CivilsKash
Nuclear Sector Reform Push: Shanti Bill and Energy Rules Explained
The Union government is considering legislative and rule-based changes, including the proposed “Shanti Bill” and amendments to rules under the Atomic Energy Act, 1962, to open India’s nuclear power sector to foreign investment and technology, long constrained by liability concerns.
At the core is the Civil Liability for Nuclear Damage Act, 2010, whose supplier liability clause under Section 17(b) has deterred global nuclear suppliers, unlike international practice under the Convention on Supplementary Compensation (CSC) to which India is a signatory.
The Shanti Bill is expected to provide a clearer, insurance-backed liability framework, while changes in nuclear energy rules may enable foreign equity participation in nuclear projects beyond current limits, without amending the Constitution.
This reform push aligns with India’s goal of expanding nuclear capacity from about 7 GW to 22 GW by 2031 as part of its low-carbon energy transition and climate commitments.
The move reflects a balancing act between energy security, climate goals, and public safety, while testing India’s ability to reconcile domestic law with global nuclear liability norms, a key governance and policy issue for UPSC.
At the core is the Civil Liability for Nuclear Damage Act, 2010, whose supplier liability clause under Section 17(b) has deterred global nuclear suppliers, unlike international practice under the Convention on Supplementary Compensation (CSC) to which India is a signatory.
The Shanti Bill is expected to provide a clearer, insurance-backed liability framework, while changes in nuclear energy rules may enable foreign equity participation in nuclear projects beyond current limits, without amending the Constitution.
This reform push aligns with India’s goal of expanding nuclear capacity from about 7 GW to 22 GW by 2031 as part of its low-carbon energy transition and climate commitments.
The move reflects a balancing act between energy security, climate goals, and public safety, while testing India’s ability to reconcile domestic law with global nuclear liability norms, a key governance and policy issue for UPSC.