Understanding the SHANTI Bill: A New Era for Nuclear Energy in India

Introduction to the SHANTI Bill

The Union Cabinet has recently approved the Sustainable Harnessing and Advancement of nuclear energy for Transforming India (SHANTI) Bill. This landmark decision marks a significant policy shift by allowing private participation in India's tightly regulated nuclear power sector. This initiative is crucial for achieving the national target of 100 gigawatts of nuclear power capacity by 2047, thus enhancing long-term energy security.

Opening the Nuclear Sector to Private Players

The SHANTI Bill proposes to permit private companies to engage in civil nuclear power generation, albeit under strict government oversight. Although operational participation will be expanded, the Department of Atomic Energy will continue to manage core strategic functions, including nuclear material production, heavy water management, and radioactive waste handling. This reform aims to attract large-scale investments that the public sector alone cannot sustain.

Key Legal and investment reforms

A central aspect of the Bill involves amending India’s civil nuclear liability framework. This amendment intends to protect plant operators and cap the liability of equipment suppliers, addressing long-standing concerns that have previously deterred private and foreign investments. The proposed operator insurance cover is set at ₹1,500 crore per incident through the Indian Nuclear Insurance Pool. Additionally, the Bill facilitates up to 49 percent foreign direct investment and proposes a unified legal framework for atomic energy, including the establishment of a specialized nuclear tribunal.

Role in Energy Transition and Net-Zero Goals

Officials highlight that these reforms are a response to the rising domestic energy demand, the rapid growth of data centers, and India’s commitment to achieve net-zero emissions by 2070. Nuclear power is strategically positioned as a stable, low-carbon base-load source that complements renewable energy. Furthermore, the government has announced a ₹20,000 crore Nuclear Energy Mission dedicated to research and development of small modular reactors (SMRs), with plans to operationalize five indigenous SMRs by 2033.

Exam-Oriented Facts

• India targets 100 GW of nuclear power capacity by 2047.
• The SHANTI Bill allows up to 49% foreign direct investment in nuclear power.
• Nuclear Power Corporation of India Limited operates all existing reactors.
• Small Modular Reactors are particularly suitable for industries and data centers.

Implications for Regulation and Industry

Currently, the Atomic Energy Act restricts nuclear plant operations to the central government and its entities. Experts indicate that private participation necessitates the establishment of an independent regulatory framework for tariff determination and oversight. The Bill is expected to be introduced in Parliament during the winter session, and if enacted, it could fundamentally reshape India’s civil nuclear ecosystem, aligning it more closely with international practices while expanding clean energy capacity.

Frequently Asked Questions (FAQs)

Q1. What is the SHANTI Bill about?
Answer: The SHANTI Bill permits private companies to participate in India's civil nuclear power generation, aiming for 100 GW capacity by 2047 under government oversight.

Q2. How much foreign investment does the SHANTI Bill allow?
Answer: The Bill allows up to 49 percent foreign direct investment in the nuclear power sector, encouraging international participation.

Q3. What are Small Modular Reactors (SMRs)?
Answer: Small Modular Reactors are compact nuclear reactors suited for specific applications, including industries and data centers, enhancing energy efficiency.

Q4. What are the implications of the SHANTI Bill for energy security?
Answer: The Bill is expected to mobilize investments and diversify energy sources, which is essential for ensuring long-term energy security in India.

Q5. When will the SHANTI Bill be introduced in Parliament?
Answer: The SHANTI Bill is anticipated to be presented during the winter session of Parliament, potentially transforming the nuclear energy landscape.

UPSC Practice MCQs

Question 1: What is the primary aim of the SHANTI Bill?
A) To completely privatize the nuclear sector
B) To allow private participation under regulatory oversight
C) To eliminate government control over nuclear energy
D) To focus solely on renewable energy sources
Correct Answer: B

Question 2: What percentage of foreign direct investment does the SHANTI Bill propose?
A) 25%
B) 49%
C) 51%
D) No foreign investment allowed
Correct Answer: B

Question 3: Which organization operates all existing nuclear reactors in India?
A) Nuclear Regulatory Authority
B) Nuclear Power Corporation of India Limited
C) Department of Atomic Energy
D) Ministry of Power
Correct Answer: B

Question 4: What is a key feature of the SHANTI Bill concerning liability?
A) Unlimited liability for operators
B) Capping the liability of equipment suppliers
C) Total elimination of liability
D) Liability only for foreign operators
Correct Answer: B

Question 5: By what year does India aim to achieve 100 GW of nuclear power capacity?
A) 2030
B) 2040
C) 2047
D) 2050
Correct Answer: C