Draft SHANTI Rules set operator liability, financial safeguards for private nuclear push

New Delhi [India], August 17 (ANI): The government has released the draft SHANTI Rules, 2026, proposing a clear framework for operator liability, insurance and financial security for nuclear installations as it moves to expand nuclear power generation and widen private participation in the sector.

Under the draft rules, operators of nuclear installations would be strictly liable for nuclear damage on a no-fault basis. The rules state, "The liability of the operator of a nuclear installation for any nuclear damage, including that during the course of carriage of nuclear material, shall be strict and shall be based on the principle of no-fault liability."

The draft rules also require operators to maintain financial protection against possible nuclear damage. Rule 77 states that "The operator shall take out an insurance policy or financial security or a combination of both" in accordance with the Act.

The financial security would have to remain valid for an extended period. The draft states that "the financial security shall be irrevocable" and would continue until all spent fuel is removed from the spent fuel storage pool after being taken out of the reactor core.

The rules also provide safeguards when shares, bonds or other financial instruments are used as security. These instruments would be pledged to the Central Government, while a security margin of 1:1.33 would have to be maintained. Operators would also be required to immediately cover any shortfall through additional insurance or financial security.

The proposed liability framework comes alongside provisions for a wider range of nuclear applications. These include electricity generation, captive power, process heat, hydrogen production, medical isotope production, education, training and research.

The draft also proposes nuclear captive power for hard-to-abate sectors and applications such as data centres, quantum technologies, high-performance computing, semiconductor manufacturing and AI-enabled technologies.

For nuclear facilities requiring a licence, the rules would require financial arrangements for civil liability, operating costs, spent fuel and radioactive waste management, as well as decommissioning and site remediation.

The draft provides a separate framework for nuclear installations owned by the Central Government. In specified cases, such operators would not have to obtain insurance or other financial security, with the Central Government assuming liability for damages attributable to the operator.

The rules also propose a periodic review of operator liability limits. An expert group would be constituted by the Central Government every five years to review the maximum limits of civil liability for nuclear damage. The group would include experts in nuclear science and engineering, actuarial science, insurance and law, along with public interest representatives, and could recommend amendments where required.

The proposed framework, therefore, combines wider use of nuclear technology with mandatory financial protection and a defined liability regime, providing a regulatory and financial framework for greater participation in India's nuclear sector. (ANI)