According to the draft rules, the Centre has to, once every five years, constitute a group of experts to review the maximum limits of an operator’s civil liability for nuclear damage.
New Delhi: Nuclear plant operators need to maintain an insurance policy, financial security or a combination of both for nuclear damage, according to the draft rules of the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025.
Released by the Department of Atomic Energy on Friday, the draft rules also state that the financial security has to remain in place till the removal of all spent fuel from the storage pool concerned.
The government has released the draft SHANTI Rules, 2026, proposing a clear framework for operator liability, insurance and financial security for nuclear installations as it moves to expand nuclear power generation and widen private participation in the sector.
According to the draft rules, the Centre has to, once every five years, constitute a group of experts to review the maximum limits of an operator’s civil liability for nuclear damage.
Nuclear power developers would be required to maintain financial security for nuclear liability, decommissioning and waste-management obligations, and submit plans for management of radioactive waste.
Under the draft rules, operators of nuclear installations would be strictly liable for nuclear damage on a no-fault basis.
The rules state, “The liability of the operator of a nuclear installation for any nuclear damage, including that during the course of carriage of nuclear material, shall be strict and shall be based on the principle of no-fault liability.”
The rules also provide safeguards when shares, bonds or other financial instruments are used as security. These instruments would be pledged to the Central Government, while a security margin of 1:1.33 would have to be maintained. Operators would also be required to immediately cover any shortfall through additional insurance or financial security.
The proposed liability framework comes alongside provisions for a wider range of nuclear applications. These include electricity generation, captive power, process heat, hydrogen production, medical isotope production, education, training and research.
For nuclear facilities requiring a licence, the rules would require financial arrangements for civil liability, operating costs, spent fuel and radioactive waste management, as well as decommissioning and site remediation.
The draft provides a separate framework for nuclear installations owned by the Central Government. In specified cases, such operators would not have to obtain insurance or other financial security, with the Central Government assuming liability for damages attributable to the operator.
The draft also proposes nuclear captive power for hard-to-abate sectors and applications such as data centres, quantum technologies, high-performance computing, semiconductor manufacturing and AI-enabled technologies.
The world’s third-largest greenhouse-gas emitter aims to expand nuclear generation capacity 12-fold to 100 gigawatts (GW) over the next two decades, making private investment and foreign technology critical to meeting those ambitions.
It was ealier reported earlier that India invited domestic private conglomerates including Adani Green, Tata Power and Reliance Industries to invest in nuclear power.
Changes to the nuclear energy act included capping liability of nuclear equipment suppliers in accidents, a longstanding concern.
The move was aimed at reviving interest from foreign vendors such as General Electric, Westinghouse Electric and EDF.
Earlier Minister of State in the Prime Minister’s Office Jitendra Singh on civil liability for nuclear damage had said the SHANTI Act provides that the maximum operator liability for each nuclear incident will vary depending on the category of the nuclear installation, ranging from Rs 100 crore to Rs 3,000 crore.
On civil liability for nuclear damage, the minister said the SHANTI Act provides that the maximum operator liability for each nuclear incident will vary depending on the category of the nuclear installation, ranging from Rs 100 crore to Rs 3,000 crore.
He added that the Central Government will be liable for nuclear damage where the operator’s liability exceeds the prescribed limit, where the incident occurs in a government-owned nuclear installation, or where the damage is caused by exceptional natural disasters, armed conflict, hostility, civil war, insurrection or terrorism.
The government may also establish a Nuclear Liability Fund, financed through a levy charged on electricity tariffs, to meet its liability under the Act, the minister said.
On transparency provisions, Singh said the SHANTI Act exempts disclosure of information classified as “restricted information” where such disclosure would be detrimental to national security and public interest.
Another key provision is that if a nuclear power plant or reactor is of a foreign design, its design should be certified or approved in the country of origin by its regulatory body.
Country of origin here means those countries that are self-reliant in nuclear reactor design and supply-chain ecosystem, whose regulatory approvals are trusted globally, according to the draft rules.
The draft rules say such a nuclear power plant or reactor should also be operational either in the country of origin or any other foreign country.
Moreover, the draft rules highlight that the licensing authority may grant “in-principle approval” after admitting an application, where the site or technology has not been selected.
“Upon receipt of a valid ‘in-principle approval’, the applicant may proceed with negotiation with reactor technology vendors and for acquiring the land and other necessary infrastructure,” the draft rules say.
They also mention that there will be a single composite licence authorising the building, owning, operating and decommissioning of the nuclear power plant or reactor.
“No licence shall be applied for, granted, divided, or severed … in respect of any of those activities separately,” the draft rules say.
Addressing the nation on the 80th Independence Day from Red Fort here Prime Minister Narendra Modi on Saturday highlighted critical minerals, energy security and domestic resource exploration as key pillars of India’s future growth strategy, while outlining target of 100 gigawatts (GW) of nuclear power capacity by 2047 and offshore energy exploration.
Addressing the nation on the 80th Independence Day from Red Fort here, PM Modi said the government was working to secure supplies of critical minerals which are essential for advanced technologies.
Calling energy security the need of the hour, PM Modi said nuclear energy would play a major role in meeting future demand.
He said Parliament’s passage of the SHANTI Act had opened a new pathway for the sector with India targeting 100 gigawatts (GW) of nuclear power capacity by 2047.
The government also aims to begin five new nuclear reactors within this decade.
Twelve years ago, the country had a solar energy capacity of just 2 gigawatts. Today, we have achieved a capacity of 160 gigawatts,according to the Prime Minister.
PM Modi also highlighted growth in solar power, saying India’s installed solar energy capacity had increased from 2 GW around 12 years ago to 160 GW today.