PARLIAMENT QUESTION: NUCLEAR ENERGY SECTOR

1. At a Glance

• SHANTI Act, 2025 (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) is the new umbrella legislation for India's nuclear sector, replacing the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 [S1][S2].
• Opens nuclear power generation, fuel-cycle activities and non-power applications to private sector participation under Central Government licence and AERB safety authorisation [S1][S2].
• Anchors the Nuclear Energy Mission target of 100 GW by 2047 announced in Union Budget 2025-26 [S3].
• High-yield topic across GS-II (legislation, India-foreign relations on civil nuclear), GS-III (energy security, S&T, environment).

2. Why in the News

• Parliament Question (Department of Atomic Energy, PIB, 1 April 2026) reiterated key provisions of the SHANTI Act post-enactment [S1].
• SHANTI Bill passed by both Houses in December 2025; received Presidential assent on 21 December 2025 [S1].

3. Background & Evolution

• 1948: Atomic Energy Act, 1948 → 1954: Department of Atomic Energy (DAE) established under PM's direct charge.
• 1962: Atomic Energy Act monopolised nuclear activities with the Central Government [S1].
• 1983: Atomic Energy Regulatory Board (AERB) constituted under the 1962 Act (executive body).
• 2010: Civil Liability for Nuclear Damage Act (CLNDA) enacted after India–US 123 Agreement; criticised for supplier liability clause [S1].
• Feb 2025: Union Budget announced Nuclear Energy Mission + ₹20,000 cr for SMRs; signalled amendments to AEA & CLNDA [S3].
• Dec 2025: SHANTI Act enacted, repealing the 1962 and 2010 Acts [S2].

4. Core Static Facts

• Full name: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 [S2].
• Parent ministry/department: Department of Atomic Energy (DAE), under the Prime Minister [S1].
• Regulator: Atomic Energy Regulatory Board (AERB) — granted statutory status under SHANTI Act [S1][S2].
• Private participation: Permitted for setting up nuclear facilities, production/use/disposal of nuclear energy under Central Govt licence + AERB safety authorisation [S1].
• Reserved core functions with Central Govt: uranium enrichment, heavy water production, off-site spent fuel management [S2].
• FDI: Up to 49% under automatic route in specified nuclear activities [S2].
• Civil liability (graded): Operator liability ranges ₹100 crore to ₹3,000 crore depending on facility type (Second Schedule) [S2].
• State liability: Above operator cap, Government of India liability up to 300 million SDR [S2].
• International tier: Above GoI cap, recourse to Convention on Supplementary Compensation (CSC) for nuclear damage — India is a party [S2].
• Current nuclear capacity: 8,180 MW as of 30 January 2025 [S3].
• Interim target: 22.48 GW by 2031-32 via indigenous 700 MW PHWRs + 1,000 MW LWRs (international cooperation) [S3].
• Long-term target: 100 GW by 2047; supports net-zero by 2070 [S3].
• SMR allocation: ₹20,000 crore; at least 5 indigenous SMRs operational by 2033 [S3].

5. Multi-Dimensional Analysis

• Legal / Constitutional
• Atomic Energy is in Union List (Entry 6 – Atomic energy and mineral resources necessary for its production); SHANTI Act stays within Union competence [S1].
• Repeals AEA 1962 and CLNDA 2010; consolidates power, non-power, and liability regimes in one statute [S1][S2].
• AERB gets statutory independence, addressing long-standing CAG/IAEA critique of executive-tethered regulator [S2].
• Economic
• 49% FDI + private ownership unlocks capital for capex-heavy reactors; aligns with Viksit Bharat 2047 energy needs [S2][S3].
• Graded liability lowers entry barriers vs CLNDA's flat cap that had deterred US/French suppliers [S2].
• Scientific / Technological
• Statutory backing to SMR programme (Bharat Small Reactors / Bharat Small Modular Reactors) [S3].
• Permits private participation in fuel fabrication, U-235 conversion/refining/enrichment up to threshold [S2].
• Geopolitical / Strategic
• Alignment with CSC integrates India into the international nuclear liability regime, unblocking deals with the US (Westinghouse), France (EDF), Russia (Rosatom) [S2].
• Keeps enrichment + reprocessing + off-site spent fuel with the State — preserves strategic/weapons-grade boundary [S2].
• Environmental
• Nuclear as low-carbon baseload for net-zero 2070; complements solar (intermittent) [S3].
• Administrative
• Single-window licensing under Central Govt; AERB safety authorisation as parallel statutory check [S1].

