SHANTI Bill

India’s nuclear power programme has long carried the weight of unrealised potential. Despite early technological ambition, legal complexity, liability fears and regulatory uncertainty kept private capital and global partners at arm’s length. Parliament’s passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill is a significant effort. It aims to correct that trajectory.

The legislation seeks not merely to amend but to reset India’s nuclear architecture. The stated ambition is to make nuclear energy a core pillar of clean, reliable power. It targets 100 GW by 2047 as part of India’s long-term decarbonisation strategy.

Why India Needed a Nuclear Reset

For over a decade, India’s civil nuclear programme was constrained by a fragmented legal framework. The Atomic Energy Act and the Civil Liability for Nuclear Damage Act created uncertainty. It was unclear who could build. There was confusion over who would regulate. There was uncertainty over who would pay if something went wrong.

The liability law, shaped by the moral memory of the Bhopal gas tragedy, placed unusually expansive responsibility on suppliers. While ethically compelling, it made India an outlier in global nuclear commerce. The SHANTI Bill replaces this patchwork with a single umbrella law, aligning India closer to international practice without surrendering sovereign control.

Who Can Build — And Who Cannot

SHANTI pragmatically expands capacity by allowing both public and private Indian entities to participate in nuclear power generation. This recognises that scaling nuclear energy requires capital, execution capability and manufacturing depth beyond the state alone.

However, the opening is carefully bounded:

Foreign-incorporated companies are excluded as licensees
Sensitive fuel-cycle activities—enrichment, reprocessing and spent fuel management—remain under exclusive central government control

This calibrated openness balances investment with national security imperatives.

Fixing the Institutional Architecture

A key reform lies in clearer institutional separation. Licensing authority remains with the government, while safety oversight is vested in a strengthened Atomic Energy Regulatory Board (AERB) with firmer statutory backing.

A credible nuclear expansion depends on regulatory capacity—independent inspections, transparent safety standards and enforcement without fear or favour. The Bill’s success will hinge on institutional strength, not legislative intent alone.

Liability: From Moral Exceptionalism to Predictability

Liability has been the most politically sensitive issue in India’s nuclear policy. SHANTI recalibrates the framework toward predictability while retaining safeguards:

Overall liability cap retained at 300 million SDR
Operator’s right of recourse narrowed to contractual terms or wilful misconduct
A new Nuclear Liability Fund shifts part of the burden to the central government
Additional support envisaged through the Convention on Supplementary Compensation (CSC)

This shift is designed to restore insurer and supplier confidence.

Terrorism as a Sovereign Risk

A major departure is the Bill’s treatment of terrorism-related nuclear damage. Liability in such cases is explicitly placed on the central government, not operators.

The logic is clear: terrorism is an uninsurable sovereign risk. The implication is equally clear—if the state assumes last-resort liability, it must also guarantee rigorous security, preparedness and accountability.

Graded Liability and the Fear of Dilution

SHANTI introduces graded liability based on the category of nuclear installation. Since not all facilities pose equal risk, differentiated caps align with mature global practice.

However, public trust will depend on subordinate rules—minimum liability floors, transparent justification for reductions, and regular disclosure of the liability fund’s status.

Putting Victims at the Centre

The Bill significantly broadens the definition of nuclear damage, covering:

Long-term health impacts
Environmental restoration
Economic losses and loss of livelihood
Costs of preventive measures

It also streamlines claims with defined timelines and faster disbursement. In disaster response, speed is justice.

Why Intellectual Property Matters in Nuclear Power

SHANTI takes a forward-looking view by enabling nuclear-related patents through a special inventions regime and amendments to the Patents Act.

Nuclear power today spans materials science, robotics, safety software and advanced manufacturing. A stronger IP ecosystem can integrate Indian firms into global nuclear supply chains and generate high-skill employment.

Foreign Policy and Energy Security Payoff

By aligning closer to international norms, SHANTI revives India’s long-stalled civil nuclear partnerships. This is particularly true with the United States. It also reduces dependence on any single supplier.

In a sector where financing, safety and supply chains are global, credibility matters as much as capacity.

From Debate to Delivery

For nearly 15 years, India lived with a civil nuclear bargain that could not be fully implemented. SHANTI does not promise perfection; it offers workability.

India does not need a flawless nuclear law. It needs one that can be executed. The SHANTI Bill gives the country a second chance to move from hesitation to scale—and from being a nuclear outlier to a serious nuclear power builder.