SHANTI Bill 2025: A Game-Changer for India’s Nuclear Energy Growth
Synopsis
Key Takeaways
New Delhi, March 11 (NationPress) The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill of 2025 marks a significant advancement in enhancing India's nuclear power framework, as indicated by a report released on Wednesday.
Infomerics Ratings characterized the bill as a "structural long-term positive" development for the Indian energy sector, tackling persistent barriers to the expansion of nuclear capacity, notably issues related to liability and participation.
The anticipated growth in nuclear power is projected to be gradual, with an increase to approximately 22 Giga Watts (GW) by FY2032, factoring in both ongoing and planned projects, according to the firm.
The SHANTI Bill 2025 will supersede the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, establishing a comprehensive legal framework that addresses development, safety, security, safeguards, and nuclear liability.
This legislation allows government entities, companies, joint ventures, or other individuals specifically authorized by the central government to construct, own, operate, or decommission nuclear facilities as well as produce nuclear fuel, including its conversion.
With commitments to achieve net-zero emissions and growing electricity demand, nuclear energy emerges as a pivotal element in India's future energy landscape, especially as the intermittency of renewable resources inhibits their capacity to meet the consistent base load demand, even with storage solutions in place, the firm pointed out.
“The bill introduces operator liability caps categorized by type and limits recourse to suppliers to defined contractual and intentional fault scenarios, which mitigates supplier risk, enhances investor confidence, and encourages increased private sector involvement in upcoming nuclear initiatives,” stated Rohit Inamdar, Chief Ratings Officer at Infomerics Ratings.
Nonetheless, the report emphasized that the expansion of nuclear power capacities will also hinge on tariff competitiveness and the establishment of a domestic vendor ecosystem.
Crucial factors for the growth of nuclear capacity will include long-term sovereign-backed fuel supply agreements, the creation of strategic reserves, and the development of domestic fuel-cycle infrastructure, the firm noted.
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