Lok Sabha clears SHANTI Bill amid questions over liability clause

On December 17, 2025, the Lok Sabha approved the landmark Lasting Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, despite calls from multiple opposition members to refer the legislation to a parliamentary commitee for further scrutiny. This pivotal bill now advances to the rajya Sabha for debate before it can be enacted into law. The legislation aims to revolutionize IndiaS nuclear energy landscape by encouraging private sector involvement and modernizing regulatory frameworks, aligning with the country’s aspiring clean energy goals.

Revolutionizing India’s Nuclear Sector: The SHANTI Bill’s Core Provisions

The SHANTI Bill introduces important reforms, most notably the removal of a contentious clause from the Civil Liability for Nuclear Damage Act, 2010. This clause previously allowed nuclear plant operators to seek compensation from equipment suppliers in the event of an accident, a provision that had deterred foreign investment due to fears of unlimited liability. The bill’s proponents argue that advancements in technology, such as the growth of small modular reactors (SMRs), have altered the risk landscape, making the old liability framework obsolete.The government envisions these SMRs powering densely populated areas with enhanced safety and efficiency.

debate and Controversy: Opposition Concerns and Government Responses

Opposition voices, including Congress MP Manish Tewari, raised concerns about the timing of the bill, highlighting the recent interest of the Adani Group in entering the nuclear sector. Tewari questioned the removal of supplier liability, emphasizing the potential risks if an accident were to occur. Similarly, Supriya Sule of the Nationalist Congress party challenged the government’s decision to cap operator liability at ₹3,000 crore, questioning the rationale behind this figure.Congress MP Shashi Tharoor underscored the inadequacy of this cap by comparing it to the exorbitant cleanup costs of nuclear disasters like Fukushima and Chernobyl, which ran into hundreds of billions of dollars.

In response, Science minister Jitendra Singh defended the bill by explaining that the ₹3,000 crore cap applies only to the plant operator’s liability.Additional compensation could be sourced from a nuclear insurance pool and a newly proposed Nuclear Liability Fund, financed through tariffs. He also highlighted India’s accession to the Convention on Supplementary Compensation for Nuclear Damage (CSC), which provides a framework for compensation beyond national limits. Singh emphasized that the bill retains many existing safeguards while adapting to contemporary technological and economic realities.

Strategic Importance: Aligning nuclear Policy with India’s Energy and Climate Goals

The government’s push to privatize and expand the nuclear power sector is part of a broader strategy to enhance clean energy production and stabilize the national grid. Currently, nuclear energy accounts for approximately 1.5% of India’s installed power capacity and contributes about 3% of the country’s electricity generation. The SHANTI Bill supports the ambitious target of scaling nuclear capacity to 100 GW by 2047,a significant leap from the present 8.8 GW.this expansion is critical to meeting India’s net-zero carbon emissions goal by 2070.

to facilitate this growth, the government has allocated ₹20,000 crore in the recent budget for the development of small modular reactors and customized 220 MW Pressurized Heavy Water Reactors, branded as Bharat Small Modular Reactors.These initiatives are expected to attract private investment, foster innovation, and enhance energy security.

Political and Economic Context: navigating Global Pressures and Domestic Challenges

Opposition parties have criticized the bill as a concession to foreign companies, notably American firms, amid rising global trade tensions and the impact of Trump-era tariffs. Samajwadi Party’s Aditya Yadav argued that the government’s eagerness to attract foreign capital, especially with the rupee weakening past ₹90 to the dollar, risks compromising public interest by diluting existing nuclear liability protections. The debate reflects broader concerns about balancing economic pragmatism with safety and sovereignty in a strategically sensitive sector.

Significant Facts: Key Points to Remember

• The SHANTI Bill,2025 was passed by the Lok sabha on December 17,2025,and is pending in the Rajya Sabha.
• The bill removes the supplier liability clause from the Civil Liability for Nuclear Damage Act, 2010.
• Current nuclear power capacity in India is approximately 8.8 GW, contributing about 3% of electricity generation.
• India aims to increase nuclear capacity to 100 GW by 2047 to support its net-zero emissions target by 2070.
• The operator’s liability cap is set at ₹3,000 crore (~$400 million), supplemented by a Nuclear Liability Fund and insurance pools.
• India is a signatory to the Convention on Supplementary Compensation for Nuclear Damage (CSC), enabling compensation beyond national limits.
• The government has allocated ₹20,000 crore for developing small modular reactors and Bharat Small Modular Reactors.
• Opposition parties have raised concerns about the bill favoring private and foreign companies, especially the Adani Group.
• Past nuclear disasters like Fukushima and Chernobyl incurred cleanup costs exceeding $182 billion and $700 billion respectively.
• The bill reflects a shift towards modern nuclear technologies and private sector participation to meet India’s energy demands.

Frequently Asked Questions

Q: what is the main objective of the SHANTI Bill, 2025? the bill aims to modernize India’s nuclear energy sector by encouraging private investment, removing supplier liability clauses, and promoting advanced technologies like small modular reactors.

Q: Why was the supplier liability clause controversial? The clause allowed nuclear plant operators to seek compensation from equipment suppliers in case of accidents, which deterred foreign companies due to fears of unlimited liability.

Q: How does the bill address liability in case of nuclear accidents? The operator’s liability is capped at ₹3,000 crore, with additional compensation available through a nuclear insurance pool and the Nuclear Liability Fund, supported by tariffs.

Q: What role do small modular reactors play in India’s nuclear strategy? Small modular reactors offer safer, scalable, and more flexible nuclear power solutions, especially suited for densely populated areas, and are central to India’s plan to expand nuclear capacity.

Q: how does the SHANTI Bill align with India’s climate goals? By expanding nuclear power capacity to 100 GW by 2047, the bill supports India’s commitment to achieving net-zero carbon emissions by 2070 through increased clean energy production.