Reference Article: Editorial | The Hindu – Stepping stone: On nuclear policy, the SHANTI Bill
UPSC Relevance:
– GS Paper III (Energy security, Infrastructure, Science & Technology, Investment models, Environmental governance)
Nuclear power currently contributes only about 3% of India’s electricity generation, yet the government has set an ambitious target of 100 GW of nuclear capacity by 2047, including at least five indigenous small modular reactors by 2033. Achieving this scale requires large capital mobilisation and institutional reform, which the proposed SHANTI Bill seeks to address by altering who can build and operate civil nuclear facilities.
Key Provisions and Intended Impact
The SHANTI Bill proposes a major shift in India’s nuclear energy framework by expanding eligible operators beyond state-owned entities. Its core features include:
- Opening nuclear plant construction and operation to licensed non-government entities, including joint ventures and “any other company”, signalling a role for domestic private capital rather than foreign plant owners.
- Risk-sharing and scale: allowing private participation broadens the pool of capital and spreads construction risk, which is essential for meeting long-term capacity targets.
- State control over sensitive domains: fuel cycles and proliferation-sensitive activities remain under government control, while private players participate mainly in plant delivery and parts of the supply chain.
- Regulatory clarity: by consolidating safety, enforcement, dispute resolution and participation terms into a single statute, the Bill could reduce legal ambiguity, transaction costs, and delays in site approval and commissioning.
Liability and Governance Concerns
Despite its enabling intent, the Bill raises significant issues that warrant caution:
- Liability cap: operator liability for a nuclear incident is capped at ₹3,000 crore, with the Centre assuming responsibility beyond this limit or even full liability in the public interest. While this makes risks easier to price for investors, it raises questions about the adequacy of compensation for victims and environmental remediation.
- Insurance and transparency: operators must maintain insurance or financial security, but Central government installations are exempt, making transparent public accounting crucial.
- Supplier accountability: recourse against suppliers is allowed only when specified in contracts or in cases of intentional harm, leaving accountability uneven and dependent on contract negotiation strength.
- Regulatory independence: although SHANTI creates a statutory framework, substantial control over appointments remains with the Centre and the Atomic Energy Commission, limiting the regulator’s independence and potentially affecting public trust and investor confidence.
Conclusion
The SHANTI Bill represents a significant step toward scaling India’s nuclear power by mobilising domestic private capital while retaining state control over sensitive nuclear functions. However, unresolved concerns around liability adequacy, supplier accountability, and regulatory independence could undermine public confidence and long-term sustainability. For nuclear expansion to be both credible and socially legitimate, governance reforms must match the ambition of capacity targets.
Sample UPSC Mains Question
“The SHANTI Bill seeks to open India’s nuclear power sector to private participation while retaining state control over strategic domains.” Critically examine the opportunities and challenges posed by this reform in the context of India’s energy security and regulatory framework.