SC questions SHANTI Act's liability caps for nuclear disaster compensation

The Supreme Court questioned whether the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act of 2025 could prevent constitutional courts from granting suitable compensation to nuclear disaster victims. A petition challenged the Act's provisions limiting liability for operators, suppliers, and manufacturers, and capping the government's residual liability at SDR 300 million and operator liability at ₹3,000 crore. Petitioners argued these caps are abysmally low, undermining victim compensation and incentivizing profit over safety, citing high costs of past global nuclear disasters like Chernobyl and Fukushima.

Key Points

  • The Supreme Court is examining if the SHANTI Act, 2025, can bar courts from granting suitable compensation in nuclear accidents.
  • The Act caps operator liability at ₹3,000 crore and government's residual liability at SDR 300 million.
  • Petitioners argue these caps are too low and could undermine victim compensation and safety.
  • The case highlights the need for adequate victim compensation mechanisms and a balance between promoting nuclear energy and safety accountability.
  • India currently follows the Civil Liability for Nuclear Damage Act, 2010.

Exam Facts

  • SHANTI Act, 2025: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act.
  • Operator liability capped at ₹3,000 crore.
  • Government's residual liability capped at SDR 300 million.
  • India follows Civil Liability for Nuclear Damage Act, 2010.

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All current affairs of 18 August 2026