Legal Framework for Nuclear Energy in India

Legal Framework for Nuclear Energy in India
  • Context:

  • The Centre has introduced the SHANTI Bill (Sustainable Harnessing and Advancement of Nuclear energy for Transforming India) in the Lok Sabha.

  • The Bill aims to overhaul the existing legal framework to incentivise private sector participation in nuclear power production.

  • Existing Framework:

  • Currently, the sector is governed by:

  • The Atomic Energy Act, 1962:

  • This act historically created a government monopoly over nuclear power, restricting private players.

  • The Civil Liability for Nuclear Damage (CLND) Act, 2010:

  • This act defines the liability of operators and suppliers in case of nuclear accidents, which has been a concern for foreign suppliers.

  • Proposed Changes in the SHANTI Bill:

  • The new Bill proposes to replace both the Atomic Energy Act, 1962, and the CLND Act, 2010.

  • It removes the monopoly of the Nuclear Power Corporation of India (NPCIL) and allows both Indian and foreign private sectors to manufacture and operate nuclear power plants.

  • It confers statutory status on the Atomic Energy Regulatory Board (AERB), creating a structure answerable to Parliament.

  • Liability Framework:

  • The Bill restricts instances where operators can claim compensation from suppliers.

  • It introduces limits on operator liability and caps the maximum penalty for a severe breach at ₹1 crore.

  • Strategic Goals:

  • The legislative changes aim to scale up India's installed nuclear power capacity from the current 8.8 GW to 100 GW by 2047.

  • This supports India's target of achieving Net-Zero emissions by 2070.