The ‘Shanti Bill’ and Private Participation in India’s Nuclear Power Sector
Context : The Union Cabinet has approved the proposed Atomic Energy Bill (informally known as the ‘Shanti Bill’), which amends the Atomic Energy Act, 1962. This landmark legislative change is designed to facilitate and enable private sector participation in the highly regulated nuclear power generation sector, primarily to accelerate capacity addition and aid India’s long-term Net-Zero commitment.
I. The Need for Nuclear Capacity Expansion
India has committed to achieving Net-Zero emissions by 2070 and relies on non-fossil fuel sources for a major part of its electricity generation. Nuclear power is critical for achieving energy security and clean energy goals because it is a stable, low-carbon base load source .
-
Current Challenge: Currently, the entire nuclear power sector is a government monopoly managed by the Nuclear Power Corporation of India Limited (NPCIL), under the Department of Atomic Energy (DAE). Nuclear projects are highly capital-intensive and face long gestation periods, severely restricting the pace of capacity addition.
-
Goal: To meet the national clean energy targets, India needs a massive infusion of capital and technology, which the public sector alone cannot provide.
II. Mechanism for Private Sector Participation
The proposed amendment seeks to unlock private capital while retaining necessary government oversight over sensitive nuclear technology and fissile material:
-
Retention of Regulatory Control: The DAE will retain control over all aspects of nuclear fuel cycle and plant operation, safety, and security.
-
Private Equity Share: The amendment will likely allow private companies to acquire a majority equity stake in Nuclear Power Plants (NPPs), shifting the funding model.
-
Project Structuring: Private companies are expected to participate primarily in the financing and construction of the non-core components (like the turbine island) of NPPs, with NPCIL maintaining strict operational control over the nuclear reactor (the core component).
-
Fuel and Maintenance: The supply of nuclear fuel and maintenance of the core reactor technology will remain exclusively under the government’s purview.
III. Significance and Implications of the Shanti Bill
-
Mobilization of Capital: The bill will allow the government to tap into the deep pockets of the private sector, freeing up public funds for other critical social and infrastructure projects.
-
Capacity Acceleration: It is expected to significantly shorten the timeline for project execution and accelerate the commissioning of new nuclear reactors, helping India meet its clean energy and climate goals.
-
Global Benchmarking: This shift aligns India with international trends where private funding plays a crucial role in expanding nuclear capacity (e.g., in the US and Europe).
The Shanti Bill represents a crucial policy and legislative step to de-risk the nuclear sector for private investors while ensuring that the core safety and security mandate remains under stringent government control.
Subscribe to our Youtube Channel for more Valuable Content – TheStudyias
Download the App to Subscribe to our Courses – Thestudyias
The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH
