Paper: GS – II, Subject: Polity, Topic: Legislature, Issue: The Shanti Act.
Context:
The Sustainable Harnessing and Advancement of Nuclear Technology for India (Shanti) Act, 2025 is an important law that aims to make nuclear energy a key part of India’s clean and low-carbon energy transition. It supports India’s goal of reducing emissions and achieving net-zero by 2070.
Key Highlights:
Why the Shanti Act was Needed:
- Nuclear power provides clean, reliable, base-load energy, unlike intermittent renewables.
- India aims to reach 100 GW of nuclear capacity by 2047.
- Earlier policies limited private investment, advanced technology, and foreign participation.
- The Act seeks to remove these long-standing barriers.
Three Transformative Shifts Introduced by the Act:
- Private Sector Participation:
- Opening the Door: Allows private companies to participate in nuclear power generation, equipment manufacturing, and fuel-cycle services.
- Partnerships and Joint Ventures: Enables private players to form partnerships and joint ventures, fostering innovation and investment.
- State Control: The government retains control over sensitive aspects of the fuel cycle, ensuring national security.
- Rationalizing Nuclear Liability Regime:
- Addressing Deterrence: Aims to address the disproportionate liability concerns raised by the 2010 Civil Liability for Nuclear Damage Act, which deterred foreign suppliers and investors.
- Global Alignment: Seeks to align India’s liability regime more closely with international practices while preserving safeguards and victims’ rights.
- Promoting Advanced Nuclear Technologies:
- Modular Reactors (SMRs): Creates space for advanced technologies like SMRs, which offer lower upfront costs, enhanced safety features, and flexible deployment.
- Next-Generation Reactors: Encourages the development and deployment of next-generation reactor technologies.
Challenges in Implementation:
Investment & Market Challenges:
- Nuclear projects are capital-intensive and take a long time to build.
- Investors need:
- Predictable electricity tariffs
- Long-term power purchase agreements (PPAs)
- Strong contract enforcement
Regulatory Capacity:
- The Atomic Energy Regulatory Board (AERB) must be:
- More autonomous
- Better staffed and technically equipped
- Regulation must adapt to: Multiple reactor designs, Private operators and Advanced technologies like SMRs.
Role in Climate Policy:
- Nuclear energy provides low-carbon, stable power.
- It complements solar and wind by improving grid stability.
- Nuclear projects should be included in: Climate finance and Green funding frameworks.
Conclusion:
The Shanti Act, 2025 has the potential to transform India’s energy sector by making nuclear power central to climate action. However, success will depend on careful execution, strong regulation, investor confidence, and public trust. If implemented well, it can significantly strengthen India’s clean-energy transition.
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