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Draft SHANTI Rules 2026: Government Proposes Nuclear Liability and Insurance Framework

The proposed rules aim to create a clear framework for nuclear operator liability

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Draft SHANTI Rules 2026: Government Proposes Nuclear Liability and Insurance Framework

Why in News?

The Department of Atomic Energy has released the draft SHANTI Rules, 2026, to operationalise the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025. The proposed rules aim to create a clear framework for nuclear operator liability, insurance, financial security and licensing, as India seeks to expand nuclear power generation and increase private-sector participation.

About

Nuclear Liability and Financial Security

  • Nuclear operators will be required to maintain insurance, financial security, or a combination of both to cover potential nuclear damage.
  • Financial security must remain in place until all spent fuel is removed from the relevant storage pool.
  • The Centre will constitute an expert group every five years to review the maximum limits of an operator's civil liability.

Rules for Foreign Reactor Technology

For a nuclear plant based on a foreign design:

  • The design must be approved or certified by the regulatory authority of the country of origin.
  • The reactor must already be operational either in the country of origin or another foreign country.
  • The country of origin must have a recognised nuclear reactor design and supply-chain ecosystem.

In-Principle Approval

  • The rules propose an “in-principle approval” mechanism.
  • Developers may begin negotiations with reactor technology vendors and acquire land and infrastructure even before the final site or reactor technology is selected.
  • This could help reduce delays in project development.

Single Composite Licence

The draft proposes a single composite licence covering the entire lifecycle of a nuclear facility, including:

  • Construction
  • Ownership
  • Operation
  • Decommissioning

Separate licences would not be required for each stage.

Significance

  • Provides greater clarity on nuclear liability and financial protection.
  • Can encourage private investment and foreign technology in the nuclear sector.
  • May reduce delays in developing nuclear projects.
  • Strengthens safeguards against potential nuclear damage.
  • Supports India's long-term goal of expanding nuclear energy capacity while maintaining regulatory oversight.

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