Draft SHANTI Rules 2026: India's Nuclear Liability, Insurance Framework, and the Path to 100 GW by 2047

Why in News

The Department of Atomic Energy (DAE) released the Draft SHANTI Rules, 2026 on August 18, 2026, for public consultation. These rules operationalise the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 — India's most comprehensive nuclear legislation in over six decades — by prescribing detailed provisions on operator liability, financial security, and licensing. Public comments are invited until September 4, 2026.

Background

India's nuclear legal architecture was long governed by two statutes: the Atomic Energy Act (AEA), 1962 — which created a government monopoly over nuclear energy — and the Civil Liability for Nuclear Damage Act (CLNDA), 2010, which introduced a liability regime but controversially extended liability to equipment suppliers, deterring foreign investment and technology transfers.

After prolonged debate spanning over a decade, the SHANTI Bill was introduced by the Minister of State for Science and Technology, Dr. Jitendra Singh, in Parliament on December 15, 2025. It was passed by the Lok Sabha on December 17, by the Rajya Sabha on December 18, and received Presidential assent from President Droupadi Murmu on December 20, 2025.

Current Developments

The Draft SHANTI Rules, 2026 flesh out the Act's skeleton. The key areas addressed are:

• Operator Liability: Strict and no-fault liability is imposed on nuclear installation operators for nuclear damage — including damage that occurs during the transport of nuclear material — without the claimant needing to prove fault.
• Financial Security: Operators must maintain insurance policies, financial security instruments, or a combination of both. Where shares, bonds, or other financial instruments are pledged as security, they must be assigned to the Central Government with a mandatory 1:1.33 security margin (i.e., instruments worth 33% more than the liability must be held at all times).
• Irrevocable Cover: Financial security must remain valid until spent fuel removal is complete, ensuring long-tail nuclear liabilities are always covered.
• Liability Cap Review: An expert group will review maximum civil-liability limits every five years, allowing the framework to evolve with technology and risk assessments.
• Government Installations: Nuclear installations owned by the Central Government may be exempted from private insurance requirements, with the Government itself assuming operator liability.
• Scope of Coverage: The rules cover nuclear power plants and reactors, fuel fabrication facilities, uranium and thorium mines, ore processing plants, and facilities manufacturing radiation sources.

Key Facts

• Full form: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India
• SHANTI Act 2025 received Presidential assent: December 20, 2025
• Acts repealed by SHANTI Act: Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act, 2010
• India's current nuclear capacity: approximately 8.78 GW (as of 2026)
• India's nuclear capacity target: 100 GW by 2047 (Amrit Kaal vision)
• Nuclear regulator: Atomic Energy Regulatory Board (AERB) — now with statutory recognition under SHANTI Act
• Security margin for financial instruments: 1:1.33
• Draft Rules public comment deadline: September 4, 2026
• Draft Rules released by: Department of Atomic Energy (DAE), under Ministry of Science and Technology

Constitutional Provisions

Nuclear energy is a Union Subject under Entry 14 of Schedule VII, List I (Union List) — "Atomic energy and mineral resources necessary for its production." This vests exclusive legislative and executive authority over nuclear energy with Parliament and the Central Government. No state government may legislate on nuclear matters.

Article 246 of the Constitution distributes legislative subjects between the Union and States via the Seventh Schedule. Nuclear energy's placement in the Union List reflects its strategic importance and the need for unified national control.

Legal Framework

• SHANTI Act, 2025 — The parent legislation. Replaces AEA 1962 and CLNDA 2010; permits private-sector participation; grants AERB statutory status; caps supplier liability.
• Atomic Energy Act, 1962 (repealed) — Created a government monopoly; prohibited private sector.
• Civil Liability for Nuclear Damage Act, 2010 (repealed) — Established nuclear liability regime; Section 17(b) on supplier liability was a major deterrent to foreign investment.
• Draft SHANTI Rules, 2026 — Subordinate legislation under SHANTI Act; prescribes liability mechanics, insurance, licensing.
• Vienna Convention on Civil Liability for Nuclear Damage, 1963 — India is not a signatory; the SHANTI framework is largely domestically crafted, though the strict-liability principle is consistent with international practice.

