SUPREME COURT HEARS CHALLENGE TO SHANTI ACT, 2025

Why in the News?

●  Legal Challenge: The Supreme Court of India heard a petition challenging the SHANTI Act, 2025, raising concerns about environmental jurisprudence and regulatory safeguards.

●  Liability Concern: Petitioners argued that the Act fixes nuclear accident liability at an “absurdly low” level of below ₹4,000 crore, potentially undermining the polluter pays principle.

●  Private Participation: The law permits private and foreign corporations to operate nuclear power plants in India, subject to environmental clearances and regulatory compliance.

ABOUT SHANTI ACT, 2025

●  Full Form: SHANTI stands for Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India.

●  Sector Opening: The Act allows private and foreign participation in India’s nuclear energy sector, requiring comprehensive environmental impact assessment and environmental clearance procedures.

●  Liability Cap: It fixes a financial cap on compensation liability in case of a nuclear accident, raising questions about adherence to the precautionary principle in environmental democracy.

●  Investment Objective: The legislation seeks to attract investment into the nuclear power sector while ensuring compliance with EIA notification requirements.

●  Energy Security: The Act aims to expand India’s clean energy capacity through nuclear power generation, contributing to a pollution free environment and sustainable development goals.

NUCLEAR LIABILITY FRAMEWORK IN INDIA

●  Civil Liability Principle: Operators of nuclear plants are financially responsible for damage caused by accidents, reflecting the polluter pays principle established in environmental jurisprudence.

●  Compensation Mechanism: Liability laws ensure victims receive compensation after nuclear disasters, similar to frameworks under the Forest Conservation Act and coastal regulation zone regulations.

●  Supplier Liability Debate: The petition challenges exemption of suppliers from direct liability obligations, arguing against any ex post facto or retrospective environmental clearances that may weaken accountability.

●  International Context: Many countries maintain liability caps to encourage private nuclear investments while ensuring environmental impact assessment protocols are followed.

●  Safety Concerns: Critics argue low compensation limits may weaken accountability and disaster preparedness, citing precedents like the Vanashakti judgment that emphasized the precautionary principle and rejected ex-post facto clearances.

NUCLEAR ENERGY IN INDIA ●  Clean Energy Source: Nuclear power provides low-carbon electricity and supports climate commitments, contributing to a pollution free environment. ●  Strategic Importance: It reduces dependence on imported fossil fuels and strengthens energy security through proper environmental clearance mechanisms. ●  Key Institutions: Department of Atomic Energy oversees nuclear energy development in India, coordinating with environmental authorities for necessary clearances. ●  Major Challenges: High costs, radioactive waste management, and safety concerns remain critical issues, requiring stringent environmental impact assessment and adherence to environmental democracy principles. ●  UPSC Syllabus: GS-III — Infrastructure: Energy; Science and Technology- developments and their applications.