The Indian government has moved ahead in transforming their nuclear sector with both their Houses of Parliament passing the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill. With this legislation, there is, in fact, a change in policy thinking, with this sector, which had long been dominated by the state, now opening up to greater participation.
What Changes the SHANTI Bill Introduced
In essence, the SHANTI Bill liberalizes the existing barriers that prevented even the private sector from owning and operating Nuclear Power Plants. For the first time in the history of the Indian government, the private company will be allowed to form Joint Venture for the establishment, ownership, operation and decommissioning of Nuclear Facilities after acquiring licenses regarding their safety and security.
Unleashing the Potential for Private Investment
The Bill is positioned by the government as a driver of investment. It eliminates the controversial supplier liability clause and ensures a rationalization of compensation limits in cases of an accident, which reduces risks of cost to technology suppliers and investors. According to the government, this is necessary for India to meet its ambitious target of making 100 gigawatts of nuclear capacity by 2047.
A Unified Legal Framework
Another critical aspect concerning the Bill is the repeal of the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 to be consolidated into one law. This is in a bid to streamline regulation while at the same time ensuring that safety regulation is not compromised. The Bill also proposes to amend the Patents Act.
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Safety, Oversight & Regulation
In liberalizing the industry, it strengthens regulatory control. Licensing involving radiation protection is required for all operators and this Act spars explicitly on when to suspend and when to cancel a license.
Not only in power production, this Act regulates use in health, agricultural, industrial and research sectors involving nuclear and radiation technologies, excluding innovative developments at early stages.
Nuclear Power’s Relation to Climate Objectives
There is a significant connection between the SHANTI Bill and the decarbonization plan of India. Nuclear energy is rapidly being identified as a reliable and low-carbon baseload complement to renewables as the country aims for net zero emissions by 2070.
A stronger private and domestic resources approach is believed to hasten capacity addition without sacrificing either security and sovereignty.
While it does appear to be the beginning of a new era in nuclear power development in India, it will be the implementation phase rather than the intention behind the SHANTI Bill’s enactment that would test whether it would be a reality or only a promise.
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Disclaimer: This article is based on publicly available information and official statements. Details may evolve as rules and implementation guidelines are notified.
