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SHANTI Act Draft Rules: Graded Nuclear Liability Caps up to ₹3,000 Cr, 5-Year Review Mechanism

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
20 Aug 2026
~2 min
Source: Indian Express
Key Data:₹3,000 crore₹1,500 crore₹750 crore₹300 crore₹100 crore5-year review
Bodies:Department of Atomic EnergySupreme Court
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What This Article Covers

1.SHANTI Act draft rules introduce graded liability caps for nuclear operators based on plant size: ₹100 Cr (≤150 MWe) to ₹3,000 Cr (>3600 MWe).

2.Rule 78 mandates a 5-year review by an expert group comprising nuclear science, actuarial, insurance, law, and public-interest representatives.

3.The Act removes Section 17(b) of CLNDA (liability for supplier defects) which had deterred foreign vendors, retaining only contractual and intentional damage recourse.

The Big Picture
Prelims · HighMains · Medium

The Department of Atomic Energy has released draft rules under the SHANTI Act introducing graded liability caps for nuclear operators, ranging from ₹100 crore to ₹3,000 crore based on reactor size, with a mandatory 5-year review by an expert group. This replaces the earlier flat ₹1,500 crore cap under the CLNDA 2010 and aims to attract private and foreign investment by diluting supplier liability. The Supreme Court is currently examining the adequacy of these caps and the Act's impact on compensation rights.

Exam Lens

Quick Exam Facts From News

Operator Liability Caps>3600 MWe: ₹3,000 Cr; 1500-3600 MWe: ₹1,500 Cr; 750-1500 MWe: ₹750 Cr; 150-750 MWe: ₹300 Cr; ≤150 MWe: ₹100 Cr
Review PeriodEvery 5 years
Expert Group CompositionNuclear science, engineering, actuarial science, insurance, law, public interest
Nodal BodyDepartment of Atomic Energy
Supreme Court QueryWhether SHANTI Act precludes courts from determining 'fair and just' compensation

1-Minute Revision

  • ›Operator Liability Caps: >3600 MWe: ₹3,000 Cr; 1500-3600 MWe: ₹1,500 Cr; 750-1500 MWe: ₹750 Cr; 150-750 MWe: ₹300 Cr; ≤150 MWe: ₹100 Cr
  • ›Review Period: Every 5 years
  • ›Target this Data: Graded liability caps: ₹100 Cr (≤150 MWe), ₹300 Cr (150-750 MWe), ₹750 Cr (750-1500 MWe), ₹1,500 Cr (1500-3600 MWe), ₹3,000 Cr (>3600 MWe).
  • ›Target this Nodal Body: Department of Atomic Energy (DAE) – not Ministry of Power or Ministry of Environment.
  • ›Target this Legal Point: SHANTI Act replaces CLNDA 2010; removal of Section 17(b) (supplier liability for defects) – differs from CLNDA's right of recourse.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which administrative body is primarily responsible for the implementation of the SHANTI Act and its draft rules?

Q2Statement-basedHard

Consider the following statements regarding the SHANTI Act draft rules:

1. The liability caps are graded based on the size of the nuclear installation, with the highest cap of ₹3,000 crore for reactors above 3,600 MWe.

2. The SHANTI Act retains the operator's right of recourse against suppliers for latent defects in equipment.

3. The expert group to review liability caps will include representatives from nuclear science, actuarial science, insurance, law, and public interest.

Which of the statements given above is/are correct?

Q3Data-centricMedium

Under the new draft rules, what is the operator liability cap for a nuclear reactor with a capacity of 2,000 MWe?

Q4Application/ImpactMedium

What is the primary reason for the removal of clause (b) under Section 17 of the CLNDA in the SHANTI Act?

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