Under the proposed SHANTI Act, the Indian government will establish an expert group to review nuclear operator liability caps every five years. The new draft rules introduce a graded liability structure based on reactor capacity.
- Nuclear liability caps for operators will be reviewed every five years by a specialized expert group under the SHANTI Act.
- The draft rules introduce a graded liability framework based on the Megawatt-electric (MWe) capacity of the reactor.
- The new rules dilute the 'right of recourse' against suppliers for defective equipment to encourage foreign investment.
New Delhi: In a significant move to reshape the landscape of India's nuclear energy sector, the Department of Atomic Energy has released draft rules for the SHANTI Act. A key provision in these rules mandates a periodic review of the maximum civil liability limits for nuclear operators, to be conducted every five years by an expert committee.
According to Rule 78 of the draft rules released on August 14, the Centre will constitute a multidisciplinary expert group. This group will comprise specialists in nuclear science, engineering, actuarial science, insurance, and law, alongside public-interest representatives. Their mandate is to review the "maximum limits of operator’s civil liability for nuclear damage" and propose amendments to the Act's second schedule.
A Graded Approach to Liability
Moving away from the flat liability cap of ₹1,500 crore established under the previous Civil Liability for Nuclear Damage Act, 2010 (CLNDA), the SHANTI Act introduces a scalable model. This graded framework ensures that the financial responsibility is proportional to the scale of the nuclear installation.
| Reactor Capacity (MWe) | Maximum Liability Cap (in ₹ Crore) |
|---|---|
| Above 3,600 MWe | 3,000 |
| 1,500 - 3,600 MWe | 1,500 |
| 750 - 1,500 MWe | 750 |
| 150 - 750 MWe | 300 |
| Up to 150 MWe | 100 |
BozokMedia analysis shows that this transition toward graded caps is a strategic attempt to harmonize safety requirements with the economic realities of large-scale nuclear projects, potentially making them more viable for private players.
Why This Matters: Legal and Global Implications
The implementation of the SHANTI Act is not without controversy. The issue has reached the Supreme Court of India, following petitions challenging the Act's ability to allow private and foreign entities to operate nuclear plants while capping liability at levels deemed "absurdly low." The top court has sought clarification from the Centre on whether the Act would prevent constitutional courts from ensuring "fair and just" compensation in the event of a mishap.
The tension between attracting global nuclear technology and ensuring absolute public accountability remains the central challenge of India's energy transition.
Furthermore, the draft rules significantly alter the "right of recourse." Under the previous CLNDA, operators could seek compensation from suppliers if an accident was caused by defective equipment. The SHANTI Act omits this specific provision, a move heavily lobbied for by foreign vendors who viewed long-term supplier liability as a major deterrent to investing in India.
Historical Background
India's nuclear liability regime has undergone a massive evolution. From a highly centralized, state-run model, the country is now pivoting toward a more liberalized framework. The shift from the 2010 CLNDA to the SHANTI Act represents a fundamental change in how the state manages the risks associated with nuclear energy and private sector participation.
Frequently Asked Questions
1. How often will the nuclear liability limits be reviewed?
The draft rules specify that an expert group will review the limits every five years.
2. How does the new liability cap differ from the old one?
Unlike the previous flat ₹1,500 crore cap, the new rules apply different limits based on the reactor's power output (MWe).