6. Recent Developments (last 12-18 months)

• 1 Feb 2025: Union Budget 2025-26 announces Nuclear Energy Mission, 100 GW by 2047, ₹20,000 cr for SMRs [S3].
• Dec 2025: SHANTI Bill passed by Lok Sabha and Rajya Sabha [S2].
• 21 Dec 2025: Presidential assent to SHANTI Act [S1].
• 1 April 2026: DAE clarifies provisions in Parliament Question response [S1].

7. Prelims Hooks

• SHANTI = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India [S2].
• SHANTI Act received Presidential assent on 21 December 2025 [S1].
• SHANTI Act repeals Atomic Energy Act, 1962 AND Civil Liability for Nuclear Damage Act, 2010 [S2].
• FDI cap in nuclear (specified activities): 49% automatic route [S2].
• Operator liability under SHANTI: ₹100 cr – ₹3,000 cr (graded) [S2].
• Government of India liability above operator cap: 300 million SDR [S2].
• International tier above GoI liability: Convention on Supplementary Compensation (CSC) [S2].
• Nuclear Energy Mission target: 100 GW by 2047 [S3].
• Budget 2025-26 SMR outlay: ₹20,000 crore [S3].
• SMR milestone: 5 indigenous SMRs operational by 2033 [S3].
• Installed nuclear capacity (30 Jan 2025): 8,180 MW [S3].
• Projected capacity by 2031-32: 22.48 GW [S3].
• AERB given statutory status under SHANTI Act (earlier was executive body) [S2].
• Reserved State functions: uranium enrichment, heavy water production, off-site spent fuel management [S2].
• Implementing department: Department of Atomic Energy (DAE) under the Prime Minister [S1].

8. Mains Relevance

• GS-II: Government policies/legislation; India and bilateral/multilateral civil nuclear cooperation.
• GS-III: Infrastructure – Energy; Science & Technology – Indigenisation; Environment – Net-zero.
• Plausible question stems: 1. "The SHANTI Act, 2025 marks a paradigm shift from State monopoly to calibrated liberalisation in India's nuclear sector. Discuss." (GS-III, 250 words) 2. "Examine how the graded civil liability regime under the SHANTI Act addresses the bottlenecks created by the CLNDA, 2010 in operationalising India's civil nuclear deals." (GS-II, 150 words) 3. "India's Nuclear Energy Mission is integral to its net-zero pathway. Critically evaluate." (GS-III, 250 words)

9. Related Topics to Study Next

• Civil Liability for Nuclear Damage Act, 2010 — predecessor liability regime; supplier liability controversy.
• India–US 123 Agreement & NSG waiver (2008) — diplomatic genesis of civilian nuclear opening.
• Convention on Supplementary Compensation (CSC) — international liability framework India joined in 2016.
• Small Modular Reactors (SMRs) / Bharat Small Reactors — technology core of the new mission.
• Three-Stage Nuclear Programme (Bhabha) — closed fuel cycle, thorium endgame.
• AERB and IAEA safeguards — regulatory independence, additional protocol.
• India's Energy Mix & Net Zero 2070 — pairs with renewables policy.
• Entry 6, Union List & Atomic Energy — constitutional basis.

10. Common Errors / Trap Areas

• SHANTI Act repeals both AEA 1962 and CLNDA 2010 — not just one.
• AERB was created in 1983 by executive order; SHANTI Act 2025 gives it statutory status — easy to confuse.
• The 100 GW target year is 2047, not 2030 or 2032; 22.48 GW is the interim 2031-32 figure [S3].
• FDI cap is 49% automatic in specified activities; not 100% — even after liberalisation, strategic functions remain with the State.
• Enrichment, heavy water, off-site spent fuel are NOT opened to private sector [S2].
• DAE reports to the Prime Minister directly, not to the Ministry of Power or MNRE.

11. Sources

• [S1] PARLIAMENT QUESTION: NUCLEAR ENERGY SECTOR, PIB / Department of Atomic Energy, 1 Apr 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2247971 — (tier 1)
• [S2] The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 — PIB — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2206598 — (tier 1)
• [S3] Nuclear Power in Union Budget 2025-26 / A New Chapter in India's Nuclear Journey — PIB Factsheet — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099244 ; https://www.pib.gov.in/FactsheetDetails.aspx?id=150617 — (tier 1)