Parliament Passes SHANTI Bill To Overhaul Nuclear Law, Open Sector To Private Participation

The Parliament on December 18, 2025 passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, marking a sweeping overhaul of India's nuclear energy legal framework. The legislation replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, and signals a major policy shift aimed at expanding nuclear power generation while recalibrating regulatory and liability structures.The 1962 Act governed the development, control and use of atomic energy in the country, while the 2010 law laid down the liability and compensation regime in the event of a nuclear incident. By consolidating and updating these frameworks, the new law seeks to align nuclear regulation with India's long term energy transition goals and attract greater investment into the sector.A key feature of the legislation is the opening up of several nuclear activities to non government entities. Under the earlier Atomic Energy Act, licences for working atomic mineral mines and for the production, use or trade of nuclear substances and related equipment could be granted only to central government entities or government companies. The new law empowers the Centre to extend licences for specified activities to Indian private companies, joint ventures between government entities and private companies, and other persons expressly permitted by the central government, while continuing to bar companies incorporated outside India.These specified activities include building, owning or operating nuclear plants or reactors, as well as fabrication, transport, trade and storage of nuclear fuel. At the same time, the law retains a strong regulatory layer by mandating that any activity involving radiation exposure must receive a safety authorisation from the Atomic Energy Regulatory Board.On nuclear liability, Parliament has largely retained the core framework of the Civil Liability for Nuclear Damage Act, 2010. The no fault liability principle continues, under which the operator of a nuclear installation is liable to compensate victims of a nuclear incident irrespective of negligence or wrongdoing. Operators will still be required to maintain insurance coverage, with the central government stepping in to bear liability beyond the prescribed cap. Exemptions from liability in cases such as certain natural disasters have also been retained.However, the law introduces a revised, tiered liability structure. While the 2010 Act fixed a maximum liability of Rs 1,500 crore for nuclear reactors with a thermal power capacity of 10 megawatts or above, the new law provides for liability limits ranging from Rs 100 crore to Rs 3,000 crore, depending on the power capacity of the installation.A significant change has been made to the operator's right of recourse. Under the earlier law, operators could recover compensation paid from suppliers in certain circumstances, including where a nuclear incident arose due to the supply of defective equipment or materials. The new law removes this ground for recourse, while retaining the right where such recovery is contractually provided for or where the incident is caused by a deliberate act intended to cause damage. This change is expected to address long standing concerns raised by equipment suppliers regarding exposure to open ended liability.The legislation also expands the territorial scope of compensation claims. While the 2010 Act confined claims to damage suffered within India's territory or jurisdiction, the new law extends coverage to nuclear damage occurring in the territory of a foreign state due to incidents in India, subject to specified conditions.In another important development, the law grants statutory recognition to the Atomic Energy Regulatory Board, which until now functioned through executive orders. The AERB will be responsible for ensuring the safe use of radiation and nuclear energy and will comprise a chairperson, one whole time member and up to seven part time members appointed by the central government. The chairperson and the whole time member must be persons of eminence in the field of nuclear energy.Appointments to the Board will be made on the recommendation of a search cum selection committee constituted by the Atomic Energy Commission, with the AERB chairperson included when the committee considers appointments to the Board. Members will hold office for an initial term of three years, extendable by a further three years.The law also establishes an Atomic Energy Redressal Advisory Council to hear appeals against orders or decisions of the central government or the AERB. The Council will be chaired by the Chairperson of the Atomic Energy Commission and will include the Director of the Bhabha Atomic Research Centre, the Chairperson of the AERB and the Chairperson of the Central Electricity Authority. Appeals against the Council's decisions will lie before the Appellate Tribunal for Electricity.Click here to read the bill

Parliament Passes SHANTI Bill To Overhaul Nuclear Law, Open Sector To Private Participation

LIVELAW NEWS NETWORK

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

Parliament Passes SHANTI Bill To Overhaul Nuclear Law, Open Sector To Private Participation

LIVELAW NEWS NETWORK

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

This is a premium content
Available exclusively to
Our subscribers