Sat Dec 20 20:58:00 UTC 2025: # India’s Nuclear Energy Sector Poised for Transformation with SHANTI Act
The Story:
The Indian Parliament has enacted the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, repealing the Atomic Energy Act 1962 and the Civil Liability for Nuclear Damage (CLND) Act 2010. This landmark legislation aims to encourage private sector participation and attract foreign investment into India’s nuclear energy sector, which has historically been dominated by public sector enterprises. The move is part of India’s ambitious plan to increase its nuclear capacity from 8.8 GW to 100 GW by 2047.
Key Points:
* SHANTI Act repeals the Atomic Energy Act 1962 and the CLND Act 2010, opening the nuclear sector to private and potentially foreign investment.
* India aims to increase nuclear capacity to 100 GW by 2047, with private companies expected to contribute significantly.
* The Act eliminates a clause that held suppliers liable for nuclear incidents due to faulty equipment, addressing concerns of American and French reactor manufacturers following the 2008 Indo-U.S. nuclear deal.
* SHANTI implements a graded penalty system for nuclear accidents based on plant capacity, ranging from ₹100 crore to ₹3,000 crore.
* The Act gives statutory form to the Atomic Energy Regulatory Board, while the Centre retains control over key functions.
* India plans to rely on Small Modular Reactors (SMRs) which are smaller versions of existing reactors in the U.S. and France.
* Commissioning of India’s prototype Fast Breeder Reactor has been pushed to September 2026.
Critical Analysis:
The passing of the SHANTI Act represents a significant strategic shift in India’s energy policy. Removing the supplier liability clause appears to be a direct response to the reluctance of foreign companies to invest in India’s nuclear sector, despite the Indo-U.S. nuclear deal. The graded penalty system seems designed to incentivize private sector participation by mitigating the potential financial risks associated with nuclear accidents. It is likely that these changes have been deemed necessary to meet India’s ambitious nuclear energy goals by 2047. The historical context provided offers no insights into the passing of the SHANTI act
Key Takeaways:
* India is making a concerted effort to expand its nuclear energy capacity through private sector involvement.
* Liability concerns that hindered foreign investment in the past have been addressed.
* The graded penalty system aims to balance attracting investment with ensuring accountability in the event of nuclear accidents.
* India is looking to rely on SMRs to achieve its nuclear goals.
* India’s three-stage nuclear program is still facing delays as the Fast Breeder Reactor is not yet operational.
Impact Analysis:
The SHANTI Act has the potential to reshape India’s energy landscape. By attracting private investment and foreign technology, India could significantly increase its nuclear energy capacity and reduce its reliance on fossil fuels. However, the success of this initiative hinges on several factors, including the effectiveness of the regulatory framework, the availability of enriched uranium for SMRs, and the ability to manage the risks associated with nuclear accidents. The long-term impact will depend on how effectively India can balance its energy ambitions with safety and environmental concerns.
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