Model Answer

Despite possessing significant technical expertise and long-term strategic vision, India’s nuclear power programme has remained underutilised, contributing a modest share to the overall energy mix. A key reason has been a complex and globally misaligned legal–liability regime that discouraged private and international participation. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill seeks to address these structural constraints and reposition nuclear energy as a reliable pillar of India’s clean energy transition.

Balancing Energy Security

The SHANTI Bill explicitly links nuclear power with India’s long-term energy security and decarbonisation goals. By setting an ambitious target of 100 GW of nuclear capacity by 2047, it recognises nuclear energy as a stable, low-carbon baseload source that can complement intermittent renewables such as solar and wind. The bill opens the sector to both public and private domestic players, thereby expanding investment capacity, accelerating project execution, and reducing overdependence on coal. At the same time, by excluding foreign companies as licensees, it seeks to preserve strategic autonomy and sovereignty over critical energy infrastructure.

Strengthening Safety and Liability Architecture

A major reform under the SHANTI Bill lies in rationalising nuclear liability and safety regulation. By replacing the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 with a unified legal framework, the bill reduces regulatory fragmentation. Operator liability is capped at 300 million Special Drawing Rights (SDR), in line with international conventions, while additional compensation is ensured through a Nuclear Liability Fund, providing financial certainty without diluting victim protection.

The bill also broadens the definition of nuclear damage and introduces a streamlined claims process, ensuring faster and more predictable compensation. Importantly, it recognises terrorism as a sovereign risk, placing responsibility on the central government for damages arising from such acts. Safety oversight is retained with the state through a strengthened Atomic Energy Regulatory Board (AERB), reinforcing regulatory independence and public confidence.

Facilitating Global Integration

The SHANTI Bill aims to integrate India into the global nuclear mainstream by aligning liability, compensation, and regulatory norms with international best practices. This alignment enhances India’s credibility as a nuclear commerce partner and facilitates collaboration with technologically advanced countries, particularly the United States. The introduction of a special inventions and patent regime for nuclear-related technologies enables Indian firms to participate more actively in global nuclear supply chains, moving beyond reactor operation to high-value manufacturing and innovation.

Conclusion

While the SHANTI Bill is a bold and pragmatic reform, its success will depend on effective implementation, regulatory capacity of the AERB, and sustained public trust in nuclear safety. Concerns regarding exclusion of foreign licensees and environmental safeguards will require careful policy calibration. Nevertheless, by balancing energy security, safety, and global integration, the SHANTI Bill represents a decisive step toward transforming nuclear power from a theoretical option into a practical and reliable component of India’s clean energy future.