A nuclear step towards energy security, Pg10

Key Highlights:

• The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI) was tabled in Parliament to boost nuclear energy production.
• The bill allows up to 49% Foreign Direct Investment (FDI) in specific nuclear activities.
• India aims to increase nuclear power capacity to 22.5 GW by 2032 and 100 GW by 2047.
• The SHANTI Bill addresses concerns regarding supplier liability under the Civil Liability for Nuclear Damage Act (CLNDA).
• Small Modular Reactors (SMRs) are considered a compelling option for India's energy strategy due to their enhanced safety features and lower costs.

Detailed Insights:

• The government views nuclear power as a stable and relatively clean energy source to meet baseload power demands, unlike the uncertainties associated with renewable sources.
• The SHANTI Bill aims to unlock private capital and open up India's nuclear sector by removing the contentious clause in the CLNDA that deterred foreign vendors due to supplier liability concerns.
• Foreign investors, including sovereign funds from West Asia, have shown interest in financing India's nuclear power expansion, particularly in the manufacturing of Small Modular Reactors (SMRs).
• SMRs offer advantages such as lower costs, shorter construction times, reduced fuel requirements, and enhanced safety features, making them a viable option for India's energy mix.
• All entities involved in nuclear production will be required to obtain safety authorization from the Atomic Energy Regulatory Board under the SHANTI Bill.
• Enhanced safety features, guided by the International Energy Agency post the Fukushima incident in 2011, have significantly improved nuclear plant safety.

Key Concepts Involved:

• Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
• Small Modular Reactors (SMRs): Nuclear reactors that are smaller in size and capacity compared to traditional nuclear power plants, offering enhanced safety and flexibility.
• Civil Liability for Nuclear Damage Act (CLNDA): Indian law that establishes the legal framework for liability and compensation in the event of a nuclear accident.