Will SHANTI Act aid India’s nuclear development? | Explained

India's journey towards energy security and sustainable development has always placed a significant emphasis on nuclear power. The proposed 'Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act' (SHAKTI Act) marks a pivotal moment in this endeavor, aiming to modernize and accelerate the nation's nuclear program. This legislative initiative is not merely an amendment; it signifies a strategic recalibration of India's approach to nuclear energy, moving beyond the confines of the existing regulatory framework to foster greater growth and innovation.

The background to this new Act lies in India's burgeoning energy demand, its commitment to combating climate change, and the inherent limitations of its current nuclear legal and operational structure. For decades, the Atomic Energy Act of 1962 has served as the bedrock of India's nuclear program. While instrumental in establishing a robust, self-reliant nuclear infrastructure under the Department of Atomic Energy (DAE), it was primarily designed for a state-controlled, research-driven program. The global energy landscape, characterized by climate imperatives and technological advancements, now demands a more agile and commercially oriented approach. India has pledged to achieve Net Zero emissions by 2070 and aims to significantly increase its non-fossil fuel electricity generation capacity, making nuclear power an indispensable component of its energy mix.

The SHAKTI Act is designed to replace or substantially amend the Atomic Energy Act of 1962. Its core contours include streamlining regulatory processes, encouraging private sector participation, and facilitating the deployment of advanced nuclear technologies, particularly Small Modular Reactors (SMRs). The Act seeks to create a more attractive environment for investment, both domestic and potentially international, by providing a clearer legal framework for project development, site selection, and financial models. India currently aims to achieve a nuclear power capacity of 22,480 MW by 2031, a substantial increase from its current operational capacity of around 7,480 MW. The SHAKTI Act is expected to be a key enabler for this ambitious target and beyond, fostering greater efficiency and speed in project execution.

Key stakeholders in this legislative shift include the Government of India, primarily through the Department of Atomic Energy (DAE) and the Nuclear Power Corporation of India Limited (NPCIL), which has historically been the sole operator of commercial nuclear power plants. The Atomic Energy Regulatory Board (AERB) will continue its crucial role in ensuring safety and compliance. Crucially, the private sector, both Indian and international, stands to become a much more prominent stakeholder. The Act aims to open avenues for private entities to participate in various aspects, from component manufacturing and construction to potentially even operating certain facilities, especially in the SMR segment. International partners, particularly those with advanced SMR technology, could also become significant players, fostering collaborations that bolster India's technological capabilities and supply chains. The public, too, remains a key stakeholder, with concerns regarding safety, environmental impact, and land acquisition needing careful consideration and transparent communication.

This Act matters profoundly for India's future. From an energy security perspective, it diversifies the energy mix, reducing reliance on volatile fossil fuel imports and enhancing grid stability. Environmentally, nuclear power offers a clean, large-scale baseload electricity source, critical for India's climate change mitigation efforts and its commitments under the Paris Agreement. Economically, increased nuclear development will spur industrial growth, create high-skill jobs, and foster indigenous technological innovation. The focus on SMRs is particularly significant. SMRs, with their smaller footprint, lower upfront costs, and greater flexibility, can be deployed in remote areas, for industrial heat applications, and even for desalination, offering decentralized power solutions that align with India's developmental needs. This move could position India as a leader in SMR deployment and technology, potentially opening up export opportunities in the future.

Historically, India's nuclear program, initiated by Homi J. Bhabha, has been characterized by a drive for self-reliance due to international sanctions following its nuclear tests. The three-stage nuclear power program, designed to utilize India's vast thorium reserves, remains a long-term strategic goal. The Indo-US Civil Nuclear Deal of 2008 marked a turning point, ending India's nuclear isolation and opening avenues for international cooperation in civilian nuclear technology. The SHAKTI Act builds on this legacy, aiming to leverage both indigenous capabilities and global partnerships to accelerate growth.

Future implications of the SHAKTI Act are far-reaching. It is expected to usher in an era of faster nuclear power plant construction, potentially reducing costs through economies of scale and standardized designs, particularly with SMRs. The increased private sector involvement could bring in much-needed capital and operational efficiencies. However, challenges persist, including securing adequate funding, ensuring robust safety regulations that inspire public confidence, addressing nuclear waste management, and navigating complex international supply chain issues. Successful implementation of the SHAKTI Act could transform India's energy landscape, making nuclear power a cornerstone of its sustainable development and a significant contributor to its net-zero aspirations.

Constitutionally, nuclear energy falls under the exclusive legislative competence of the Union Government, as stipulated in **Article 246** read with **Entry 6** of the **Union List** (List I) in the **Seventh Schedule**. The **Atomic Energy Act, 1962**, which the SHAKTI Act seeks to reform, derives its authority from this provision. Other relevant legislation includes the **Civil Liability for Nuclear Damage Act, 2010**, which addresses compensation for nuclear accidents and operator liability. Environmental clearances will be governed by the **Environment Protection Act, 1986**. The Department of Atomic Energy (DAE) itself functions directly under the Prime Minister, underscoring the strategic importance of nuclear power to national security and development. The new Act will align with India's broader energy policies, including the National Energy Policy, and its Nationally Determined Contributions (NDCs) under the Paris Agreement, solidifying its commitment to clean energy transition.