SHANTI | Lok Sabha passes bill to open up nuclear sector for private companies

Union minister Jitendra Singh termed the bill a 'milestone legislation' that will give a new direction to the country's developmental journey.

New Delhi: The Lok Sabha on Wednesday cleared the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill that seeks to open up the closely-guarded nuclear power sector to private industry.

Union Science Minister Jitendra Singh declared it as a “stakeholder-friendly bill”, even as the opposition parties staged a walk-out criticising the bill’s provisions.

The minister said the bill would be necessary for India’s growing energy needs because of the target of having 100 GW of installed capacity of nuclear energy by 2047 that would be just about 10 per cent of India’s total electricity requirement.

The SHANTI Bill seeks to repeal the Atomic Energy Act, 1962 and the Civil Liability to Nuclear Damage Act 2010 that currently govern the nuclear-sector. Also the Atomic Energy Regulatory Board has been given a statutory position as the existing AERB was set up by an executive order and not by a law.

Currently, the civilian nuclear power sector is completely under government control with the state-owned Nuclear Power Corporation of India Limited producing 8.7 GW from 24 operational reactors.

The bill was passed by a voice vote after opposition parties criticised its provisions. Senior Congress MP Manish Tewari tore into the draft law saying that the ruling BJP was undermining India’s energy independence and clean energy goals by breaking a 2010 consensus on nuclear liability regime.

Tewari said there was a consensus in 2010 to make the supplier liable for nuclear accidents by making provisions for the operator’s right to recourse.

Such a provision, he said, was incorporated as it was felt that with foreign suppliers coming into the sector, this provision was important and it was supported by the BJP. “If a nuclear accident takes place, since we are dependent on foreign suppliers, shouldn’t the supplier be liable?” the Chandigarh MP asked.

Responding to the debate, the minister said the government dropped the clause on supplier’s liability because “foreign collaborators had reservations” and technology has changed between 2010-2025. “We now plan a big way on small modular reactors.”

“Yes, BJP supported the clause (17B) in the 2010 liability law. But times are changing. In the last 10 years, we lost on collaboration. Under this bill, the government will deal only with the operators,” he said, noting that the supplier liability was removed after detailed consideration of global practices and advances in reactor safety.

The minister said the operator’s liability was capped at Rs 3,000 crore and in case the damage is more, the government will pay the additional amount. “We will put in place a nuclear liability fund,” he said. “Also, we can seek additional international compensation through India’s participation in the Convention of Supplementary Compensation.”

Singh said the government would have full control on spent fuel, heavy water and fissile material, even in private nuclear reactors.

Opposing the bill, Trinamool Congress’ Saugata Roy demanded that the liability cap should be increased.

Congress’ Shashi Tharoor said it was “not nuclear bill but unclear bill” and such a “dangerous” bill should go to a standing committee or a JPC. DMK’s Arun Nehru said the liability cap of Rs 3,000 crore was very “miniscule”.