Parliament Passes SHANTI Nuclear Energy Bill
Why focus: Iron Law 4 (Passed Act). Tests private sector entry in nuclear energy — GS3 Science/Energy, perfect for Assertion-Reason formats.
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: Only government companies (like NPCIL and BHAVINI) could own and operate nuclear power plants under Section 3 of the Atomic Energy Act, 1962. NOW: The SHANTI Bill permits private domestic and foreign entities to build, own, and operate nuclear facilities for peaceful purposes.
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BEFORE: Foreign Direct Investment (FDI) was strictly prohibited in the atomic energy sector. NOW: The Bill amends the FDI policy to allow up to 49 percent FDI in nuclear power generation and 100 percent in non-power applications (healthcare, agriculture) under the government approval route.
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BEFORE: Private sector participation was strictly limited to supplying components and undertaking civil construction. NOW: Private players can engage in technology transfer, form joint ventures for Small Modular Reactors (SMRs), and manage full plant operations.
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BEFORE: The operator (the government) bore absolute liability under the CLND Act, 2010, with supplier liability acting as a major deterrent for foreign and private vendors. NOW: The Bill introduces a 'Nuclear Insurance Pool Mechanism' backed by sovereign guarantees to cap private operator liability, easing supplier concerns without scrapping the CLND framework.
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BEFORE: Regulation of radiation technology in medicine and agriculture was heavily centralized and bureaucratic. NOW: A decentralized, fast-track licensing mechanism is established under the SHANTI framework to expedite approvals for using ionizing radiation in food irradiation and medical isotopes.
What Did NOT Change
The Atomic Energy Regulatory Board (AERB) remains the sole independent authority for safety and regulatory oversight. Furthermore, the handling of weapons-grade nuclear material, spent fuel reprocessing, and deep geological repositories for high-level radioactive waste remain under the absolute control of the Department of Atomic Energy.
Prelims Angle
NCERT Connection
Common Misconceptions
✗ The SHANTI Bill permits foreign direct investment in nuclear weapons technology.
✓ It strictly opens the sector for peaceful, non-military uses such as electricity generation, healthcare, and agricultural applications.
The broad term 'atomic energy sector' often causes people to conflate civilian power generation with strategic, classified military programs.
✗ Private companies can now freely mine and export Uranium and Thorium.
✓ Mining, processing, and export of prescribed radioactive substances (Uranium, Thorium) remain strictly controlled by the central government.
Opening power plant operations is mistakenly equated with opening the entire nuclear fuel cycle, including raw material extraction.
Practice Questions
Q1
How Many CorrectConsider the following statements regarding the SHANTI Nuclear Energy Bill, 2025: 1. It repeals the Civil Liability for Nuclear Damage Act, 2010 to remove supplier liability and attract foreign investment. 2. It allows 100 percent Foreign Direct Investment (FDI) in nuclear power generation under the automatic route. 3. The handling and reprocessing of spent nuclear fuel remains an exclusive domain of the Central Government. How many of the above statements are correct?
Q2
Match the FollowingMatch List I (Nuclear Institutions/Legislations) with List II (Primary Mandate/Feature): List I: A. Atomic Energy Act, 1962 B. AERB C. CLND Act, 2010 D. SHANTI Bill, 2025 List II: 1. Addresses compensation and liability for nuclear incidents 2. Enables private ownership of civilian nuclear power plants 3. Established initial state monopoly over nuclear research and power 4. Enforces safety and regulatory oversight in nuclear facilities
Q3
Assertion & ReasonAssertion (A): Under the SHANTI Bill, 2025, private entities are allowed to operate nuclear power plants but are restricted from managing deep geological repositories for high-level radioactive waste. Reason (R): High-level radioactive waste contains weapons-grade fissile material and poses severe proliferation and long-term environmental risks, necessitating sovereign control.