India is poised to redefine its nuclear energy landscape with the passage of the Shanti Bill, marking the most significant overhaul of its nuclear framework in decades. The Economic Times' "Morning Brief" podcast recently delved into the intricacies of this new legislation, exploring its potential to reshape the future of civilian nuclear power in the country.
The discussion, led by host Anirban Chowdhury, featured insights from ET's executive editor, Pranab Dhal Samanta, and Anubhuti Vishnoi, dissecting the key changes introduced by the Shanti Bill and their potential impact. The podcast traced India's nuclear journey, from its initial stance outside the Non-Proliferation Treaty to the achievement of global recognition following the Indo-US nuclear deal. Despite gaining access to international fuel and technology, the expansion of nuclear energy in India has been sluggish, hampered by stringent liability norms and a heavily regulated, state-controlled model.
The Shanti Bill seeks to address these limitations by consolidating existing laws into a unified framework. A key feature of the bill is the removal of supplier liability, a move designed to encourage greater participation from international players. The legislation also aligns compensation rules with global conventions and introduces a system of graded liability caps.
Crucially, the Shanti Bill opens the door for private sector involvement in the nuclear energy sector, a move considered essential for India to meet its ambitious energy goals. The bill also separates the regulatory and operational functions within the nuclear sector and clarifies responsibilities across the nuclear fuel cycle, while maintaining strategic control with the state. Experts estimate that India will need at least 30,000 billion units of energy annually to achieve its economic targets over the next 25 years. With renewable energy sources having a maximum potential of 4,000-8,000 billion units annually, nuclear power is seen as crucial to bridging the gap and meeting India's net-zero commitments. The current legal and business framework, which mainly restricts operations to central government nuclear utilities or public sector undertakings, makes a nuclear energy transition impossible.
The Adani Group has already signaled its interest in entering the nuclear power sector, contingent on the government finalizing a credible public-private partnership model and resolving liability rules. The potential entry of large private players like Adani could inject significant capital and expertise into the sector, accelerating its growth.
The "Morning Brief" podcast highlights that the Shanti Bill represents a calculated effort to create a more attractive and efficient environment for nuclear energy development in India. By addressing key concerns such as supplier liability and regulatory clarity, the government hopes to unlock the full potential of nuclear power and ensure its greater role in India's future energy mix. Arun Kumar Nayak, until recently head of the Nuclear Control and Planning Wing of the Department of Atomic Energy, has argued that private sector entry into nuclear power is not a matter of choice but an imperative for India.
