal independence from DAE [5].

Economic

• Liability cap raised to ₹3,000 cr for largest plants but lowered to ₹100 cr for small reactors — designed to attract SMR (Small Modular Reactor) investment [4].
• Removal of supplier recourse expected to unlock stalled deals with US (Westinghouse), French (EDF) and Russian vendors [4].
• Supports 100 GW by 2047 target announced in Union Budget [4].

Administrative / Implementation Concerns (subject of PQ)

• Security & safeguards — licence conditions include implementation of security and IAEA safeguards [1].
• Radioactive waste disposal — licence conditions specify waste-management obligations on licensee [1].
• Decommissioning — licensee responsible for plant decommissioning [1].
• Civil nuclear damage — operator must hold sufficient financial security for compensation [1].
• Penalties — Act provides for penalties and offences for non-compliance [1].

Ethical / Governance

• Critics flag dilution of accountability (supplier recourse removal), regulatory independence doubts, and concerns over RTI overrides for nuclear information [4].
• Tiered low cap of ₹100 cr criticised as inadequate disaster compensation [4].

Geopolitical / Strategic

• Aligns India with Convention on Supplementary Compensation (CSC) norms — eases Indo-US 123 Agreement implementation [4].
• Retains Centre's monopoly over enrichment and reprocessing — preserves nuclear-weapons-programme firewall [2][4].

6. Recent Developments

• Feb 2025: Nuclear Energy Mission and Atomic Energy/CLND amendment announced in Union Budget [4].
• Dec 2025: SHANTI Bill passed both Houses; AERB given statutory status [5].
• 21 Dec 2025: Presidential assent [2].
• 29 Jan 2026: PIB release on Parliament Question — Implementation Concerns of SHANTI Act [1].

7. Prelims Hooks

• SHANTI Act assented 21 December 2025 [2].
• Repeals Atomic Energy Act 1962 and CLND Act 2010 [4].
• Implementing department: Department of Atomic Energy (under PMO) [1].
• Regulator: AERB, now of statutory status [5].
• Liability range: ₹100 cr – ₹3,000 cr (capacity-based tier) [4].
• Earlier flat liability cap under CLND 2010: ₹1,500 cr [4].
• Foreign-incorporated companies barred from being standalone licensees [4].
• Supplier recourse clause removed [4].
• R&D in peaceful nuclear uses does not require licence [2].
• Enrichment, spent-fuel reprocessing, heavy-water production reserved for Central Government [2][4].
• Atomic Energy is Union List Entry 6 [constitutional].
• Nuclear target: 100 GW by 2047 [4].
• Licensee responsible for decommissioning of NPP [1].
• Insurance mandatory only for private operators; central-government plants exempt [4].
• Licence conditions cover security, safeguards, radioactive waste disposal [1].

8. Mains Relevance

• GS-III: Science & Technology (nuclear energy); Infrastructure (energy); Environment (clean energy transition).
• GS-II: Government policies and interventions; statutory bodies (AERB).
• Question stems: 1. "The SHANTI Act, 2025 marks a paradigm shift in India's nuclear governance. Examine its implications for private participation, liability and regulatory independence." 2. "Critically analyse whether the tiered liability structure under the SHANTI Act adequately balances investor confidence with victim compensation." 3. "Discuss the role of statutory AERB under the SHANTI Act in addressing safety and safeguards concerns of India's expanding nuclear programme."

9. Related Topics to Study Next

• Atomic Energy Act, 1962 — repealed predecessor; comparison questions likely.
• CLND Act, 2010 — liability regime now replaced.
• Convention on Supplementary Compensation (CSC) — international liability framework India joined in 2016.
• Indo-US Civil Nuclear Agreement (123 Agreement) — strategic backdrop.
• AERB — now statutory; pre-2025 it was an executive body.
• Small Modular Reactors (SMRs) & Bharat Small Reactors — Budget 2025 mission.
• NPCIL, BHAVINI, NTPC nuclear JVs — operators.
• IAEA Safeguards & Additional Protocol (2014) — implementation linkage.

10. Common Errors / Trap Areas

• Wrong ministry: DAE reports to PMO, not Ministry of Power or MNRE.
• Liability confusion: Old CLND cap was ₹1,500 cr flat; new SHANTI is tiered ₹100–3,000 cr — don't conflate.
• Foreign companies: Act allows JVs with foreign firms, but a wholly foreign-incorporated company cannot be a licensee.
• AERB: Previously created by 1983 executive order under Atomic Energy Act; SHANTI gives it statutory status for the first time.
• Supplier liability: Recourse clause is removed, not retained — opposite of CLND 2010.
• Atomic energy is Union List Entry 6, not a State or Concurrent subject.