The Indian government is preparing to introduce a landmark piece of legislation that could reshape the country's nuclear energy landscape. Known as the Shanti Bill 2025, this proposed law seeks to amend the existing Civil Liability for Nuclear Damage Act (CLNDA) of 2010. The primary objective is to address long-standing concerns of foreign and domestic suppliers, thereby accelerating the expansion of India's nuclear power capacity.
Addressing the Supplier Liability Clause
The core of the proposed amendment revolves around the contentious Section 17(b) of the 2010 Act. This clause has been a major stumbling block for international nuclear technology providers. It grants the Nuclear Power Corporation of India (NPCIL), the operator, the right to seek recourse from suppliers in the event of an accident caused by defective equipment or substandard services.
Foreign suppliers, particularly from countries like the United States, France, and Russia, have consistently argued that this clause creates an open-ended and unpredictable liability risk. This perceived risk has hindered their full participation in India's nuclear projects for over a decade. The Shanti Bill 2025 is expected to rewire this provision, potentially by capping the liability for suppliers or clarifying the channels and limits of recourse. This change is seen as crucial for attracting the advanced technology and investment needed for new reactor projects.
Boosting Domestic Manufacturing and 'Aatmanirbharta'
Beyond attracting foreign players, the bill has a strong domestic focus aligned with the national goal of self-reliance, or 'Aatmanirbharta'. By creating a more predictable and supplier-friendly legal environment, the government aims to incentivize Indian companies to enter the nuclear supply chain. This includes manufacturing critical components, providing construction services, and developing indigenous reactor technologies.
The move is strategic. It seeks to build a robust domestic industrial ecosystem around nuclear energy, reducing long-term dependence on imports and creating high-skilled jobs. A clearer liability framework will give confidence to Indian banks and financial institutions to fund local suppliers, further strengthening the domestic sector.
Implications for India's Clean Energy Goals
The proposed legislation is not an isolated policy shift but a key enabler for India's ambitious clean energy and climate commitments. Nuclear power is a critical component of India's strategy to generate massive amounts of carbon-free baseload electricity. The country has set a goal to triple its nuclear power capacity from the current 7,480 Megawatts to 22,480 Megawatts by 2031-32.
Unlocking stalled projects, such as the planned reactors in Kovvada (Andhra Pradesh) and Chhaya-Mithi Virdi (Gujarat), which involve foreign collaboration, hinges on resolving the liability issue. The Shanti Bill 2025, therefore, is positioned as a necessary catalyst to move these projects from the drawing board to construction, helping India meet its growing energy demands while transitioning away from fossil fuels.
While the final text of the bill is yet to be made public and will require parliamentary approval, its introduction signals a pragmatic approach by the government. It acknowledges the need to balance the paramount importance of public safety and operator responsibility with the practical realities of global nuclear commerce and domestic industrial growth. The successful passage of this bill could mark the beginning of a new, accelerated chapter in India's nuclear energy journey.
