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

India’s Nuclear Power Status and Government Vision

• Current Contribution of Nuclear Power: India’s contribution to total electricity generation from nuclear power is very low, at about 3%.
• International Comparison: This level is significantly lower than in developed nations such as France, where nuclear power accounts for nearly 70% of total electricity generation.
• Long-Term Capacity Target: The Government of India has articulated a large-scale long-term vision to achieve 100 Gigawatts of nuclear power capacity by 2047, coinciding with 100 years of India’s independence.
• Small Modular Reactors (SMRs) by 2030: The government also aims to establish at least five indigenous SMRs by 2030.
  • SMRs are smaller, more flexible versions of large nuclear plants, and are considered safer, less costly, and easier to assemble on-site after factory manufacturing.

Breaking the 1962 Monopoly on Nuclear Energy

• Need for Private Participation: The government seeks to involve private players because nuclear power plant construction is highly capital-intensive, and the government and NPCIL (Nuclear Power Corporation of India Limited) do not have unlimited financial resources.
• Atomic Energy Act, 1962: The Atomic Energy Act of 1962 established a Central Government monopoly in the nuclear energy sector, thereby prohibiting private entry.

About the Shanti Bill

• Objective: To break the long-standing monopoly of the government in the nuclear energy sector.
• Expanded Eligibility for Nuclear Licences: Under the new bill, nuclear energy licences can be granted to government entities, joint ventures, and “any other company,” subject to specified conditions.
• Signal to Domestic Private Capital: This provision clearly signals openness to the entry of domestic private capital, including large corporate groups, into the nuclear energy sector.
• Rationale for Allowing Private Entry: To mobilise capital, share construction and financial risks, reduce the burden on taxpayer funds in the event of project delays, and ensure quicker site approval and commissioning through increased efficiency.
• Strategic Separation: To prevent the misuse of nuclear material and mitigate proliferation risks, the bill adopts a strategic separation between sensitive and commercial aspects of the nuclear ecosystem.
  • Fuel Cycle Under State Control: The government retains complete control over the sensitive components of the nuclear fuel cycle, including uranium mining, fuel enrichment, and reprocessing.
  • Proliferation Risk and State Authority: These areas involve significant proliferation risks, and therefore, complete control is retained by the State.
  • Power Generation: Private players are permitted to participate in the commercial aspects of nuclear power generation, such as constructing nuclear power plants, generating steam, and operating turbines for electricity generation.

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Key Concerns Related to Nuclear Liability and Regulation

• Low Liability Cap: Operator liability capped at ₹3,000 crore, with the government absorbing excess damages, weakening the polluter pays principle.
• Supplier Immunity: SHANTI Bill limits action against suppliers unless explicit contractual liability or intentional damage is proven, diluting Section 17(b) accountability.
• Regulatory Conflict: Government as operator (NPCIL) and influencer over Atomic Energy Regulatory Board (AERB) appointments raises conflict of interest, eroding public trust and investor confidence.

Conclusion

The SHANTI Bill is a stepping stone to unlock capital for the 100GW dream. However, concerns over liability, safety, and regulatory independence must be addressed to ensure public trust and sustainable nuclear growth.

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