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SHANTI Act: Civil Nuclear Power Opens to Private Players & AERB Gets Statutory Status (CLAT 2027)

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CURRENT AFFAIRS | 4 MAY 2026

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India’s civil nuclear architecture, frozen since the Atomic Energy Act 1962, is being rewritten. Following the SHANTI Act passed in December 2025, the Atomic Energy Regulatory Board (AERB) finally receives statutory regulator status, and private players can now operate civil nuclear reactors. With India targeting 100 GW of nuclear by 2047 (against just 8.7 GW today, ~1.65% of installed capacity), the law dismantles a six-decade state monopoly and triggers a fresh DAE-Power Ministry tussle over jurisdiction.

What Happened

The SHANTI Act 2025 (Statutory & Holistic Atomic, Nuclear & Tariff Independence framework) accomplishes three things: (a) gives AERB independent statutory status, (b) permits private participation in civil nuclear power generation alongside NPCIL, (c) preserves the Centre’s monopoly on R&D and fuel-cycle activities. With the rules now under draft, the Department of Atomic Energy (DAE) wants supply-chain control (R&D, fuel, spent-fuel management), while the Power Ministry seeks oversight of private LWR/PWR projects. The Power Ministry argues that since private capital expects a Power-Ministry-style tariff regime, regulation must mirror it.

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Why It Matters for CLAT

This is a textbook overlap of administrative law (regulatory independence), constitutional list-distribution (Atomic Energy is List I Entry 6), and international treaty implementation. The CAG report 2012 had famously flagged that AERB lacked statutory teeth — it was subordinate to the very Atomic Energy Commission it was supposed to regulate, a textbook conflict of interest. SHANTI Act resolves this 13-year-old governance defect.

Constitutional & Statutory Framework

  • Atomic Energy Act 1962 — state monopoly on production, control, use of atomic energy
  • SHANTI Act 2025 — statutory AERB + private participation
  • Civil Liability for Nuclear Damage Act 2010 — operator liability capped at Rs 1,500 crore (Sec 6); supplier-recourse under Sec 17(b)
  • Convention on Supplementary Compensation 2010 — India ratified 2016
  • Article 51(c) — DPSP directing respect for international law/treaty obligations
  • List I Entry 6 — atomic energy & mineral resources necessary for its production

The CLAT Angle

This question can come dressed as comprehension on regulatory independence, or as legal-reasoning on whether Sec 17(b) “supplier-recourse” violates the operator-only liability principle of the CSC 2010. Trap to remember: the CLND Act 2010 caps operator liability at Rs 1,500 crore; supplier liability is only via the recourse clause — which is why foreign suppliers (Westinghouse, GE-Hitachi, Areva) historically resisted entering India.

Key Facts at a Glance

Item Detail
Current capacity ~8.7 GW (1.65% of installed)
Target by 2047 100 GW
AERB created 1983 (statutory only via SHANTI 2025)
CLND liability cap Rs 1,500 crore (Sec 6)
Supplier recourse Sec 17(b)
CSC ratified 2016
Panchamrit non-fossil 500 GW by 2030

Mnemonic — SHANTI

Statutory-AERB · Hundred-GW-2047 · Atomic-2025 · NPCIL-plus · Twin-control · Independent-regulator

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