A case against the SHANTI Act, Pg12

Key Highlights:

• The SHANTI Act, passed in Parliament, allows private entities in the nuclear power sector and modifies the liability framework under the CLNDA.
• The Act indemnifies nuclear suppliers, channeling liability to the operator and capping it between ₹100 crore and ₹3,000 crore.
• Total accident liability, including the Centre's, is capped at 300 million Special Drawing Rights (about ₹3,900 crore).
• The Act limits the Atomic Energy Regulatory Board's independence, stipulating that its members be selected by a committee constituted by the Atomic Energy Commission.
• The Act ensures suppliers will not face civil or criminal consequences in India, even if accidents arise from defects in their equipment.
• Nuclear energy has accounted for only about 3% of India’s electricity generation for decades.

Detailed Insights:

• The SHANTI Act ends the Union government’s exclusive control over the nuclear sector, permitting private companies to operate nuclear plants.
• The Act omits the "right of recourse," preventing operators from suing suppliers for accidents caused by defective equipment.
• Clause 46 of the CLNDA, which allowed victims to invoke other laws for remedies, is also omitted by the SHANTI Act.
• Design defects have played a role in major nuclear accidents, including Fukushima and Chernobyl, raising concerns about supplier indemnity.
• The U.S. National Defense Authorization Act seeks to align India's nuclear liability rules with international norms favorable to suppliers.
• The liability cap under the SHANTI Act is significantly smaller than the potential damage, as evidenced by the Fukushima and Chernobyl disasters.
• Protecting agents from consequences creates a "moral hazard," potentially encouraging greater risks in the nuclear industry.
• The Act indemnifies operators for accidents caused by "a grave natural disaster," reversing India’s "absolute liability" framework.
• The government's target of 100 GW of nuclear energy by 2047 seems unviable due to high capital costs and safety concerns.
• The SHANTI Act ensures that private corporations and multinational suppliers can profit from nuclear opportunities without facing regulatory constraints or consequences for accidents.

Key Concepts Involved:

• Civil Liability for Nuclear Damage Act (CLNDA): Establishes the legal framework for compensating victims of nuclear accidents in India.
• Special Drawing Rights: An international reserve asset created by the International Monetary Fund (IMF) to supplement its member countries' official reserves.
• Atomic Energy Regulatory Board: Regulatory authority in India responsible for nuclear and radiation safety.