SUSTAINABLE HARNESSING AND ADVANCEMENT OF NUCLEAR ENERGY FOR TRANSFORMING INDIA (SHANTI) ACT
- The SHANTI framework seeks to open India’s nuclear energy sector to private participation and may also facilitate the inflow of foreign investment.
- At present, the construction and operation of nuclear power plants are restricted exclusively to public sector entities.
- India aims to scale up its nuclear capacity from the existing 8.8 GW—roughly 1.5% of total installed power capacity—to 100 GW by 2047, thereby raising nuclear energy’s share in electricity generation from around 3%.
- Public sector nuclear utilities estimate that they will contribute nearly 54 GW of this expansion, with the remaining capacity expected to come from private players
- Because of nuclear energy’s association with atomic weapons, the movement and use of nuclear fuel such as uranium are subjected to rigorous oversight to prevent its diversion for the production of weapons-grade plutonium.
- Past disasters—including the 1979 Three Mile Island accident, the 1986 Chernobyl catastrophe, and the Fukushima core meltdown triggered by the 2011 tsunami—have reinforced a global culture of caution, leading to stringent controls over every stage of nuclear plant functioning.
- Internationally, there is now broad agreement that in the event of a nuclear accident, the operator of the facility bears the primary responsibility for compensating affected individuals in proportion to the harm caused.
- Such compensation must be provided promptly, without waiting for investigations into causation or fault.
- Subsequently, however, the operator may seek reimbursement if it can demonstrate that the accident resulted not from managerial failure but from defective equipment supplied by another party
- Under the earlier Civil Nuclear Liability framework, operators were permitted to pursue recourse against equipment providers in three situations: first, where an explicit contractual provision existed; second, where the incident was attributable to defects in the supplier’s equipment; and third, where the damage was caused by a deliberate act intended to inflict nuclear harm.
- The SHANTI legislation removes the second ground for recourse. Even after the 2008 Indo-US civil nuclear agreement, which reopened India’s access to uranium supplies and advanced nuclear technology following restrictions imposed after the 1974 and 1998 nuclear tests, reactor manufacturers from the United States and France remained reluctant to enter the Indian market due to the potential exposure to massive liability claims.
- By eliminating this clause—and even removing explicit references to “suppliers”—the proposed framework effectively addresses these concerns
- Homi Bhabha, regarded as the architect of India’s nuclear energy programme, envisaged nuclear power as a cornerstone of the country’s energy security while also overcoming India’s limited uranium reserves through the eventual use of thorium.
- His three-stage plan begins with the construction of pressurised heavy water reactors that utilise natural uranium (U-238) to generate electricity and produce plutonium as a by-product.
- The second stage involves fast breeder reactors, which are designed to generate additional plutonium and uranium-233 while producing power. In the third and final stage, uranium-233 is combined with India’s abundant thorium resources to generate electricity, creating a largely self-reliant thorium-based nuclear system.
- India has yet to transition fully into the second stage, having only a prototype fast breeder reactor so far. This project, delayed by nearly two decades, was earlier scheduled to become operational in 2025 but has now been postponed further, with commissioning expected in September 2026.
- To meet its near-term nuclear energy targets, India is increasingly exploring Small Modular Reactors (SMRs).
- These are scaled-down versions of conventional reactors currently deployed in countries such as the United States and France, and they require enriched uranium-235—a resource that India does not possess in sufficient quantities. Like India’s first-stage reactors, SMRs generate various radioactive by-products, including plutonium and strontium.
- SMRs are expected to be manufactured in modular components across multiple locations and assembled at a central site, much like the global production processes used for aircraft or smartphones.
- However, due to their smaller size, they produce less electricity per unit compared to large reactors. They also do not offer a fundamentally superior solution to nuclear waste management, although some designs incorporate enhanced safety features that allow automatic shutdown during emergencies.
- While SMRs may contribute to electricity generation, they do little to advance India’s long-term objective of transitioning to thorium-based nuclear power
Under the previous legal framework, victims of a nuclear incident could seek compensation from the plant operator up to a ceiling of ₹1,500 crore. Any damage beyond this limit was to be covered by the Union government through an insurance mechanism, capped at ₹4,000 crore. The SHANTI legislation introduces a tiered liability structure instead. Operators of facilities with a capacity exceeding 3,600 MW would face a maximum liability of ₹3,000 crore. For plants in the 1,500–3,600 MW range, the liability limit is set at ₹1,500 crore; for capacities between 750 MW and 1,500 MW, it is ₹750 crore; for 150–750 MW plants, the cap is ₹300 crore; and facilities below 150 MW carry a liability limit of ₹100 crore. At present, all nuclear power plants in India have capacities of 3,000 MW or less.
Science Minister Jitendra Singh, who introduced the Bill in Parliament, explained that this differentiated structure was designed to avoid deterring private sector investment. However, during parliamentary discussions, concerns were raised that the actual costs of compensation in major nuclear accidents have historically run into several billions of dollars, far exceeding the proposed liability ceilings
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Previous Year Questions 1. To meet its rapidly growing energy demand, some opine that India should pursue research and development on thorium as the future fuel of nuclear energy. In this on text, what advantage, does thorium hold over uranium? (UPSC 2012)
Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 2. Which among the following has the world’s largest reserves of Uranium? (UPSC 2009) (a) Australia Answers: 1-D, 2-A |
Source: The Hindu
