Need to strike a balance, says SC on SHANTI Act petition, Pg9

Key Highlights:

• The Supreme Court is reviewing the SHANTI Act of 2025, which governs nuclear energy in India.
• The petition challenges the Act for capping liability for private nuclear operators at low levels and exempting suppliers from liability.
• The petitioner argues the liability cap of 300 million Special Drawing Rights is insufficient for potential damages.
• The Chief Justice emphasized the necessity of nuclear power for India's energy needs, considering limitations on coal, forestry, and gas.

Detailed Insights:

• The SHANTI Act aims to promote nuclear energy by allowing private and foreign companies to operate nuclear plants.
• The Act caps operator liability at approximately ₹3,000 crore, which is argued to be less than 0.1% of damages caused by Chernobyl or Fukushima.
• Exempting suppliers from liability may incentivize them to compromise on safety to increase profits.
• The court will examine if the Act is unconstitutional, manifestly unjust, or arbitrary in its provisions.
• The government argues nuclear power is essential to meet energy requirements given constraints on other energy sources.

Key Concepts Involved:

• SHANTI Act: Legislation promoting nuclear energy by allowing private operation of plants.
• Special Drawing Rights: An international reserve asset created by the International Monetary Fund (IMF).
• Liability Cap: A legal limit on the amount of compensation payable for damages.