PARLIAMENT QUESTION: PRIVATE SECTOR PARTICIPATION IN NUCLEAR ENERGY

1. At a Glance

• The SHANTI Act, 2025 ("Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India") opens India's nuclear power sector to private sector participation for the first time since 1962. [2]
• Rules under the Act are still in the drafting stage; private-party licence applications will be considered only after these rules are notified. [1]
• The Act creates a new graded civil liability framework (₹100 crore–₹3,000 crore) for nuclear damage, replacing the earlier fixed-liability regime. [1][3]
• Directly relevant to UPSC GS-II (governance/regulatory bodies) and GS-III (energy security, S&T, nuclear policy) — a live 2025-26 legislative development.

2. Why in the News

• A Parliament Question dated 23 July 2026 sought status on private-sector licensing under the SHANTI Act; the government replied that Rules are still being drafted and license applications will follow only after notification. [1]
• This follows the Act receiving Presidential assent on 21 December 2025 and Parliament passing it (Rajya Sabha after Lok Sabha) in December 2025. [2][3]

3. Background & Evolution

• India's nuclear sector was historically governed by the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010, both of which restricted private/foreign participation and imposed supplier liability — a major deterrent to foreign reactor suppliers. [3]
• The SHANTI Bill, 2025 was introduced in Lok Sabha on 15 December 2025, passed by both Houses in December 2025, and received President's assent on 21 December 2025. [2][3]
• The Act repeals both the AEA 1962 and CLNDA 2010, creating a single unified legal framework for nuclear energy. [3]
• Driven by India's target of 100 GW nuclear capacity by 2047 and long-term decarbonisation goals for 2070. [2]

4. Core Static Facts

5. Multi-Dimensional Analysis

Economic

• Opens a capital-intensive sector to private and foreign investment, potentially easing DAE's fiscal burden for capacity expansion. [2]
• Supports India's decarbonisation-linked energy security and industrial growth (100 GW by 2047 target). [2]

Legal/Constitutional

• Repeals and consolidates two separate laws (AEA 1962, CLNDA 2010) into a single statute — a major legislative restructuring of atomic energy governance. [3]
• Removes supplier liability, aligning India's regime closer to international norms (potentially addressing past deterrents to foreign OEM participation). [3]
• Grants Central Government licensing power over private/JV entities; AERB gets statutory (rather than executive-order) status. [2][3]

Scientific/Technological

• Enables private R&D in nuclear science and technology for peaceful purposes — a shift from the state-monopoly R&D model. [2]
• Reserves sensitive fuel-cycle activities (enrichment, heavy water, spent fuel) exclusively with the Central Government for non-proliferation and safety reasons. [1][2]

Administrative/Governance

• Implementation is contingent on subordinate Rules that are still being drafted (as of July 2026) — a bottleneck delaying actual private entry. [1]
• Licensing process requires both a Central Government licence and AERB safety authorisation — a two-tier gatekeeping mechanism. [2]

Geopolitical/Strategic

• Graded, internationally aligned liability regime intended to attract foreign reactor suppliers historically deterred by CLNDA 2010's supplier-liability clause. [3]
• Liability framework also extends to cover nuclear damage in a foreign state's territory arising from incidents in India, subject to conditions. [3]

6. Recent Developments (last 12-18 months)

• 15 December 2025: SHANTI Bill introduced in Lok Sabha. [2]
• December 2025: Passed by Lok Sabha, then Rajya Sabha. [3]
• 21 December 2025: President's assent granted, Act formally notified. [2]
• 23 July 2026: Government informs Parliament that Rules under the Act are still in drafting stage; private licence applications pending Rule notification. [1]

7. Prelims Hooks

• SHANTI Act, 2025 repeals both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. [3]
• SHANTI = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India. [2]
• President's assent to SHANTI Bill: 21 December 2025. [2]
• Civil liability provisions are contained in Sections 13 & 14 of the SHANTI Act. [1]
• Overall per-incident liability cap: rupee equivalent of 300 million SDR. [1]
• Operator liability tiers range from ₹100 crore (up to 150 MW/fuel-cycle facilities) to ₹3,000 crore (above 3600 MW). [1]
• AERB (Atomic Energy Regulatory Board) is given statutory status under the SHANTI Act. [2][3]
• Activities exclusively reserved for the Central Government: enrichment/isotopic separation, heavy water production, spent-fuel management beyond on-site storage. [1][2]
• Nodal department: Department of Atomic Energy. [1]
• India's nuclear capacity target: 100 GW by 2047. [2]
• As of July 2026, Rules under the SHANTI Act are yet to be notified. [1]
• The SHANTI Act removed supplier liability present in the earlier CLNDA, 2010. [3]
• Private licensees require both a Central Government licence and AERB safety authorisation. [2]

8. Mains Relevance

• GS-II: Statutory/regulatory bodies (AERB), government policies and interventions for development in sectors. GS-III: Infrastructure — energy; science & technology developments and their applications.
• Syllabus links: "Statutory, regulatory and various quasi-judicial bodies"; "Energy"; "Achievements of Indians in science & technology; indigenization of technology."
• Possible Mains stems: 1. "Discuss the significance of the SHANTI Act, 2025 in reforming India's nuclear liability and licensing regime. What challenges remain in its implementation?" 2. "Examine how private sector participation in nuclear energy, as enabled by the SHANTI Act, can help India meet its 2047 nuclear capacity and 2070 decarbonisation targets." 3. "Civil nuclear liability has historically been a barrier to foreign investment in India's nuclear sector. Critically analyse how the SHANTI Act, 2025 addresses this."

9. Related Topics to Study Next

• Civil Liability for Nuclear Damage Act, 2010 — the predecessor law being repealed; useful for contrast on supplier liability.
• Atomic Energy Regulatory Board (AERB) — newly given statutory status; study its composition and functions.
• India's Nuclear Doctrine & Three-Stage Nuclear Programme — broader context of India's nuclear strategy.
• Convention on Supplementary Compensation for Nuclear Damage (CSC)/Vienna Convention — international liability regimes India aligns with.
• National Green Hydrogen Mission / India's 2070 Net-Zero target — links nuclear expansion to decarbonisation goals.
• Nuclear Suppliers Group (NSG) & India's membership bid — geopolitical angle on nuclear commerce.
• Public-Private Partnership (PPP) models in strategic sectors (space, defence) — comparative governance angle (ISRO/DRDO private opening).

10. Common Errors / Trap Areas

• Do not confuse the SHANTI Act, 2025 with the repealed Atomic Energy Act, 1962 or CLNDA, 2010 — the SHANTI Act repeals both.
• Liability cap of 300 million SDR is the overall/statutory ceiling; the ₹100 crore–₹3,000 crore figures are operator-specific tiers based on installation capacity — don't conflate the two.
• AERB predates the SHANTI Act (it existed earlier via executive order); the Act gives it statutory status, it does not create AERB from scratch.
• Note the current (as of the source date) status: Rules are still in drafting stage — private licences are NOT yet operational; aspirants should not assume private plants are already licensed.
• Nodal ministry/department is Department of Atomic Energy, not Ministry of Power or Ministry of New and Renewable Energy.