The SHANTI Act 2025
SHANTI = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India
What is the SHANTI Act, 2025?
The President of India gave assent to the SHANTI Act, 2025.
It was passed during the Winter Session of Parliament.
The Act provides a new legal framework for India's nuclear energy sector.
It aims to expand nuclear power safely while allowing regulated private participation.
Acts Replaced by the SHANTI Act
1. Atomic Energy Act, 1962
Regulated the development and peaceful use of atomic energy in India.
Initially, nuclear activities were under the exclusive control of the Central Government.
Amendments in 1986, 1987 and 2015 allowed government companies and joint ventures to participate.
2. Civil Liability for Nuclear Damage (CLND) Act, 2010
Provided compensation to victims of nuclear accidents.
Introduced the No-Fault Liability Principle (victims need not prove negligence).
Objectives of the SHANTI Act
Increase clean and reliable nuclear energy production.
Help India achieve its Net-Zero emissions target.
Meet the country's growing baseload electricity demand.
Allow regulated public-private participation in nuclear power.
Promote advanced technologies like:
Small Modular Reactors (SMRs)
Thorium Reactors
AI-driven nuclear systems
Strengthen nuclear safety and regulation.
Promote nuclear research and non-power applications.
PROVISIONS:
1. Grant of Licence and Safety Authorization
The Central Government can grant licences for nuclear activities.
Licences can be given to:
Government entities
Indian private companies
Joint Ventures
Licence is compulsory for:
Nuclear plants
Fuel handling
Related nuclear trade
Licences are:
Time-bound
Based on capability
Non-transferable
Licence may be cancelled for:
National security concerns
Public safety risks
Hostile ownership
Regulatory violations
Financial distress
If a licence is cancelled, the Government may take over the facility.
AERB Safety Approval
Radiation-related activities require approval from the Atomic Energy Regulatory Board (AERB).
Strategic activities remain under the exclusive control of the Central Government, including:
Uranium enrichment
Spent fuel reprocessing
Heavy water production
2. Radioactive Substances and Radiation Facilities
Safety approval is compulsory for:
Manufacturing
Use
Transport
Import
Export
Disposal of radioactive materials
The Central Government can:
Conduct inspections
Maintain a national registry
Issue emergency directions
Take control of radioactive materials during emergencies
3. Mining of Uranium and Thorium
Mining of Uranium and Thorium remains under the exclusive control of the Central Government.
Any discovery must be reported immediately.
Extracted minerals belong to the Government.
Low-grade radioactive waste will be treated as hazardous waste.
The Government can acquire land if required for public or national interest.
4. Research and Innovation
Peaceful nuclear research is allowed.
Most research does not require a licence.
Activities related to national security still require Government approval.
Research must protect:
Human safety
Public health
Environment
Limited quantities of radioactive substances may be permitted under specified conditions.
5. Duties and Liability
Nuclear operators are mainly responsible for:
Safety
Security
Regulatory compliance
Operators must follow all inspection and safety rules.
The Act follows the No-Fault Liability Principle.
Operator liability has fixed limits.
Overall liability limit is 300 million Special Drawing Rights (SDRs) or a higher amount notified by the Government.
Compensation beyond the operator's limit is paid by the Central Government.
Operators (except Government installations) must have insurance.
Operators can recover compensation only if:
It is provided in a contract, or
Damage was caused intentionally.
6. Atomic Energy Regulatory Board (AERB)
AERB gets statutory status.
It becomes India's highest nuclear safety regulator.
AERB will:
Set safety standards
Grant safety approvals
Conduct inspections
Ensure compliance
Advise during nuclear emergencies
Composition:
Chairperson
One Whole-time Member
Up to 7 Part-time Members
Members are appointed by the Central Government.
Chairperson and Whole-time Member must be eminent nuclear experts.
Members serve a 3-year term.
The term may be extended for another 3 years.
