Overview
The newly passed Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 has significantly altered the liability laws concerning nuclear accidents in India. A key change is the exemption of suppliers, both foreign and domestic, from any statutory liability, while capping the liability of nuclear plant operators at ₹3,000 crores. This has sparked considerable debate and criticism from opposition MPs, lawyers, and nuclear scientists.
Key Provisions of the SHANTI Act
Legislative Changes
The SHANTI Act replaces two existing laws governing India’s nuclear sector:
- The Atomic Energy Act, 1962
- The Civil Liability for Nuclear Damage Act, 2010
The Act received Presidential assent from Droupadi Murmu on December 21, following its passage through both Houses on December 17 and 18. The Centre declined to refer the Bill to a Parliamentary Standing Committee for further scrutiny.
Civil Liability Aspects
The Act stipulates that the nuclear plant operator is responsible for any incident occurring during installation, transport of material prior to installation, and after. This responsibility extends to loss of life, work, injury, and damages. However, the liability is capped:
- ₹3,000 crore for plants with installed capacity above 3600 MW.
- ₹100 crore for plants with capacity less than 150 MW.
If the liability exceeds these limits, the Central Government will bear the excess.
Exemptions from Liability
The Act exempts the operator from liability if the incident occurs due to:
- A natural disaster
- Armed conflict, hostility, civil war, insurrection, or terrorism
- Damage suffered by a person due to their own negligence
In these cases, the Central Government assumes the liability. Plants can also be exempted if the risk involved is deemed ‘insignificant’ by the Centre. Notably, the Act makes no mention of supplier liability.
Concerns and Criticisms
Opposition Concerns
Opposition MPs, lawyers, and nuclear scientists have raised concerns about:
- Single composite license for several processes
- Statutory vacuum
- Absence of a long-term radioactive waste management plan
- Restricted information
- Dilution of civil liability in case of nuclear incidents/malfunction
Liability Cap Concerns
Dr. E.A.S Sharma, former Principal Adviser (Energy), pointed out that the liability of the Fukushima disaster in Japan is about $200 billion and likely to increase. He questioned the adequacy of a ₹3,000 crore cap in the event of a similar disaster in India.
Defense of Graded Liability
Union MoS Jitendra Singh defended the graded liability in Parliament, stating that it provides a level-playing field and encourages participation at every scale. He claimed that SHANTI ensures fair risk-sharing, responsible participation, and a safety-first approach by imposing higher liability on large reactors and lower liability on small reactors.
Risk of Substandard Material
Dr. Sharma countered that even with lower installed capacity, a nuclear accident can have widespread effects, affecting people’s health and causing radioactive contamination. He noted that the use of substandard material and design defects are common in the global nuclear industry.
Incentive to Cut Corners
Senior advocate Prashant Bhushan warned that a low liability cap could incentivize suppliers and operators to cut corners. He argued that capping liability at a low amount contravenes Article 21 – the Right to Life, as it endangers the lives of people and virtually exempts the supplier and the operator.
Strain on Centre’s Budget
Dr. Sharma highlighted the potential strain on the Centre’s budget, noting that a nuclear accident like Fukushima could consume a significant portion of the annual budget expenditure, impacting social justice schemes, education, health, and infrastructure.
Atomic Energy Regulatory Board (AERB)
Independence Concerns
Dr. Sharma explained that after the Fukushima disaster, there was a move to constitute an independent nuclear regulatory authority. However, the Department of Atomic Energy remained silent after the Parliament Committee made suggestions to strengthen the autonomy of the regulator. The SHANTI Act constitutes the Atomic Energy Regulatory Board (AERB) but does not make it independent.
Functions of AERB
Under SHANTI, the AERB is a seven-member board with all appointees made by the Centre. The Board’s functions include:
- Setting limits of radiation exposure to workers and the public
- Setting limits for radioactive releases and discharges to the environment
- Setting safety standards in all aspects of operation, working conditions, transport, waste disposal, etc.
- Granting safety authorization
- Regulating nuclear facilities
- Advising the Centre on safety, radiological surveillance, and preparedness in response to nuclear emergencies
In case of a nuclear incident, the AERB will provide its recommendations within fifteen days. The Board can also exempt any radioactive material or any radiation generating plant from the requirement of safety authorization.
Exam Relevance
The SHANTI Act is highly relevant for the UPSC Civil Services Exam, particularly for GS Paper II (Government Policies and Interventions) and GS Paper III (Infrastructure: Energy, Disaster Management, Science and Technology). Understanding the provisions and criticisms of the Act is crucial for answering questions related to nuclear energy policy, regulatory frameworks, and disaster preparedness in India.