New SHANTI Act Caps Nuclear Liability, Exempts Suppliers, Sparks Safety Fears
December 27, 2025
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 has become law after President Droupadi Murmu’s assent on December 21. The Act caps liability of nuclear plant operators at ₹3,000 crore for plants above 3600 MW, with lower caps for smaller plants. Crucially, it exempts suppliers — whether foreign or domestic — from any liability in case of nuclear accidents.
Congress MP Manish Tewari criticised this in Lok Sabha, saying, “Not a single clause or word which says anything about supplier liability.” Shashi Tharoor added, “A supplier, who has provided faulty equipment, walks away without any liability and Indian tax-payers are made to bear the brunt.”
Under SHANTI, the operator is responsible for accidents caused during installation, transport, or operation, but exemptions exist for natural disasters, terrorism, and if the person affected was negligent. If costs exceed the liability caps, the government covers the rest.
Experts express concern. Former Principal Adviser Dr E.A.S Sharma noted the Fukushima disaster cost $200 billion and questioned the usefulness of such a low ₹3,000 crore cap. Senior advocate Prashant Bhushan said, “When your liability is capped at such a ridiculously low amount, it contravenes Article 21 – the Right to Life.”
The Act also creates the Atomic Energy Regulatory Board (AERB), appointed entirely by the Centre, which critics say lacks independence. The AERB sets safety and radiation exposure standards but is subordinate to the Department of Atomic Energy.
Critics warn the Act may encourage cutting corners and compromise India’s nuclear safety, security, and sovereignty. Opposition MPs, scientists, and lawyers also highlight missing provisions on radioactive waste management and restricted information sharing.
Union Minister Jitendra Singh defended the Act, claiming the graded liability offers a “level-playing field” for all sizes of projects and promotes a safety-first approach.
The SHANTI Act replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, aiming to transform India’s nuclear sector but raising fresh debate on balancing industrial growth with safety.
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Shanti Act
Nuclear Liability
Manish Tewari
Shashi tharoor
Nuclear Safety
Atomic Energy Regulatory Board
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