Institutional Framework

• Department of Atomic Energy (DAE) — Under the Prime Minister's Office; the nodal department for nuclear policy.
• Atomic Energy Regulatory Board (AERB) — India's nuclear safety regulator; under SHANTI Act, elevated to statutory body (previously operated only under an executive order of 1983).
• Nuclear Power Corporation of India Ltd (NPCIL) — Public sector entity operating all nuclear plants.
• BHAVINI (Bharatiya Nabhikiya Vidyut Nigam Ltd) — Prototype Fast Breeder Reactor at Kalpakkam.
• IAEA (International Atomic Energy Agency) — India submits to IAEA safeguards under the India-IAEA Safeguards Agreement, 2009 (following the 2008 India-US Civil Nuclear Deal).

Economic Dimensions

India's electricity demand is projected to triple by 2047. Nuclear energy, with its low-carbon baseload profile, is central to India's energy transition. The SHANTI framework is designed to unlock large-scale private capital and international technology transfers — particularly from the US, France, Russia, and Japan — to meet the 100 GW target.

The removal of supplier liability (which previously deterred companies like Westinghouse and Areva/Framatome) is expected to accelerate negotiations for 10 Westinghouse AP-1000 reactors at Kovvada (Andhra Pradesh) and Jaitapur (Maharashtra) with EDF-France (6 EPR reactors). Small Modular Reactors (SMRs) and applications in data centres, green hydrogen production, and semiconductor fabs are also envisaged under the new framework.

Environmental Dimensions

Nuclear power emits no greenhouse gases during operation, with lifecycle emissions comparable to wind power (~12 gCO₂eq/kWh). India's 100 GW nuclear target, if met, could displace approximately 700–800 million tonnes of CO₂ annually. This supports India's Panchamrit commitments at COP26: 500 GW non-fossil fuel capacity by 2030 and net-zero by 2070. The nuclear expansion is also integrated into India's National Action Plan on Climate Change (NAPCC).

Nuclear waste remains a challenge. India follows a closed fuel cycle strategy — reprocessing spent fuel to recover uranium and plutonium — reducing long-term radioactive waste volumes.

Social Dimensions

Nuclear plants generate high-skilled employment — both in construction (10,000–15,000 jobs per GW) and operations. The SHANTI framework is expected to create a large domestic nuclear supply chain, generating employment across metallurgy, precision engineering, electronics, and software. However, land acquisition, displacement of communities near proposed plant sites, and public risk perception remain social challenges requiring transparent community engagement.

International Relations

India signed the landmark India-US Civil Nuclear Agreement (123 Agreement) in 2008, gaining access to nuclear trade despite not being a signatory to the Nuclear Non-Proliferation Treaty (NPT). India is a member of the Nuclear Suppliers Group (NSG) waiver list since 2008. The SHANTI framework directly facilitates implementation of civil nuclear agreements with the US (Westinghouse), France (EDF), Russia (Rosatom — Kudankulam), Japan (MHI, Toshiba), and South Korea. Full NSG membership — which China has blocked — remains a diplomatic goal.

Challenges

• Land acquisition: Communities near Jaitapur (Maharashtra) and Kovvada (AP) have resisted nuclear plant construction, citing displacement and environmental concerns.
• Liability risk calibration: Setting the right liability cap is critical — too low deters victims; too high raises insurance costs and discourages operators.
• Domestic supply chain gaps: India lacks large-scale capacity for nuclear-grade forgings, castings, and precision components; a domestic supply chain must be built.
• Regulatory capacity: AERB's elevation to statutory status is welcome, but it needs independence from DAE, adequate staffing, and funding to credibly regulate private operators.
• Waste management: Long-term storage for high-level radioactive waste remains unresolved; no deep geological repository exists yet.

Government Initiatives

• SHANTI Act, 2025 — Framework legislation enabling private participation.
• PM-PRANAM (PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth) — While not nuclear-specific, promotes sustainable energy.
• National Hydrogen Mission — Nuclear electricity can power electrolysers for green hydrogen.
• India's three-stage nuclear programme: Stage 1 (natural uranium PHWRs) → Stage 2 (fast breeders using Pu + thorium) → Stage 3 (thorium reactors) — pioneered by Dr. Homi Bhabha.

