Discuss the significance of the SHANTI Act, 2025 in reforming India's nuclear liability and licensing regime. What challenges remain in its implementation?

Q. Discuss the significance of the SHANTI Act, 2025 in reforming India's nuclear liability and licensing regime. What challenges remain in its implementation? (15 marks, 250-350 words)

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, which received Presidential assent on 21 December 2025, repeals both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 [1]. It marks a decisive shift from state monopoly to regulated private participation, and is central to India's target of 100 GW nuclear capacity by 2047 [2].

Reform of the liability regime - Replaces CLNDA's flat ₹1,500 crore operator liability with a graded, capacity-linked structure — ₹100 crore for small and fuel-cycle facilities up to ₹3,000 crore for plants above 3,600 MW [1]. - Caps overall liability per incident at the rupee equivalent of 300 million SDR, aligning India with international conventions [1]. - Removes the right of recourse against suppliers for defective equipment — the single biggest deterrent to foreign reactor vendors post-2010 [1].

Reform of the licensing regime - Permits non-government companies and joint ventures (excluding foreign-incorporated companies) to build, own and operate plants, fabricate fuel, and conduct peaceful-purpose R&D [1][2]. - Grants the Atomic Energy Regulatory Board statutory status, empowering it to frame regulations and take enforcement action independently, ending its dependence on executive orders [1][2]. - Creates two-tier gatekeeping: a Central Government licence plus AERB safety authorisation [2].

Challenges in implementation - Rules not yet notified — as of July 2026 they remain in the drafting stage, so no private licence can be processed [3]. - Regulatory capacity: AERB must rapidly build technical staff and independence to oversee multiple private operators. - Investor caution: removal of supplier recourse aids vendors, but graded caps still leave operators exposed; insurance-pool depth is untested. - Sovereign carve-outs on enrichment, heavy water and spent-fuel management keep private players dependent on government fuel-cycle services [2][3].

In sum, SHANTI converts a closed, liability-burdened sector into a rule-based, investment-friendly one. Its promise now hinges on timely notification of rules, a well-resourced statutory regulator and transparent licensing — steps that would let nuclear energy anchor India's 2070 net-zero commitment while keeping strategic control firmly sovereign.

(~325 words)

Sources: 1. PRS Legislative Research — Bill Summary, The SHANTI Bill, 2025 — repeal of AEA 1962 and CLNDA 2010, graded ₹100–3,000 crore operator liability, 300 million SDR cap, removal of supplier recourse, private/JV licensing, AERB statutory status 2. PIB — The SHANTI Act, 2025 (Department of Atomic Energy) — 100 GW by 2047 target, private scope (build-own-operate, fuel fabrication, R&D), licence plus AERB safety authorisation, government-retained fuel-cycle activities 3. PIB Parliament Question — Private Sector Participation in Nuclear Energy (23 July 2026) — Rules under the Act still in drafting stage; licence applications to follow notification