7. Inspection and Enforcement
The Central Government and AERB can:
Inspect nuclear facilities
Conduct investigations
Search and seize materials
Suspend activities
Seal facilities
Cancel licences
These powers ensure:
Public safety
Environmental protection
Regulatory compliance
8. Powers of the Central Government
The Centre has overall control over:
Nuclear policy
Nuclear safety
Waste management
Emergency response
It can:
Acquire nuclear materials
Control nuclear installations
Regulate tariffs
Control patents
Protect restricted information
Issue exemptions
Issue binding directions
During emergencies, the Centre can take full control of nuclear facilities.
9. Review and Appeal
The Act creates the Atomic Energy Redressal Advisory Council.
It reviews disputes against orders of:
Central Government
AERB
Compensation matters are excluded.
Appeals go to the Appellate Tribunal for Electricity (APTEL).
Further appeal lies with the Supreme Court.
10. Restricted Information
The Government can declare sensitive nuclear information as Restricted Information.
This includes information on:
Nuclear facilities
Nuclear materials
Nuclear technology
Nuclear research
Nuclear operations
Such information cannot be:
Shared
Published
Collected without permission
It is exempt from the Right to Information (RTI) Act, 2005.
11. Compensation for Nuclear Damage
Victims receive compensation under the No-Fault Liability System.
Compensation applies to accidents occurring:
In India
India's maritime zones
Certain foreign territories
Claims are decided by:
Claims Commissioner, or
Nuclear Damage Claims Commission (NDCC)
Claims should be decided within 3 months.
Compensation must be paid within 15 days after the award.
12. Nuclear Damage Claims Commission (NDCC)
NDCC consists of:
One Chairperson
Six Members
Chairperson must be a serving or retired High Court Judge.
Members must have:
Legal expertise, or
Five years' experience as Claims Commissioner
Members serve a 3-year term.
They can be reappointed once.
Maximum age is 67 years.
13. Offences and Penalties
Monetary penalties range from ₹50,000 to ₹1 crore.
Serious violations may lead to imprisonment.
Liability applies to:
Companies
Responsible officers
Government departments
Only certain offences can be compounded.
14. Miscellaneous Provisions
The Central Government will provide grants to AERB.
AERB accounts will be audited by the CAG.
Reports must be submitted to Parliament.
Civil courts cannot interfere in matters covered by the Act.
Officials acting in good faith receive legal protection.
The Centre can:
Amend penalty schedules
Make rules
Frame regulations
Issue directions
Way Forward
Strengthen the independence of AERB.
Increase transparency in nuclear regulation.
Review liability limits and insurance coverage.
Ensure safe and accountable private participation.
Improve compensation mechanisms for victims.
Encourage wider public consultation before implementation.
📌 Quick Revision (Exam Points)
SHANTI = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India.
Replaces Atomic Energy Act, 1962 and CLND Act, 2010.
Supports Net-Zero goals through nuclear energy.
Allows regulated private participation.
Promotes SMRs, Thorium Reactors, and AI-based technologies.
AERB becomes a statutory regulator.
Strategic nuclear activities remain under Central Government control.
Uranium and Thorium mining remain exclusive to the Centre.
Continues the No-Fault Liability system.
Maximum operator liability: 300 million SDRs.
Creates the Atomic Energy Redressal Advisory Council.
Appeals lie with APTEL and then the Supreme Court.
Sensitive nuclear information is exempt from RTI.
Creates the Nuclear Damage Claims Commission (NDCC).
Penalties range from ₹50,000 to ₹1 crore, with imprisonment for serious offences.
AERB accounts are audited by the CAG and reported to Parliament.
Significance of the SHANTI Act, 2025
1. Modernizes India's Nuclear Governance
- Replaces the Atomic Energy Act, 1962 and CLND Act, 2010 with a single law.
- Creates a modern and updated legal framework for nuclear energy.
- Aligns nuclear laws with current technology and safety requirements.
2. Supports Large-Scale Nuclear Expansion
- Helps India achieve its Net-Zero emission targets.
- Meets the country's growing baseload electricity demand.
- Reduces dependence on fossil fuels.
- Complements renewable energy by providing continuous power supply.
3. Encourages Regulated Private Participation
- Allows Indian private companies to participate in the nuclear sector.
- Mobilizes private investment and technology.
