N-energy Bill rules likely to open space for foreign funding, Pg3

Key Highlights:

• The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI), aims to repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.
• The new rules are likely to allow potential foreign funding in the nuclear sector.
• The Sabko Bima Sabko Raksha (Amendment of Insurance Laws) Bill, 2025 was passed to reform India's insurance framework.
• The amendment will increase the FDI limit in Indian insurance companies to 100%.

Detailed Insights:

• The SHANTI Bill is driven by the need for base load alternatives to coal and capital to scale up nuclear capacity.
• Sovereign funds from West Asia have shown interest in investing in India's nuclear power sector, including Small Modular Reactors (SMRs) manufacturing.
• The Insurance Laws Amendment Bill also reduces the Net Owned Funds requirement for foreign reinsurers from Rs 5,000 crore to Rs 1,000 crore.
• IRDAI will have increased enforcement powers, including the authority to recover wrongful gains.
• The Bill empowers LIC to establish new zonal offices without prior government approvals for faster expansion.
• India's insurance penetration has increased to 3.75-8% from 3.3% in 2014-15, and insurance density has risen to US dollars 97 from US dollars 35 in 2014-15.

Key Concepts Involved:

• FDI: Investment made by a firm or individual in one country into business interests located in another country.
• IRDAI: A statutory body tasked with regulating and promoting the insurance industry in India.
• SMRs: Small Modular Reactors are nuclear fission reactors that are smaller than conventional nuclear reactors.