Critical Analysis of the SHANTI Act and its Impact on India's Nuclear Liability Framework
The SHANTI Act, recently passed by Parliament, opens India's nuclear power sector to private entities while fundamentally altering the liability framework established by the CLNDA. The Act indemnifies suppliers and caps operator liability at ₹3,000 crore for large plants, a figure critics argue is insufficient compared to potential disaster costs. By channeling all liability to the operator and omitting Section 46 of the CLNDA, the Act limits victims' ability to seek legal remedies. Proponents argue it aligns India with international norms to attract investment, while critics warn of 'moral hazard' and reduced safety incentives.
Key Points
- The SHANTI Act ends the government's exclusive control over nuclear power plant operations.
- Operator liability is capped at ₹3,000 crore for large plants and ₹100 crore for small ones.
- Suppliers are indemnified against lawsuits for accidents caused by defective equipment.
- The Act establishes a legislative framework for the Atomic Energy Regulatory Board but limits its independence.
Exam Facts
- SHANTI Act amends the Civil Liability for Nuclear Damage Act (CLNDA).
- Liability cap for large plants: ₹3,000 crore.
- Nuclear energy currently accounts for about 3% of India's electricity generation.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.