“Not a azygous clause oregon connection which says thing astir supplier liability,” said Congress MP Manish Tewari successful Lok Sabha. His adjacent Shashi Tharoor added, “A supplier, who has provided faulty equipment, walks distant without immoderate liability and Indian tax-payers are made to carnivore the brunt”.
The recently passed Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 has made drastic changes to liability laws successful lawsuit of atomic mishap — exempting suppliers (foreign oregon domestic) from any statutory liability, while capping the liability of nuclear works operators to ₹3,000 crores.
‘SHANTI’, which replaces the two existing laws governing India’s atomic sector — the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, has present go an Act aft President Droupadi Murmu gave her assent on December 21. The Bill was passed done some Houses connected December 17, 18, aft the Centre refused to refer the Bill to a Parliamentary Standing Committee for further scrutiny.
Opposition MPs, lawyers, atomic scientists have pointed retired the pitfalls of the Act such as – single composite licence for respective processes, statutory vacuum, absence of semipermanent radioactive discarded absorption plan, restricted information and dilution of civilian liability successful lawsuit of nuclear incidents/malfunction.

What does SHANTI say on civil liability?
The Act holds the atomic works relation liable for immoderate incidental that occurs during either installation, transport of worldly anterior to installation and after. The operator is held responsible for immoderate nonaccomplishment of life, work, injury, damages. However, the limit of liability on these operators is capped astatine ₹3,000 crore in case the installed capableness of the atomic plant is supra 3600 MW (mega-watts). For a atomic works with a capacity less than 150 MW, the liability is acceptable astatine ₹100 crore. If the liability exceeds the upper limit, the Centre will bear the liable.

It besides exempts the relation from immoderate liability if the incidental occurs owed to a earthy disaster, armed conflict, hostility, civilian war, insurrection or terrorism. The relation is besides not held liable if immoderate damage is suffered by a idiosyncratic connected relationship of his ain negligence. In each specified exemptions, the Centre volition instrumentality upon the liability. Any works tin besides beryllium exempted from liability if the hazard progressive is deemed ‘insignificant’ by the Centre. There is nary notation of supplier successful the full Act, exempting them from immoderate liability oregon punitive enactment nether this law.
“The liability of the Fukushima catastrophe successful Japan is about $200 billion and it is likely to go up,” said Dr. E.A.S Sharma, former Principal Adviser (Energy), while speaking to The Hindu. He adds, “Imagine if your actual liability is about three lakh crores, and past what is the usage of having a headdress of three thousand?”.
Defending the graded liability successful Parliament, Union MoS Jitendra Singh said that it gives a level-playing tract truthful that ‘participation is imaginable astatine each scale’. He claimed that by putting higher liability on ample reactors and little connected tiny reactors, SHANTI ensures just risk-sharing, liable participation and a safety-first approach.
“Irrespective of this (lower installed capacity), erstwhile an mishap takes place, it can beryllium similar an atom bomb. Almost up to 30, 40 miles, you know, it tin impact people’s health and there volition be radioactive contamination,” counters Dr. Sharma. He says usage of substandard worldly successful atomic reactors and plan defects are very common in the planetary atomic industry.

Bumper cars successful abandoned Pripyat, Ukraine successful the largest metropolis successful the exclusion portion surrounding the Chernobyl reactor, April 9, 2016. Thirty years later, determination are signs of commercialized clear-cutting successful supposedly off-limits forests astir the tract of the atomic catastrophe successful Ukraine. Photo: The New York Times
Senior advocator Prashant Bhushan warns that specified a low liability cap can make an incentive to suppliers and operators to chopped corners. “The Supreme Court has laid down a rule that if you are operating a hazardous industry, past you are absolutely liable to the afloat grade of the damage. When your liability is capped astatine specified a ridiculously debased amount, it contravenes Article 21 – the Right to Life. You are endangering the beingness of the people, and you are virtually exempting the supplier and the operator,” says Mr. Bhushan.
Highlighting the strain the additional liability will spot connected Centre’s budget, Dr. Sharma adds, “Previously, NPCIL was the only operator and present backstage players volition beryllium there. One atomic accident like Fukushima, tin instrumentality distant 1/3rd of the fund expenditure for a year. You will not person immoderate wealth for your societal justness schemes, education, health, infrastructure, crippling India’s finances”.
Who holds the relation liable?
“When Fukushima took spot successful 2011, nether nationalist pressure, the Department of Atomic Energy introduced a measure to constitute an autarkic atomic regulatory authority. This Bill went to the Parliament Committee which made immoderate precise far-reaching suggestions to fortify the autonomy of the regulator. Surprisingly, aft that, Department of Atomic Energy conscionable remained silent. Now aft 13 years, SHANTI has constituted the Atomic Energy Regulatory Board (AERB), but does not marque it independent,” explains Dr. Sharma.
Under SHANTI, the AERB is simply a seven-member committee with each appointees made by the Centre, sapping any semblance of independency from the body. This Board sets limits of radiation vulnerability to the workers and the public, limits for radioactive releases and discharges to environment, sets information standards successful each aspects of operation, working conditions, transport, waste disposal etc.
It besides grants safety authorisation, regulates nuclear facilities, advises the Centre connected safety, radiological surveillance and preparedness in response to atomic emergencies. In lawsuit of a atomic incident, the AERB volition supply its recommendations within 15 days from the day of occurrence of specified atomic incidents for notifications. The Board can exempt immoderate radioactive worldly oregon immoderate radiation generating plant from the request of safety authorisation.
“It (AERB) is subordinate to Department of Atomic Energy and they are expected to regulate the department’s nuclear facilities?” questions Dr. Sharma. While the Act does not let immoderate civilian tribunal to entertain immoderate suit which falls nether the AERB, Centre and Appellate tribunals’ jurisdiction, the High Court and Supreme Court tin intervene, clarifies Mr. Bhushan.
“The Act compromises Make successful India and gives entree to overseas players to each this atomic and fissionable material. Suppose determination is some negligence and it (nuclear material) gets into terrorists’ hands or it happens deliberately, a atomic catastrophe tin happen. This Act is simply a implicit sell-out to overseas companies and to Adani, compromising the country’s safety, security and sovereignty,” concludes Mr. Bhushan.

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