​Stepping stone, Pg6

Key Highlights:

• India's nuclear power sector contributed approximately 3% of the nation's electricity in 2024-25.
• The government aims to achieve 100 GW of nuclear capacity by 2047, including at least five indigenous small modular reactors (SMRs) by 2033.
• The SHANTI Bill proposes to broaden the scope of entities that can build and operate civil nuclear facilities by including government entities, joint ventures, and other companies.
• The bill caps operator liability for a nuclear incident at ₹3,000 crore.

Detailed Insights:

• The SHANTI Bill aims to attract domestic private capital into the nuclear sector to meet the ambitious 100 GW target by diversifying construction risk.
• The bill seeks to balance private participation in plant delivery and supply chains while retaining state control over sensitive fuel cycles to prevent nuclear proliferation.
• By consolidating safety, enforcement, dispute resolution, and participation terms into a single statute, SHANTI intends to reduce legal ambiguities, transaction costs, and approval timelines for new entrants.
• The bill's liability provisions, particularly the capped operator liability of ₹3,000 crore, raise concerns about adequacy for victims and environmental remediation.
• The exemption of the Centre’s nuclear installations from mandatory insurance requirements necessitates transparent public accounting.
• The dependence of supplier accountability on contractual agreements may lead to inconsistencies in recourse across different projects.
• The bill's governance structure, which grants significant influence to the Centre and the Atomic Energy Commission in appointments, may impact regulator independence and investor confidence.

Key Concepts Involved:

• Small Modular Reactors (SMRs): Nuclear reactors that are smaller in size, factory-fabricated, and transportable for easier deployment.
• Nuclear Proliferation: The spread of nuclear weapons, materials, technology, or expertise to countries not recognized as "Nuclear Weapon States".
• Atomic Energy Commission: The main body governing nuclear activities in India.