A case against the SHANTI Act | Explained

The SHANTI Act opens the nuclear power sector to private entities while indemnifying suppliers, capping liability, and limiting avenues for victims to seek remedies.

The story so far:

The SHANTI Act, passed in the Winter Session of Parliament, opens the nuclear power sector to private entities and alters the liability framework under the Civil Liability for Nuclear Damage Act (CLNDA). The changes — especially on supplier indemnity and liability caps — have raised concerns about safety and accountability.

The Act has three main features.

First, it allows private entities to operate nuclear plants, ending the Union government’s exclusive control over the sector. Second, the Act indemnifies nuclear suppliers by channelling liability for any accident to the operator. It omits the “right of recourse” that allowed operators to sue suppliers for accidents caused by defective equipment. The operator’s liability is capped between ₹100 crore for small plants and ₹3,000 crore for the largest plants. The total liability for an accident, including that of the Centre, is capped at 300 million Special Drawing Rights, which is about ₹3,900 crore. The Act also omits Clause 46 of the CLNDA, which allowed victims to invoke other laws, including criminal laws, to seek remedies.

Finally, it provides a legislative framework for the Atomic Energy Regulatory Board but limits the Board’s independence by stipulating that its members will be selected by a committee “constituted by the Atomic Energy Commission.”

Design defects have played a role in all major accidents.