Why in News?

• Recently, the Indian government cleared the Atomic Energy Bill 2025 — rebadged as the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill.
• The proposed amendments aim to overhaul India’s highly closed atomic energy framework by modifying the Atomic Energy Act, 1962 and aligning it with global practices to enable private and foreign participation in civil nuclear power.
• This move is crucial for India’s long-term energy security, climate commitments, and grid stability.

What’s in Today’s Article?

• Reforming India’s Nuclear Sector
• Key Provisions of the Atomic Energy Bill 2025 (SHANTI Bill)
• Scaling Up Nuclear Capacity - India’s Ambition
• SMRs - The New Pillar of India’s Nuclear Strategy
• Private Sector Interest in SMRs
• Nuclear Liability Law - The Key Bottleneck
• Challenges and Way Forward
• Conclusion

Reforming India’s Nuclear Sector:

• Energy transition and baseload needs:
  • Rapid renewable expansion without adequate energy storage has increased grid instability.
  • Thermal capacity expansion is slowing, and coal is environmentally and politically constrained.
  • Nuclear energy offers reliable baseload power and a low-carbon alternative.
• Capital constraints, not technology deficit:
  • India’s push for global nuclear collaboration is driven more by capital requirements than technology.
  • Interest from foreign sovereign wealth funds, especially from West Asia, has been expressed.
• Leveraging the Indo-US Civil Nuclear Deal:
  • Nearly two decades after being signed, the deal’s commercial potential remains underutilised.
  • The reforms are being packaged as part of India–US trade and investment negotiations.

Key Provisions of the Atomic Energy Bill 2025 (SHANTI Bill):

• Opening up to private and foreign players: Private companies allowed up to 49% minority equity in nuclear power projects. Potential entry of foreign companies in partnership with global sovereign funds.
• Expanded scope of private participation:
  • Exploration of atomic minerals
  • Fuel fabrication
  • Equipment manufacturing
  • Select aspects of plant operations
  • Research & Development (R&D) of civil nuclear technologies, especially Small Modular Reactors (SMRs) - under 300 MW nuclear fission reactors built in factories and shipped to sites.

Scaling Up Nuclear Capacity - India’s Ambition:

• Target: 100 GWe nuclear capacity by 2047, up from about 8 GWe currently.
• Global comparison: USA (approx. 100 GWe); France (~65 GWe); China (58 GWe).
• Nuclear Energy Mission:
  • Outlay: ₹20,000 crore for R&D in Small Modular Reactors (SMRs).
  • Goal: At least 5 indigenously developed SMRs operational by 2033.

SMRs - The New Pillar of India’s Nuclear Strategy:

• Why SMRs?
  • Smaller size, modular construction, quicker deployment.
  • Suitable for industrial decarbonisation and captive power (e.g., data centres, steel, cement).
  • Provide carbon-neutral baseload power, complementing renewables.
• Indian SMR designs under development:
  • Developed by Bhabha Atomic Research Centre (BARC) -
    • Bharat Small Reactor (BSR – 220 MWe) – Pressurised Heavy Water Reactor (PHWR)-based
    • Bharat Small Modular Reactor (BSMR – 200 MWe) – Light Water Reactor (LWR)
    • SMR-55 (55 MWe) – LWR-based
  • Designs are at an advanced stage; no foreign collaboration envisaged initially.

Private Sector Interest in SMRs:

• Companies expressing interest: Reliance Industries, Tata Power, Adani Power, Hindalco, JSW Energy, Jindal Steel & Power.
• 16 potential sites: Across Gujarat, Madhya Pradesh, Odisha, Andhra Pradesh, Jharkhand, Chhattisgarh.
• Operational model:
  • The state-owned Nuclear Power Corp of India Ltd (NPCIL) retains ownership and operational control.
  • Private players will fund the entire project lifecycle (including decommissioning), and get assured long-term captive power.
  • Concerns raised over ownership structure, charges and cost recovery, long-term project viability.

Nuclear Liability Law - The Key Bottleneck:

• Civil Liability for Nuclear Damage Act, 2010 (CLNDA):
  • Includes “right of recourse”, allowing operators to seek compensation from suppliers.
  • Foreign vendors (Westinghouse, EDF/Areva) see this as a major investment deterrent.
• Proposed workarounds:
  • Capping supplier liability beyond a threshold.
  • Creation of a state-backed insurance or fund pool.
  • Aligning Indian law with global nuclear liability conventions.

Challenges and Way Forward:

• Political and public concerns over nuclear safety: Strengthen independent nuclear safety oversight. Promote SMRs for industrial decarbonisation and grid stability.
• Private sector worries: Commercial viability and risk-sharing. Leverage reforms to deepen strategic partnerships (US, France, Russia).
• Scalability issues: India’s PHWR-dominated reactor fleet. Gradually move towards globally dominant LWR technologies while preserving indigenous capability.
• Need to balance: Sovereignty, safety, and openness. Integrate nuclear energy within India’s climate and energy transition strategy.
• Managing liability reforms: Without diluting victim compensation. Ensure clear regulatory frameworks and predictable liability regimes.

Conclusion:

• The Atomic Energy Bill 2025 marks a paradigm shift in India’s nuclear energy policy, transitioning from a state-dominated, closed model to a strategic, investment-friendly and climate-aligned framework.
• If implemented carefully, the SHANTI Bill could become a cornerstone of India’s energy security and net-zero pathway.