Nuclear draft rules set safety norms for private operators: Key safeguards

The draft rules under the SHANTI Act set out financial, licensing, security and waste-management requirements as India opens parts of its nuclear sector to private companies

The Department of Atomic Energy (DAE) on Friday notified draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, laying down the regulatory framework for nuclear power plants and reactors.

 

The rules provide for operator liability, financial protection, nuclear material accounting, radiation safety and radioactive waste management. They also set out conditions for the use of foreign reactor technology and provide for regulatory oversight through the life of a nuclear facility, including its decommissioning.

What do the draft rules propose?

Companies seeking to establish a nuclear power plant will have to apply for a licence and undergo a screening process. An applicant will first need to secure an ‘in-principle approval’ before it can enter into negotiations with reactor technology suppliers or develop the required infrastructure.

   

The approval can be granted even before the applicant has finalised the site or reactor technology.

 

The proposed framework provides for a single composite licence covering the construction, ownership, operation and eventual decommissioning of a nuclear power plant or reactor. This is intended to bring the different stages of a facility's lifecycle under a common regulatory framework.

 

Financial safeguards are also built into the rules. Operators will have to maintain financial capacity until all spent nuclear fuel has been removed from the relevant storage pool. They will also be required to maintain insurance and other financial security against nuclear damage.

 

The Centre will constitute an expert group every five years to review the maximum limits of an operator's civil liability for nuclear damage.

What are the conditions for foreign nuclear technology?

The draft rules prescribe tighter controls over nuclear material and plant security. Operators will have to maintain detailed records, conduct material-balance exercises and verify inventories of nuclear substances.

 

They will also be required to appoint an approved officer responsible for nuclear material accounting and related compliance requirements.

 

The framework proposes multiple layers of physical protection at nuclear facilities, along with restrictions on access to sensitive areas. These measures are intended to reduce the risk of theft, sabotage and unauthorised access.

 

The rules also require protection of digital systems used in nuclear facilities and place restrictions on sensitive nuclear information.

 

Radioactive waste will have to be handled, contained and disposed of in accordance with prescribed regulatory requirements. Operators will remain responsible for meeting the applicable safety and radiation-protection standards.

 

The composite licence would also be subject to regulatory reviews and compliance requirements throughout the plant's operational life.

What are the conditions for foreign nuclear technology?

The draft rules impose specific conditions on foreign-designed reactors and nuclear power plants.

 

A foreign reactor design will have to be certified or approved by the nuclear regulatory authority in its country of origin. In addition, the technology must already be operational either in the country of origin or in another foreign country.

 

The draft defines the country of origin as a country that has an established and self-reliant ecosystem for nuclear reactor design and supply and whose regulatory approvals are considered globally credible.

 

Imported or domestically acquired technology will also have to meet India's requirements on public health and safety. It must not adversely affect India's interests or create an unreasonable risk to people or the environment. The technology will also have to comply with national policies framed under the SHANTI Act.

What is the SHANTI Act?

The SHANTI Act seeks to consolidate India's nuclear-sector laws and create a framework for expanding nuclear power as part of the country's clean-energy transition.

 

A key change is the opening of parts of the nuclear sector to private companies, ending the earlier government-dominated framework for commercial participation. Private players will be able to participate in activities including atomic mineral exploration, fuel fabrication and equipment manufacturing, subject to the regulatory framework.

 

However, the government will retain control over sensitive parts of the nuclear fuel cycle and other strategic activities.

 

The legislation is part of India's longer-term plan to expand nuclear power capacity to 100 GW by 2047, while supporting the country's target of achieving net-zero emissions by 2070.

 

India currently has about 8.78 GW of installed nuclear power capacity. Several indigenous 700 MW and 1,000 MW-class reactors are under development, with the country's nuclear capacity expected to cross 22 GW by 2031-32.