SHANTI Bill Transforms India's Nuclear Sector: Private Entry, Stronger Safety, Capped Liability

• The SHANTI Bill allows private Indian companies and joint ventures to build, own, and operate nuclear power plants, ending the state-run monopoly.
• It establishes a new legal framework for nuclear safety, safeguards, and liability, strengthening the Atomic Energy Regulatory Board (AERB) with statutory backing.
• A graded compensation framework links operator liability to thermal capacity, with caps ranging from Rs 100 crore to Rs 3,000 crore per incident, and the Central Government covering claims beyond these limits.
• The Central Government retains strict control over all nuclear materials, fuel supply, and strategic activities like enrichment, with private operators barred from owning nuclear fuel.
• Concerns exist regarding the adequacy of liability caps, which critics argue are too low for potential major nuclear disasters, and the dilution of supplier accountability.

Why It Matters: SHANTI Bill opens India's nuclear sector to private players with new safety rules and liability caps.