Why In News?

The Department of Atomic Energy (DAE) released the draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Rules, 2026 to operationalize private sector participation for civil nuclear energy.

Highlights of the Draft SHANTI Rules, 2026

Single-Window Composite Licensing

Replaces fragmented multi-stage approvals with an integrated Composite License covering site clearance, construction, commissioning, and commercial operation administered by the statutory Atomic Energy Regulatory Board (AERB).

 

Opening Generation to Private Capital

Permits Indian private companies (incorporated under the Companies Act, 2013) to build, own, and operate nuclear power plants, captive industrial reactors, and Small Modular Reactors (SMRs).



Modern "Insurance-Plus-Fund" Model

Mandates all nuclear operators to maintain strict financial security through insurance covers backed by the India Nuclear Insurance Pool (INIP).

 

Foreign Reactor Technology Certification

Mandates that foreign reactor technologies must possess design safety certification from the regulatory authority in their country of origin and must be actively operational globally prior to Indian deployment.

 

Mandatory Decommissioning & Waste Management Escrow

Requires operators to set aside dedicated funds throughout the plant's operational lifecycle into an escrow account for safe decommissioning and radioactive waste disposal.

 

Alignment with International Atomic Energy Agency (IAEA) Protocols and the Convention on Supplementary Compensation (CSC)

  • The rules align Indian domestic law with international nuclear jurisprudence by channeling liability strictly and exclusively to the plant operator, harmonizing with Article 3 of the IAEA Convention on Supplementary Compensation for Nuclear Damage (CSC).

  • Ensures complete conformity with CSC standards, enabling India to access international supplementary insurance funds during catastrophic transboundary nuclear events.

 

Evolution of Nuclear Energy Regulation: Moving from State Monopoly to Private Capital

Phase 1: Strict State Monopoly (1962–2015): Under the Atomic Energy Act of 1962, only the Union Government through public sector utilities like Nuclear Power Corporation of India Limited (NPCIL) and BHAVINI held exclusive authority to own and operate nuclear reactors.



Phase 2: Public Sector Joint Ventures (2015–2024): The 2015 Atomic Energy Amendment allowed NPCIL to form joint ventures with other state-owned enterprises, giving rise to entities like ASHVINI (NPCIL-NTPC Joint Venture).

 

Phase 3: Comprehensive Private Sector Market Liberalization (SHANTI Framework 2025–2026): Deregulates nuclear generation, allowing private corporations (such as Tata Power, Reliance, L&T, and Adani) to build Bharat Small Reactors (BSRs), captive micro-reactors for heavy industry, and commercial nuclear parks under AERB safety regulations.

 

Role of Private Sector In Achieving 500 GW Non-Fossil Capacity by 2030 and 100 GWe by 2047

Reliable Clean Base-Load Power: Unlike solar and wind energy which are intermittent, nuclear power delivers continuous, 24x7 clean base-load power with a capacity factor exceeding 85%, ensuring grid stability as India scales towards 500 GW of non-fossil capacity by 2030.

 

Mobilizing Private Capital for 100 GWe by 2047: Expanding nuclear capacity from ~8.1 GW currently to 100 GW by 2047 requires over ₹15 to 20 lakh crore ($180–240 billion) in investments, which public exchequer borrowing alone cannot sustain.

 

Decarbonizing Heavy Industries: Private sectors can deploy factory-fabricated 220 MW Bharat Small Reactors (BSRs) and Small Modular Reactors (SMRs) at retired coal plant sites for captive clean electricity and high-temperature industrial process heat.

 

 

Source: ANINEWS

 

 

 

PRACTICE QUESTION

Q. Examine the role of nuclear energy in meeting India's twin targets of achieving 500 GW of non-fossil capacity by 2030 and Net Zero emissions by 2070. 150 words