Way Forward

The NITI Aayog's Energy Policy Framework has consistently advocated scaling nuclear as part of India's decarbonisation portfolio. The Economic Survey 2025-26 noted the need for diversified clean energy including nuclear. Key steps ahead:

1. Finalise SHANTI Rules 2026 after public consultation (post September 4, 2026 deadline).
2. Ensure AERB's operational and financial independence from DAE to prevent conflict of interest in private-sector regulation.
3. Expedite inter-governmental agreements with the US, France, and Japan to deploy committed reactor units at Jaitapur and Kovvada.
4. Develop a domestic nuclear component manufacturing ecosystem under Make in India and the Electronics Component Manufacturing Scheme.
5. Achieve NSG full membership to normalise India's position in global nuclear trade without country-specific waivers.

Possible Mains Questions

1. "The SHANTI Act, 2025 marks a paradigm shift in India's nuclear energy governance. Critically examine the changes introduced and their strategic implications for India's energy security and climate goals." (GS-III, 250 words)
2. "The removal of supplier liability under the SHANTI Act was essential to unlock foreign technology transfers, but it raises concerns about accountability for nuclear accidents. Discuss." (GS-III/Ethics, 250 words)

Possible Prelims MCQs

1. Q: What does "SHANTI" stand for in India's 2025 nuclear legislation?
   A: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India
   Explanation: The SHANTI Act, 2025 replaced the Atomic Energy Act, 1962 and the CLNDA, 2010.
2. Q: Under the Draft SHANTI Rules 2026, which ratio must operators maintain as a security margin when pledging financial instruments?
   A: 1:1.33
   Explanation: Instruments worth 33% more than the nuclear liability must be held at all times.
3. Q: The 'three-stage nuclear programme' of India was conceptualised by:
   A: Dr. Homi J. Bhabha
   Explanation: Bhabha's vision: Stage 1 — PHWRs; Stage 2 — fast breeders; Stage 3 — thorium reactors.
4. Q: India's nuclear regulator AERB was created by which instrument?
   A: Presidential Order/Government Resolution, 1983 (now elevated to statutory body under SHANTI Act 2025)
   Explanation: Before SHANTI Act, AERB had no statutory backing — it operated only under an executive order.
5. Q: Nuclear energy in India falls under which entry of the Constitution's Union List?
   A: Entry 14, List I (Union List) — "Atomic energy and mineral resources necessary for its production"
   Explanation: Exclusively a central subject under Schedule VII.

Essay Dimensions

1. Nuclear energy as the backbone of India's clean-energy transition: opportunity and accountability.
2. Private sector participation in strategic sectors: striking the balance between growth and national security.
3. From Bhabha's vision to Amrit Kaal: India's nuclear journey at 100.
4. Liability, insurance, and justice: who bears the cost when atoms split wrong?
5. India's nuclear diplomacy: navigating the NPT-NSG-IAEA triangle.

Interview Questions

1. What is the significance of the SHANTI Act specifically for India's thorium reserves — the world's second-largest?
2. How does India's three-stage nuclear programme differ from the once-through fuel cycle used by most nuclear nations?
3. The SHANTI Act removed supplier liability that was introduced in 2010 — was that the right policy choice from a public interest standpoint?
4. Can AERB, which reports to DAE, truly act as an independent regulator when private operators enter the nuclear sector?
5. India is not an NPT signatory. How does this affect its nuclear diplomacy and global standing?

FAQ

Q: Does the SHANTI Act allow complete private ownership of nuclear plants?
A: No. The Act permits private-sector participation in plant operations, power generation, and equipment manufacturing under regulatory oversight, but sensitive strategic activities (enrichment, reprocessing) remain reserved for the Central Government.

Q: How is India's nuclear liability framework different under the SHANTI Act compared to CLNDA 2010?
A: The CLNDA 2010 controversially allowed operators to seek recourse from suppliers (Section 17b), deterring foreign firms. The SHANTI Act removes this, placing full liability on the operator — consistent with international conventions like the Paris Convention.

Q: What is India's current nuclear power capacity?
A: Approximately 8.78 GW (as of 2026), contributing about 3% of India's electricity generation. The target is 100 GW by 2047.

Further Reading

• PIB Note on SHANTI Act: pib.gov.in
• DAE Official Website: dae.gov.in
• AERB Official Website: aerb.gov.in
• IAEA India Profile: iaea.org