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Project: Rules for private stake in Nuclear Energy

Fiinews by Fiinews
July 24, 2026
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Rajya Sabha gets update on civil liability in nuclear accidents

Rules related to private sector participation in Nuclear Energy under the SHANTI Act are currently in drafting stage and will be notified in accordance with due legislative processes, and the applications for licences from private parties will then be taken into consideration, Minister of State for Atomic Energy and Space Dr Jitendra Singh has told Rajya Sabha on 23 July.

The framework in respect of civil liability for nuclear damage for accidents has been provided in Sec 13 & 14 of the SHANTI Act, 2025, he said in a written reply to the house.

The maximum amount of liability in respect of each nuclear incident shall be the rupee equivalent of three hundred million Special Drawing Rights or as specified by Central Government.

The maximum amount of liability of an operator in respect of each nuclear incident for different categories of nuclear installation is:

Reactors having thermal power above 3600 MW – Rs.3,000 crore

Reactors having thermal power above 1500 MW and up to 3600 MW – Rs.1,500 crore

Reactors having thermal power above 750 MW and up to 1500 MW – Rs.750 crore

Reactors having thermal power above 50 MW and up to 750 MW – Rs.300 crore

Reactors having thermal power up to 150 MW, fuel cycle facilities other than spent fuel reprocessing plants and transportation of nuclear materials – Rs.100 crore.

The Central Government shall be liable for nuclear damage in respect of a nuclear incident:

where the operator’s liability exceeds the amount specified in the Second Schedule, to the extent such liability exceeds the liability of the operator;

where the nuclear incident has occurred in a nuclear installation owned by the Central Government;

where the nuclear incident has occurred on account of a grave natural disaster of an exceptional character or an act of armed conflict, hostility, civil war, insurrection or terrorism.

For the purpose of meeting its liability, the Central Government may establish Nuclear Liability Fund with levy charged from the tariff on the electricity sold to the consumers.

The Central Government may take additional measures, where necessary, if the compensation to be awarded under this Act exceeds three hundred million Special Drawing Rights, including seeking funds under the Convention on Supplementary Compensation for Nuclear Damage signed at Vienna on the 27th day of October, 2010 to which India is a signatory.

The private operators shall obtain an insurance policy or other financial security or combination of both before operation of nuclear installation, covering their liability. The operator should renew the insurance policy or other financial security before the expiry of the period of validity from time to time, said the Minister.

The SHANTI Act specifies that the information which are regarded as “restricted information” and disclosure of such information which are detrimental to national security and public interest are exempted from disclosure. These provisions are in alignment with the RTI Act. Further, SHANTI Act provides the Regulatory Board to ensure transparency by a planned public outreach and engagement with interested party on matter related to nuclear safety without disclosing restricted information. Fiinews.com

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