Key features of SHANTI Act
Context:
The SHANTI Act, passed in the Winter Session of Parliament, marks a significant shift in India’s nuclear energy policy.
It opens the nuclear power sector to private entities and fundamentally alters the liability framework established under the Civil Liability for Nuclear Damage Act (CLNDA)
Key Features & Liability Structure:
The Act ends the Union government's exclusive control over the sector, allowing private entities to operate nuclear power plants.
A critical departure from the original CLNDA is the indemnification of suppliers.
The Act protects suppliers from liability in the event of a nuclear accident caused by defective equipment or services.
The Act places a "cap" on the financial liability of operators in case of a disaster.
The operator’s liability is capped between 100 crore for small plants and 3,000 crore for the largest plants.
It omits the “right of recourse” that allowed operators to sue suppliers for accidents caused by defective equipment.
The legislation limits the legal avenues available for victims to seek remedies and compensation following a nuclear incident.
Concerns Raised:
Cap on Liability:
This cap is criticized for being far lower than the potential damages seen in major global accidents like Fukushima and Chernobyl.
Private nuclear operators might have faced adverse financial consequences in the absence of such a cap.
Moral Hazard:
By capping liability and indemnifying suppliers, the Act creates a "moral hazard."
It reduces the financial incentive for the industry to establish resilient, safe plants, as they do not bear the full cost of a potential disaster.
Safety Accountability:
Critics argue that allowing private corporations to profit from commercial opportunities (like the costly Westinghouse AP1000 reactors) without facing consequences for accidents compromises safety and accountability.
Significance of Nuclear Energy in India:
Nuclear energy has accounted for only about 3% of India’s electricity generation for decades.
2.6 GW by the year 2000
6.78 GW in 2020