India proposes SHANTI Rules 2026 for nuclear sector liability

The Department of Atomic Energy (DAE) has released the draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Rules, 2026. The proposed framework aims to expand nuclear power generation and increase private sector participation in the industry.

A central feature of the draft is the establishment of a strict, no-fault liability regime for nuclear operators. This liability covers any nuclear damage, including incidents occurring during the carriage of nuclear material. To manage these risks, operators must maintain insurance, financial security, or a combination of both. If financial instruments such as bonds or shares are used as security, they must be pledged to the Central Government with a maintained security margin of 1:1.33.

Financial protections must remain irrevocable and valid until all spent fuel is removed from storage pools following its removal from the reactor core. The rules also mandate that operators provide financial arrangements for decommissioning, site remediation, and radioactive waste management.

The scope of the rules extends beyond electricity generation to include captive power, process heat, hydrogen production, and medical isotopes. Proposed applications also target hard-to-abate industries and emerging technologies such as data centers, semiconductor manufacturing, and quantum computing. Certain Central Government-owned installations may be exempt from these insurance requirements, with the government assuming liability for attributable damages.