LS Passes Nuclear Energy Bill, Opens Door to Privatization

Paper: GS-II, Subject: Polity, Topic: Legislative, Issue: SHANTI Bill, 2025

Context:

The Lok Sabha passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025.

  • The Bill opens India’s civil nuclear sector to private and foreign companies a major policy shift from decades of state monopoly.
  • Despite Opposition protests, the Bill was cleared and will now move to the Rajya Sabha.

Key Changes Introduced by the Bill

Private companies can operate nuclear power plants

  • Earlier, only the government-run NPCIL could run nuclear plants.
  • Now private and foreign firms can build, operate, and manage them.

Repeals older laws that restricted private participation

  • Amends atomic energy legislation to open civil nuclear activity to private entities.

Operator liability is capped

  • The operator’s accident liability is limited to the capacity of the plant.
  • Critics say this reduces safety accountability.

Govt retains control of nuclear waste

  • Only the Union government will manage nuclear waste and disposal.
The SHANTI Bill repeals existing legislation on nuclear activity and opens up private participation in civil nuclear sector

Why the Govt Supports the Bill

  • Attract foreign investment & technology into the nuclear sector.
  • Accelerate clean energy transition and meet net-zero commitments.
  • Expand nuclear capacity to reduce reliance on coal.
  • Promote innovation and competition in nuclear power generation.
SHANTI Bill: Comparison with Existing Laws
AspectAtomic Energy Act, 1962 & CLNDA, 2010SHANTI Bill 2025
Sector Control  Complete government monopoly over nuclear energy.Government control retained, but limited private participation allowed
Private ParticipationNo role for private companiesPrivate firms allowed up to 49% minority equity
Foreign InvolvementEffectively restricted due to legal and policy barriersForeign participation permitted through partnerships
Liability FrameworkStrict supplier liability under CLNDARisk-sharing & liability management mechanisms proposed
Technology FocusLarge, indigenous nuclear reactorsEmphasis on Small Modular Reactors (SMRs)
Investment EnvironmentClosed and risk-heavy for investorsMore investment-friendly and aligned with global practices.

The SHANTI Bill represents a bold attempt to harness the potential of nuclear energy through private sector participation. However, it also raises important questions about safety, liability, and transparency.

https://www.thehindu.com/news/national/lok-sabha-clears-shanti-bill-amid-questions-over-liability-clause/article70408337.ece

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