**Executive Summary**
This report outlines the provisions of the SHANTI Act, 2025, which facilitates private sector participation in India's nuclear energy sector for power and non-power applications. It establishes a graded civil liability regime for nuclear damage and empowers the Atomic Energy Regulatory Board (AERB) to maintain safety oversight across both public and private entities. A key statutory requirement mandates the AERB to provide recommendations for notifying nuclear incidents to the Central Government within 15 days of occurrence.
**Key Points / Main Content**
**The SHANTI Act, 2025**
* **Private Participation:** Allows private entities to set up nuclear facilities and engage in the production, use, and disposal of nuclear energy.
* **Licensing Requirements:** Operations require a license from the Central Government and safety authorization from the AERB.
* **Objectives:** Aimed at the promotion, development, and secure utilization of nuclear energy and ionizing radiation.
**Civil Liability for Nuclear Damage**
* **Graded Liability:** Establishes a liability range from 100Cr to 3000Cr based on the specific type of nuclear facility.
* **Operator Responsibility:** Compensation follows the principle of prompt payment by the operator under strict and no-fault liability.
* **Government and International Coverage:** The Government of India’s liability is capped at 300 million SDR; claims beyond this may be sought through the Convention on Supplementary Compensation.
**Regulatory and Safety Framework**
* **AERB Authority:** The AERB remains the statutory body responsible for framing safety rules, standards, and conducting multi-tier safety reviews.
* **Neutrality:** The regulatory framework is entity and technology neutral, applying identical safety standards to both public and private nuclear power projects.
* **Enforcement:** AERB conducts periodic inspections and enforces corrective or remedial measures in the event of safety deviations.
**Impact Analysis**
**Private Sector Entities**
**Impact**
Eligible to participate in the nuclear sector for power generation and non-power applications, previously restricted to public entities.
**Action Required**
Must secure licenses from the Central Government and obtain formal safety authorizations from the AERB before commencing activities.
**Atomic Energy Regulatory Board (AERB)**
**Impact**
Responsible for regulating an expanded pool of stakeholders (private and public) under a technology-neutral framework.
**Action Required**
Must provide recommendations to the Central Government for notifying nuclear incidents within 15 days of their occurrence.
**Central Government**
**Impact**
Acts as the primary licensing authority and assumes financial liability for nuclear damage up to 300 million SDR.
**Action Required**
Review AERB recommendations and notify the public regarding nuclear incidents as per the SHANTI Act, 2025 guidelines.
Key Entities Referenced
SHANTI Act, 2025: A law that enables private sector participation in nuclear facilities and establishes a graded civil liability regime for nuclear damage.
Atomic Energy Regulatory Board (AERB): The statutory body responsible for setting safety standards, licensing nuclear activities, and conducting regulatory inspections.
Atomic Energy Act, 1962: The primary legislation under which the AERB performs its regulatory and safety functions.
Convention on Supplementary Compensation: An international convention for nuclear damage liability that provides a mechanism for compensation beyond national liability limits.
Department of Atomic Energy
PARLIAMENT QUESTION: NUCLEAR ENERGY
SECTOR
Posted On: 01 APR 2026 7:50PM by PIB Delhi
The SHANTI Act which has received the assent of President of India on 21st December, 2025 allows
private sector participation for setting up a nuclear facility, or to carry out activities for the production,
use and disposal of nuclear energy under a license from the Central Government and safety authorization
of the Regulatory Board. This Act has been enacted for the promotion and development of nuclear energy
and ionising radiation for nuclear power generation, and other non-power applications, and for its safe
and secure utilisation.
This Act also has provisions for civil liability for nuclear damage in case of any nuclear incident in the
nuclear installation. The SHANTI Act has aligned the civil liability for nuclear damage with international
liability regime. It provides a pragmatic and graded approach for nuclear damage liability from 100Cr to
3000Cr based on the type of nuclear facility. The principal for payment compensation for the nuclear
damage is prompt payment by operator with strict and no-fault liability. Above operator’s liability,
Government of India’s liability is upto 300 million SDR. Above this liability, Government can seek from
Convention on Supplementary Compensation which is an international Convention to which India is
party.
Government of India has established the Atomic Energy Regulatory Board (AERB) by a statutory order
(S.O. 4772), to carry out certain regulatory and safety functions envisaged under Section 16, 17 and 23 of
the Atomic Energy Act, 1962. Atomic Energy Regulatory Board (AERB) is empowered to lay down
safety standards and frame rules and regulations for regulatory and safety envisaged under the Act.
Nuclear Power Plants (NPPs) in India are sited, designed, constructed, commissioned & operated in
conformity with relevant nuclear safety requirements including environmental safety. Highest level of
nuclear safety is ensured in the NPPs, which is verified through systematic multi-tier safety review in
AERB and periodic regulatory inspections of NPPs carried out by AERB. In case any deviation is
noticed, AERB enforces suitable corrective/ remedial measures.
The Parliament has recently passed the SHANTI Act, 2025 which envisages participation of private
entities in the nuclear sector. The regulatory framework and requirements of AERB are generally entity
and technology neutral. Therefore, the same regulatory framework can be utilised for safety regulation of
any Nuclear Power Project irrespective of the entity involved (Private/Public).
AERB has established criteria for reporting of nuclear incidents by the licensee. As per the recently passed
SHANTI Act, 2025, AERB is required to provide its recommendations to the Central Government for
notifying such nuclear incidents, within 15 days from the date of occurrence of the nuclear incident.
This information given by Union Minister of State (Independent Charge) for Science & Technology and
Earth Sciences, and Minister of State in the Prime Minister’s Office, Personnel, Public Grievances and
Pensions, Atomic Energy and Space, Dr. Jitendra Singh in a written reply in Lok Sabha today on 1st April,
2026, Wednesday.*****
NKR/AK
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