Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act

SHANTI Act is a landmark reform ending a six-decade state monopoly on nuclear power, aiming to attract private investment to meet climate and energy security goals.

Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act

• Core Objective: To unlock nuclear energy’s potential for India’s climate commitments, energy security, and technological innovation.
• Key Reforms Introduced:
• • Ends the state monopoly, creating a licence-based pathway for private sector investment.
  • Grants the Atomic Energy Regulatory Board (AERB) an independent statutory foundation as the sector regulator.
  • Restructures civil nuclear liability to align with international norms, removing a major barrier for foreign suppliers.

Liability issues with Current Law

• The 2010 Civil Liability for Nuclear Damage Act had a clause that allowed plant operators to sue suppliers. 
  • This deviated from global standards and scared away key foreign companies.
• Change in SHANTI Act:   Operator recourse against suppliers is now only permitted if explicitly stated in a contract or if the incident resulted from an intentional act to cause damage.
  • This change aligns India with international liability rules, potentially reviving stalled projects like Kovvada and Jaitapur.
• Remaining Gap: The Act does not define the term “supplier,” which could leave some uncertainty about responsibilities within the complex nuclear supply chain.

Issues Remaining Unresolved in SHANTI Act

• Vague Key Terms: Terms like “sensitive” activities, “strategic nature,” and “national security implications” are not clearly defined. 
  • This lack of clarity could stifle investment in research, particularly for new technologies like Small Modular Reactors (SMRs).
• Regulatory Uncertainty: The Act allows for creating additional regulatory bodies for “strategic” activities without clear criteria, creating uncertainty about which rules might apply to a future project.
• Regulator Independence: While the AERB is made statutory, its member selection committee is formed by the government’s Department of Atomic Energy. 
  • Incorporating independent experts in the selection process could strengthen perceived autonomy.

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Atomic Energy Regulatory Board (AERB)

• The AERB is India’s national authority for regulating all civilian nuclear and radiation facilities.
• Primary Mandate: To ensure the safe use of ionizing radiation and nuclear energy, protecting people and the environment.
• Key Regulatory Functions:
  • Granting consents and licenses for nuclear power plants, research reactors, and facilities using radiation.
  • Developing and enforcing safety codes, guides, and standards.
  • Conducting safety reviews and inspections of nuclear facilities. 
• Before the SHANTI Act, the AERB functioned as an executive body under the Atomic Energy Commission (AEC), 
• New Status: The SHANTI Act grants the AERB an independent statutory foundation.
• Headquarters: Located in Mumbai

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