The passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 in the Lok Sabha marks a fundamental reset of India’s nuclear doctrine. By repealing the outdated Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010, the government has cleared a path for a 100 GW nuclear future.

Predictably, it has also sparked a wave of alarmist headlines. Outlets like The Wire have characterized the legislation as a “free pass for accidents” and a “conspiracy to protect big business,” echoing sentiments voiced by opposition parliamentarians.

However, a dispassionate analysis of the legislative text reveals that these narratives rely on selective omission. When we move past the emotive framing, we see a bill that replaces a failed 15-year-old experiment with a pragmatic, high-accountability framework designed to meet India’s 100 GW nuclear target by 2047.

Here is the truth behind the “Selective Outrage” and why the SHANTI Bill is a much needed reform in balancing innovation with national security.

1. The “Crony Capitalism” Myth vs. The Math

The primary accusation against the SHANTI Bill is that it dilutes liability to favor private operators.

If the government’s intent were truly to “benefit friends,” the financial burden on companies would have decreased. The actual math tells the opposite story.

  • The 2010 Act: Fixed operator liability at a flat ₹1,500 crore.
  • The SHANTI Bill 2025: Introduces a graded structure that doubles the liability for large-scale reactors (above 3,600 MW thermal) to ₹3,000 crore.

By doubling the financial stakes, the government is ensuring the “Polluter Pays” principle is stronger than ever. The SHANTI Bill 2025 replaces the outdated one-size-fits-all model with a graded liability structure that mirrors the actual risk profile of modern technology. Liability is now scientifically tiered, ranging from ₹100 crore for factory-built Small Modular Reactors (SMRs) to ₹3,000 crore for large-scale plants.

This maximum cap of ₹3,000 crore (equivalent to approximately 300 million Special Drawing Rights) explicitly aligns India with the Convention on Supplementary Compensation (CSC). This alignment ensures that while the operator bears primary responsibility, victims are protected by a multi-layered safety net:

  • Layer 1: Mandatory Operator Insurance (or financial security) covering the capped amount.
  • Layer 2: The Nuclear Liability Fund, a dedicated pool established by the Bill and financed by a small levy on nuclear power generation. This ensures the industry—not just the taxpayer—builds the safety net over time.
  • Layer 3: Sovereign and International Backstops, where the Central Government and international funds cover claims exceeding the operator’s cap, ensuring that the total compensation pool remains robust and reliable.

2. The Compensation Myth: “Victims Will Be Left Stranded”

Critics claim removing the “Right of Recourse” against suppliers is a gift to equipment manufacturers. In reality, it is a safety net for the victim.

The 2010 Act contained a “supplier liability” clause that was unique in the world—and not in a good way. It created a legal quagmire where, in the event of an accident, an operator would spend years suing a supplier to avoid paying victims. The victims, meanwhile, would be caught in the crossfire of corporate litigation.

The SHANTI Bill adopts Legal Channelling, the global gold standard:

  • Single Window for Justice: The operator is exclusively and absolutely liable. Victims only need to prove damage to receive compensation; they do not need to prove whose fault it was.
  • Immediate Payouts: By eliminating the need to prove a “supplier defect” in court, the payout timeline for victims is cut from decades to months.
  • Contractual Accountability: The “Right of Recourse” hasn’t vanished—it has moved from statute to contract. Operators are free to sign rigorous indemnity clauses with suppliers privately.

This change aligns India with the Convention on Supplementary Compensation (CSC), finally allowing global technology leaders to partner with India while ensuring victims get paid first, fast, and fully.

3. The “Lapdog” Regulator Myth: “Modi Can Help His Friends in Secret”

For 40 years, the Atomic Energy Regulatory Board (AERB) functioned under an executive order. It reported to the Department of Atomic Energy (DAE), which in turn reported to the Prime Minister. Some rightly pointed out that the promoter and the regulator were essentially the same entity.

The SHANTI Bill 2025 fundamentally breaks this cycle by granting the AERB Statutory Status.

