New Delhi: The government recently introduced a new bill in the Lok Sabha aimed at making significant changes to the laws governing India’s civil nuclear sector. This will involve opening it up to private participation and implementing a new liability system to address the concerns of industry partners.
Minister of State Jitendra Singh said, “The Sustainable Harnessing and Advancement of Nuclear India (SHANTI) Bill, 2025, aimed at transforming India, will replace the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, which are considered impediments to the growth of this sector.”
What does the bill contain?
According to news agency PTI, the bill exempts equipment suppliers for nuclear power plants from liability for a nuclear incident, which is limited solely to the operator, except in cases caused by certain types of severe natural disasters, armed conflict, hostilities, civil war, rebellion, or terrorism.
The law further states, “The maximum amount of liability in respect of each nuclear incident shall be such amount in rupees equivalent to or exceeding three hundred million Special Drawing Rights, as the Central Government may specify by notification.” According to PTI, Special Drawing Rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund.
Singh said the new law is designed to fulfill the objectives of increasing the share of nuclear energy in India’s total energy mix, facilitating innovation in nuclear science and technology, expanding its use in non-power applications, and continuing to uphold India’s commitments to safety, security, safeguards, and nuclear liability.
According to PTI, the bill also provides for the creation of an Atomic Energy Redressal Advisory Council for the settlement of disputes. This also grants legal authority to the Atomic Energy Regulatory Board, the nuclear sector regulator, which was established through an executive order under the Atomic Energy Act of 1962.
Its provisions mandate stringent penalties for anyone involved in breaking or violating the law. Penalties range from five lakh rupees for minor violations to a maximum of one crore rupees for serious offenses.
The bill proposes that any company, other than a government or government-controlled department, institution, or corporation, as defined under Section 2(20) of the Companies Act, 2013, can apply to the central government for a license to construct, own, operate, or decommission a nuclear power plant or reactor.
Private companies from outside India not permitted
However, private companies incorporated outside India will not be permitted to apply. Private companies can also apply for licenses to manufacture nuclear fuel, which includes converting, refining, and enriching Uranium-235 to a specified threshold value, or the production, use, processing, or disposal of other prescribed substances notified by the central government.
They will also be permitted to transport or store nuclear fuel or spent fuel, import or export it, acquire or possess nuclear fuel or prescribed equipment, or any technology or software that can be used for the development, production, or utilization of nuclear energy.
