India has recently unveiled comprehensive draft regulations designed to meticulously govern the operations of its nuclear power plants. These forthcoming rules mandate that operators must establish robust provisions for nuclear damage, which can be satisfied through a combination of insurance coverage, demonstrable financial security, or both. This move signifies a proactive step towards enhancing safety and accountability within the nation’s nuclear energy sector.
The Department of Atomic Energy officially released these draft rules on August 14, 2026, under the banner of the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025. The overarching goal of this legislative framework is to significantly bolster existing safeguards while simultaneously streamlining the often-complex process of obtaining clearances for new nuclear power projects. A key component of these new regulations dictates that nuclear power developers will be obligated to maintain adequate financial security to cover potential nuclear liability, the substantial costs associated with decommissioning facilities, and ongoing waste-management obligations. Furthermore, developers will be required to submit detailed plans outlining their strategies for the safe and responsible management of radioactive waste. Notably, these revisions to the nuclear energy act also address a long-standing concern within the industry by capping the liability of nuclear equipment suppliers in the event of an accident, a measure intended to provide greater clarity and predictability for manufacturers.
An intriguing aspect of the draft rules is the provision for the licensing authority to grant “in-principle approval” even when an application is submitted without a predefined site or specific technology. This flexibility could potentially accelerate the initial stages of project development. The regulations also stipulate that the required financial security and insurance cover must remain actively in force until all spent fuel has been safely removed from the relevant storage pools, underscoring a commitment to long-term safety and environmental protection. To ensure these financial limits remain appropriate and responsive to evolving circumstances, the Central government is mandated to convene a group of experts every five years to review and potentially adjust the maximum civil liability limits for nuclear damage that an operator might face.
Furthermore, the draft rules introduce a crucial requirement for nuclear power plants or reactors based on foreign designs. Such installations must demonstrate that their design has been officially certified or approved by the regulatory body in their country of origin. The definition of “country of origin” is specific, referring to nations that possess self-sufficiency in nuclear reactor design and maintain a robust supply-chain ecosystem, whose regulatory approvals are globally recognized for their trustworthiness. To further validate the safety and reliability of these foreign designs, the draft rules also stipulate that such a nuclear power plant or reactor must already be operational either within its country of origin or in another foreign nation.
These new regulations build upon earlier statements made by Mr. Jitendra Singh, Minister of State in the Prime Minister’s Office. In July of the same year, while addressing the Indian Parliament on the topic of civil liability for nuclear damage, he affirmed that the SHANTI Act establishes a variable maximum operator liability for each nuclear incident. This liability will be tiered based on the category of the nuclear installation, with amounts ranging from INR1,000 million (approximately $10.4 million USD) to INR30,000 million. This tiered approach aims to align financial responsibility with the potential risks associated with different types of nuclear facilities.