  • Independence: Its powers are now anchored in law, not executive whim. It has the statutory authority to inspect, investigate, and even shut down private or public plants without seeking “permission” from the Ministry.
  • Parliamentary/Public Scrutiny: Most importantly, the AERB is now mandated to table its reports directly in Parliament.

This is the ultimate check against “cronyism.” Every safety audit, inspection failure, or licensing decision will now be a public document subject to the scrutiny of the entire Parliament—Opposition included. You cannot “benefit friends” in secret when the safety reports are on the table of the House.

4. The Guarded Gate: What Private Players CANNOT Do

To call this “unfettered privatization” is a fabrication. The SHANTI Bill draws a strict “Strategic Perimeter” around the sector:

  • The Fuel Cycle: Enrichment of U-235 beyond a civilian threshold and the reprocessing of spent fuel (where plutonium is extracted) remain a 100% State Monopoly.
  • Strategic Assets: Production of heavy water and high-level waste management are exclusively reserved for the Central Government.
  • Ownership Limits: While Indian private companies can now lead projects, foreign firms are capped at 49% minority equity, ensuring that the steering wheel remains in Indian hands.
  • Security: Physical security and cybersecurity of all installations remain under the command of state agencies like the CISF and the DAE’s specialized cells.

5. The 2025 Reality: The Rise of BSRs and SMRs

Critics are judging 2025 energy needs through a 2010 lens. Back then, “nuclear” meant massive, multi-billion-dollar parks. Today, the world is moving toward Small Modular Reactors (SMRs) and Bharat Small Reactors (BSRs).

These units are factory-built, inherently safer, and designed for decentralized use in industrial hubs or to replace ageing coal plants. The 2010 law was a regulatory “overkill” that made these small, safe reactors financially unviable. The SHANTI Bill provides the flexible legal framework needed to deploy these “green batteries” at scale, supporting India’s mission to achieve Net Zero by 2070.

6. The Beneficiaries: Who Actually Wins?

While critics name specific conglomerates just to score some brownie points for electoral or television rating benefits, the real beneficiaries are broader:

  • The Indian Consumer: Nuclear provides 24/7 “baseload” power. Unlike solar or wind, it doesn’t stop when the sun goes down, making it the only way to power India’s massive AI data centers and EV grids cleanly.
  • Indian Engineering Giants: Companies like L&T, Tata Power, Reliance, and Adani can now enter the sector as licensed operators, but they must operate under the strictest safety regime in Indian history.
  • India’s Scientists: By granting the AERB statutory status, India finally grants its nuclear scientists the legal independence to say “No” to any project on safety grounds, without fear of administrative interference. This is a massive win for the professional integrity of the Department of Atomic Energy.
  • India: By aligning with the Convention on Supplementary Compensation (CSC), India can finally import the best safety technology from France, the US, and beyond—technology that was previously blocked by the unworkable 2010 law.

Conclusion: A Modern Law for a Modern India

The 2010 Act was a “dead letter”—in 15 years, it failed to add a single megawatt of foreign-assisted power. The SHANTI Bill 2025 is a pragmatic course correction that replaces political grandstanding with a framework that is technologically modern, financially realistic, and legally transparent.

By granting statutory status to the Atomic Energy Regulatory Board (AERB) and establishing a dedicated Atomic Disputes Tribunal, the Bill replaces the “internal memo” style of governance with a public, rule-based system. For the first time, safety audits and licensing criteria are no longer handled behind the closed doors of the Department of Atomic Energy; they must be tabled in Parliament. This ensures that private players are not subjected to arbitrary regulatory hurdles that favor state-run incumbents, providing the regulatory certainty and predictable risk-pricing necessary to raise capital and secure insurance.

Ultimately, by doubling operator liability for large reactors, empowering a statutory regulator, and making nuclear safety a matter of public record, the government has prioritized Energy Security over corporate favors. The SHANTI Bill is not just a legislative update; it is the engine of India’s clean energy revolution, designed to power a Net Zero 2070 and a 100 GW nuclear future.

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