- Promotes advanced nuclear technologies like:
- Small Modular Reactors (SMRs)
- Thorium-based reactors
4. Strengthens Nuclear Safety Regulation
- Gives statutory status to the Atomic Energy Regulatory Board (AERB).
- Strengthens:
- Safety oversight
- Nuclear inspections
- Regulatory enforcement
- Earlier, AERB worked only as a delegated authority under the Atomic Energy Act, 1962.
5. Improves Liability and Compensation
- Continues the No-Fault Liability system.
- Provides fixed liability limits for operators.
- Ensures speedy compensation through a dedicated claims mechanism.
- Improves investor confidence while protecting victims.
6. Strengthens National Security
- Gives the Central Government greater control over:
- Nuclear materials
- Restricted information
- Emergency response
- Allows the Government to take operational control during national or nuclear emergencies.
Concerns Raised over the SHANTI Act, 2025
1. Dilution of Supplier Liability
- The Bill weakens the supplier liability provisions of the CLND Act, 2010.
- Suppliers are liable only if:
- It is mentioned in the contract, or
- There is proof of deliberate wrongdoing.
- Critics fear this reduces supplier accountability.
- It may repeat issues seen after the Bhopal Gas Tragedy, where foreign suppliers largely escaped liability.
2. Inadequate Liability Cap
- Operator liability is capped at about ₹3,000 crore.
- Critics argue this is too low for major nuclear disasters.
- Nuclear accidents like:
- Fukushima (Japan)
- Chernobyl (Ukraine)
caused much higher economic and environmental losses.
- Any compensation beyond the cap falls on the public exchequer (Government).
3. Risk of Privatization Without Strong Safeguards
- Private participation in a high-risk sector raises safety concerns.
- Critics fear:
- Cost-cutting
- Reduced safety standards
- Concentration of control among large corporations.
- Strong monitoring will be essential.
4. Weak Regulatory Independence
- AERB gets statutory status.
- However, its members are still appointed by the Central Government.
- Critics believe this may reduce the regulator's independence.
- Political influence may affect safety decisions.
5. Executive Overreach
- The Bill gives wide powers to the Central Government.
- The Centre can:
- Acquire nuclear assets
- Exempt facilities
- Take over operations
- Assume liability
- Critics fear excessive centralization with limited parliamentary oversight.
6. Limited Victim-Centric Approach
- The Bill focuses more on procedures than victims.
- It does not make:
- Public hearings
- Environmental Impact Assessments (EIA)
- Community consultation
mandatory in every case.
- This may reduce access to justice for affected communities.
7. Insurance Exemption for Government Plants
- Government-owned nuclear installations are exempt from mandatory insurance.
- Critics say this:
- Reduces transparency.
- Increases the financial burden on taxpayers after accidents.
8. RTI Exemption
- The Bill exempts restricted nuclear information from the RTI Act, 2005.
- Critics fear excessive secrecy.
- It may reduce:
- Transparency
- Public accountability
- Whistleblower protection
📌 Quick Revision
Significance
- Replaces Atomic Energy Act, 1962 & CLND Act, 2010.
- Modernizes India's nuclear laws.
- Supports Net-Zero and energy security.
- Allows regulated private participation.
- Promotes SMRs and Thorium reactors.
- Gives statutory status to AERB.
- Strengthens safety and compensation mechanisms.
- Improves national security and emergency preparedness.
Concerns
- Weakens supplier liability.
- ₹3,000 crore liability cap may be insufficient.
- Private participation may affect safety.
- AERB may lack full independence.
- Gives excessive powers to the Central Government.
- Victim protection measures may be inadequate.
- Government plants are exempt from mandatory insurance.
- Restricting information under RTI may reduce transparency.
🎯 Prelims Keywords
- SHANTI Act, 2025
- Atomic Energy Act, 1962
- CLND Act, 2010
- No-Fault Liability
- Supplier Liability
- 300 Million SDR / ₹3,000 Crore Liability Cap
- Small Modular Reactors (SMRs)
- Thorium Reactors
- AERB (Statutory Regulator)
- Restricted Information
- RTI Exemption
- Bhopal Gas Tragedy
- Fukushima
- Chernobyl
- Net-Zero Emissions
