Supreme Court emphasizes balance between national interest and liability in SHANTI Act petition
The Supreme Court is hearing a petition challenging the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act of 2025. The petition argues that the Act allows private and foreign companies to operate nuclear plants while capping their liability at an 'absurdly low' level of ₹3,000 crore and exempting suppliers from accountability. Chief Justice Surya Kant noted that while nuclear power is essential for India's energy security, a balance must be struck between national interest and the potential for catastrophic loss, similar to the Chernobyl or Fukushima accidents.
Key Points
- The SHANTI Act 2025 facilitates private and foreign sector participation in India's nuclear energy production.
- Critics argue the ₹3,000 crore liability cap for operators is insufficient compared to the potential damage of nuclear accidents.
- The Act's exemption of suppliers from liability is challenged on the grounds that it may lead to compromised safety standards.
- The government's residual liability is capped at 300 million Special Drawing Rights (SDR) under the new legislation.
Exam Facts
- SHANTI Act: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025.
- Operator liability cap: ₹3,000 crore (approx. $331 million).
- Government residual liability: 300 million Special Drawing Rights (SDR).
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