SHANTI Act 2025 Reform of India’s Civil Nuclear Law

Context

The President of India has granted assent to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India SHANTI Act 2025, passed during the Winter Session of Parliament, replacing the Atomic Energy Act 1962 and the Civil Liability for Nuclear Damage Act 2010

Unified Legal Framework

Scope of the Act
. Establishes a single comprehensive framework for regulation licensing safety and liability
. Applies to India’s civil nuclear energy sector

Laws Replaced
. Atomic Energy Act 1962
. Civil Liability for Nuclear Damage Act 2010

Objectives of the Act

Clean Energy Transition
. Accelerate nuclear power capacity as a low carbon energy source

Private Sector Participation
. Enable private and joint venture participation under strict regulatory oversight

Governance Reform
. Modernise safety liability and oversight mechanisms

Opening of the Nuclear Sector

Eligible Entities
. Indian private companies and government private joint ventures
. Foreign incorporated companies excluded

Permitted Activities
. Construction operation and decommissioning of nuclear power plants
. Fabrication transport trade and storage of nuclear fuel

Safety Oversight
. Mandatory safety authorisation by AERB for all radiation related activities

Revised Nuclear Liability Regime

Liability Principles
. Retains no fault liability for operators
. Continues mandatory insurance coverage

Liability Caps
. Introduces tiered operator liability based on reactor capacity
. Range fixed between ₹100 crore and ₹3,000 crore
. Replaces earlier flat cap of ₹1,500 crore

Government Responsibility
. Central Government bears excess liability beyond operator cap

Operator’s Right of Recourse

Change in Provision
. Removes automatic right of recourse against suppliers

Permitted Recourse
. Allowed only if contractually provided
. Applicable in cases of wilful acts causing damage

Global Alignment
. Brings India in line with international nuclear liability norms

Expanded Territorial Jurisdiction

Cross Border Compensation
. Covers nuclear damage in foreign states caused by incidents in India
. Subject to specified conditions

Statutory Status to AERB
Legal Backing
. Grants statutory status to Atomic Energy Regulatory Board

Composition
. Chairperson one whole time member and up to seven part time expert members

Appointments and Tenure
. Selection through search cum selection committee
. Tenure of 3 years extendable up to 6 years

Atomic Energy Redressal Advisory Council

Nature of Body
. New appellate authority for nuclear sector disputes

Jurisdiction
. Hears appeals against Central Government and AERB decisions

Composition
. Chaired by Chairperson Atomic Energy Commission
. Members include heads of BARC AERB and CEA

Further Appeal
. Lies with Appellate Tribunal for Electricity

Conclusion

The SHANTI Act 2025 introduces structural reforms in India’s civil nuclear sector by promoting regulated private participation strengthening safety institutions and aligning liability norms with global standards to support India’s clean energy and net zero goals

Source : News on Air