The Centre has proposed a financial security framework for nuclear power plant operators, along with changes to licensing and approval procedures, under the draft rules of the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025.
The Department of Atomic Energy released the draft rules on Friday, setting out requirements for insurance cover, financial security, foreign reactor technology and licensing of nuclear power plants. The provisions seek to provide a regulatory framework for the expansion of nuclear energy.
Under the proposed rules, nuclear plant operators will have to maintain an insurance policy, financial security or a combination of both against nuclear damage. The financial security must remain in place until all spent fuel has been removed from the concerned storage pool.
The draft rules also provide for a periodic review of the maximum civil liability of nuclear operators. The Centre will constitute a group of experts once every five years to examine the liability limits applicable to operators for nuclear damage.
Rules For Foreign Reactor Designs
The proposed rules set conditions for nuclear power plants or reactors based on foreign designs. Such designs will have to be certified or approved in the country of origin by its nuclear regulatory authority before they can be considered under the Indian framework.
The draft defines the country of origin as a country with a self-reliant nuclear reactor design and supply-chain ecosystem, whose regulatory approvals are trusted globally. The concerned reactor must also be operational either in the country of origin or another foreign country.
The licensing authority may grant an ‘in-principle approval’ after admitting an application even when the site or technology has not been finalised. This would allow applicants to negotiate with reactor technology vendors and begin acquiring land and other required infrastructure.
The rules also propose a single composite licence covering the construction, ownership, operation and decommissioning of a nuclear power plant or reactor. Separate licences would not be issued for these activities, according to the draft rules.
Source: Business World