The proposed SHANTI Act aims to change India’s nuclear liability law under the Civil Liability for Nuclear Damage Act(CLNDA). The government says the new law will attract foreign investment and boost nuclear power projects.
One major change is indemnifying suppliers. At present, under the CLNDA, suppliers can be held responsible in case of a nuclear accident. The SHANTI Act seeks to protect them from such legal claims. Supporters say this will encourage global companies to invest in India’s nuclear sector.
Critics argue that capping liability may create a “moral hazard,” where suppliers may not maintain the highest safety standards if they are protected from financial risk.
Currently, nuclear energy contributes about 3% of India’s total electricity generation. India has missed past nuclear capacity targets due to delays, high costs, public protests, and liability concerns.
The debate continues over balancing safety, accountability, and energy needs.
