Syllabus: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
Context
- Parliament enacted the SHANTI Act, overhauling India’s legal framework governing nuclear energy.
- The Act repeals the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.
- It aims to accelerate nuclear capacity expansion and attract private and foreign participation.
Significance of SHANTI Act
- Opens India’s nuclear sector to private companies and foreign investment, earlier restricted to public utilities.
- Supports India’s plan to raise nuclear capacity from 8.8 GW to 100 GW by 2047.
- Seeks to increase nuclear power’s share in electricity generation from 3% to higher levels.
- State-owned utilities plan about 54 GW, with remaining capacity expected from private players.
Key Changes in Liability Framework
- Nuclear safety globally mandates immediate victim compensation, irrespective of fault determination.
- Earlier law allowed operator’s right of recourse against suppliers under three specific conditions.
- SHANTI removes supplier-fault-based recourse, eliminating liability risks for equipment providers.
- Deletion of the term “supplier” addresses concerns of foreign reactor manufacturers.
- This change responds to hesitations following the Indo–U.S. Nuclear Deal (2008).
Compensation and Liability Structure
- SHANTI introduces a graded liability system linked to plant capacity.
- Liability caps:
- ₹3,000 crore for plants above 3,600 MW.
- ₹1,500 crore for 3,600–1,500 MW plants.
- ₹750 crore for 1,500–750 MW plants.
- ₹300 crore for 750–150 MW plants.
- ₹100 crore for plants below 150 MW.
- Existing Indian plants are 3,000 MW or lower, limiting operator exposure.
- Critics noted compensation caps remain far below global accident reparation costs.
Implications for India’s Nuclear Vision
- India’s long-term strategy involves a three-stage programme focused on thorium utilisation.
- Progress remains slow, with the Fast Breeder Reactor delayed until September 2026.
- SHANTI aligns future expansion with Small Modular Reactors (SMRs).
- SMRs require enriched uranium-235, which India lacks domestically.
- SMRs offer flexibility and safety improvements, but produce less power per unit.
- They do not significantly advance India’s thorium-based self-reliant fuel cycle.
Overall Assessment
- SHANTI reduces investment risk and encourages participation in nuclear power generation.
- However, reliance on SMRs may diverge from India’s original thorium-based nuclear roadmap.
