Recently, the Union Cabinet has approved SHANTI bill that seeks to open the highly restricted nuclear power sector to private companies and restructure India’s nuclear governance.

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

• Ends Monopoly: The Atomic Energy Act bars private entities and state governments from operating nuclear power plants. 
  • Nuclear Power Corporation of India Limited, a PSU under DAE, is the sole operator and runs all 24 commercial reactors.
  • The SHANTI Bill proposes to allow private entities to operate nuclear power plants under government oversight.
• FDI Push: The Bill allows up to 49 per cent foreign direct investment (FDI) in certain nuclear activities, helping bring technology and capital into the sector.
• Legal & Regulatory Changes: The bill proposes amending the civil liability law to shield plant operators and cap equipment suppliers’ liability, 
  • Redesigns operator insurance under the Indian Nuclear Insurance Pool: ₹1,500 crore per incident.
  • Establishes a specialised nuclear tribunal for disputes.
  • Though the Core functions (nuclear material production, heavy water, waste management) remain with the Department of Atomic Energy (DAE).

Significance of Private Sector Participation In Nuclear Energy

• Resource Mobilisation: Nuclear projects are capital-intensive; private investment expands access to domestic and global capital, reducing the government’s fiscal burden.
• Technology Innovation: Private firms bring advanced reactor designs, construction techniques, and operational efficiencies, supporting industrial decarbonisation.
• Energy Security: A diversified nuclear ecosystem strengthens supply chains and manufacturing capacity, supporting long-term low-carbon energy security.

Challenges Related to the SHANTI Bill

• Safety and Liability: High liability under the Civil Liability for Nuclear Damage Act, 2010, has previously deterred private and foreign investment.
• Security Risks: Sensitive nuclear technology and materials require stringent safeguards, surveillance, and traceability to protect national security.
• Prolonged Project Timelines: Nuclear projects typically take 8–10 years to construct, making them less attractive without risk-sharing or viability-gap funding.
• Governance and Regulatory Challenges: Shifting from State monopoly to private participation requires strong regulatory frameworks, accountability mechanisms, and coordination between civilian and security agencies.

Check Out UPSC CSE Books

Visit PW Store

DOWNLOAD PDF