Nuclear liability caps to get 5-year review under SHANTI Act draft rules

The Department of Atomic Energy has released draft rules under the SHANTI Act, which will establish a review process for nuclear liability caps every five years. The expert group formed for this review will consist of professionals in nuclear science, actuarial science, insurance, law, and public-interest representatives. The goal is to assess and potentially adjust the maximum limits of civil liability for nuclear damage.

The SHANTI Act replaced the previous flat cap of Rs 1,500 crore under the Civil Liability for Nuclear Damage Act, 2010 (CLNDA) with graded limits based on the size of the nuclear installation. The new limits range from Rs 100 crore for reactors up to 150 MWe to Rs 3,000 crore for those exceeding 3,600 MWe. The review mechanism is not entirely new, as Section 6 of the CLNDA allowed for periodic review and potential increase of liability caps.

However, the draft SHANTI Act rules provide a defined time period for the expert group to complete their review and suggest amendments. This development comes in the wake of a Supreme Court case challenging the act for allowing foreign companies, including private sector entities, to operate nuclear power plants in India with a low liability cap.

The court has also questioned whether the SHANTI Act would prevent constitutional courts from determining a fair and just compensation amount in case of a nuclear incident.