Reviewing the Implications of the SHANTI Act, 2025 on Nuclear Liability and Victim Compensation
Key Points
The Supreme Court's review of the SHANTI Act, 2025, highlights critical concerns about nuclear disaster compensation and liability caps. This scrutiny is crucial for UPSC aspirants, particularly for General Studies Paper 2, as it involves governance, policy interventions, and constitutional rights. Last Updated: 19-08-2026
Key Facts About the SHANTI Act, 2025
- The SHANTI Act, 2025 replaced the Civil Liability for Nuclear Damage (CLND) Act, 2010.
- It aims to facilitate private-sector participation by easing stringent liability norms.
- Establishes a predictable civil liability framework for nuclear incidents.
- Operator liability is tiered based on thermal capacity, ranging from Rs 100 crores to Rs 3,000 crores.
- The Central Government covers compensation exceeding operator limits, capped at 300 million SDR.
- Limits supplier liability unless specified in contracts or in cases of intentional incidents.
- Introduces statutory time bars for claims: 10 years for property damage, 20 years for personal injury.
- Grants statutory status to the Atomic Energy Regulatory Board (AERB).
India's Nuclear Liability Framework
The SHANTI Act is pivotal in expanding India's nuclear sector while balancing safety and accountability. It aligns with India's strategic goals of energy security and economic growth. However, the Act's liability caps and time limits raise concerns about safety incentives and victim compensation. Globally, India's framework is unique, as it is not a party to the Paris or Vienna Conventions but ratified the Convention on Supplementary Compensation (CSC) in 2016.
UPSC Relevance
- GS Paper 2: Governance, Constitution, Polity - Policy interventions, regulatory frameworks.
- GS Paper 3: Economic Development - Infrastructure, energy security.
- Prelims: Questions on the SHANTI Act, liability caps, and CSC.
- Mains: Analytical themes on balancing energy needs with safety and constitutional rights.
- Essay Paper: Topics on nuclear energy, policy, and governance.
FAQ Section
- What is the SHANTI Act, 2025? The SHANTI Act replaced the CLND Act, 2010, facilitating private and foreign participation in India's nuclear sector through a more predictable liability framework.
- Why is the SHANTI Act important? It aims to expand India's nuclear energy capabilities while addressing liability and compensation issues, crucial for energy security and economic growth.
- What are the key features of the SHANTI Act? Key features include tiered operator liability, government coverage of excess compensation, and limited supplier liability, with statutory time bars for claims.
Detailed Coverage
- SHANTI Act, 2025 expands India's nuclear sector with private and foreign participation.
- Replaces the Civil Liability for Nuclear Damage (CLND) Act, 2010.
- Facilitates private-sector involvement by easing liability norms.
- Establishes a predictable civil liability framework.
- Defines "company" under Section 2(20) of the Companies Act, 2013.
- Grants AERB statutory status for enhanced regulatory authority.
- Reserves sensitive activities for the Central Government.
- Creates an Atomic Energy Redressal Advisory Council.
- Introduces tiered financial liability based on reactor thermal capacity.
- Central Government covers claims exceeding operators' statutory limits.
- Shields suppliers from direct liability unless stated in contracts.
- Excludes ordinary civil courts from claims adjudication.
- Claims must be filed within 10-20 years depending on damage type.
- Allows classification of nuclear operational information as restricted.
- India ratified the Convention on Supplementary Compensation (CSC) in 2016.
- Concerns include inadequate liability ceilings and restrictive time limits.
- Measures needed include an independent nuclear safety regulator and strengthened insurance pools.