SHANTI Rules: Govt sets nuclear liability framework

The government has unveiled the draft SHANTI Rules, 2026, outlining a comprehensive framework for nuclear operator liability, insurance, and financial security as India aims to broaden its nuclear power generation and private sector involvement in the nuclear sector. Operators of nuclear installations would be held strictly liable for nuclear damage on a no-fault basis, encompassing damage caused during the transport of nuclear material.

Operators are also required to maintain insurable and financial protection against potential nuclear damage, with the security to be irrevocable and valid until all spent fuel is removed from the reactor core. Financial security can be provided by insurance policies, financial securities, or a combination of both, with a security margin of 1:1.33 if using financial instruments.

The proposed rules expand the scope of nuclear applications to include electricity generation, captive power, process heat, hydrogen production, medical isotope production, education, training, and research. The draft also proposes a separate framework for nuclear installations owned by the Central Government, where operators might not require insurance or financial security, with the Central Government assuming liability for damages.

The government plans to review the maximum limits of civil liability for nuclear damage every five years, with an expert group constituted by the Central Government to assess and recommend changes to liability limits and related provisions.