Draft SHANTI Rules, 2026: Strengthening the Framework for India’s Expanding Nuclear Sector

Draft SHANTI Rules, 2026: Strengthening the Framework for India’s Expanding Nuclear Sector

India is expanding the role of nuclear technology in its long-term energy strategy, while also exploring its wider applications in healthcare, industry and emerging technology sectors. In this context, the Government has released the draft SHANTI Rules, 2026, aimed at operationalising the SHANTI Act, 2025 and providing a regulatory framework for nuclear operator liability, financial protection and related responsibilities.

The proposed rules come as India works towards its long-term target of 100 GW of nuclear power capacity by 2047 and considers greater participation of private industry in the nuclear sector. The framework also reflects the growing range of applications of nuclear technology beyond electricity generation.

Technology Applications Beyond Power

The draft rules envisage nuclear technology for a wider set of applications, including:

  1. Captive nuclear power and process heat for hard-to-abate industries

  2. Hydrogen production

  3. Production and use of medical isotopes

  4. Nuclear-related education, training and research

 5. Applications supporting data centres, semiconductor manufacturing, quantum technologies, high-performance computing and AI-enabled technologies

India is also pursuing indigenous nuclear technologies, including Pressurised Heavy Water Reactors (PHWRs) and Small Modular Reactors (SMRs), while nuclear applications continue to support healthcare, agriculture, food preservation, industry and scientific research.

Strengthening Financial and Lifecycle Responsibility

A central feature of the proposed rules is the requirement for nuclear installation operators to maintain adequate financial protection. Operators would be required to maintain insurance, financial security, or a combination of both against nuclear damage. The proposed security would remain in place through the relevant lifecycle of the facility, including the management of spent fuel.

The framework also brings a lifecycle perspective to financial planning. Licensed facilities would need arrangements covering civil liability, operating costs, spent-fuel and radioactive-waste management, decommissioning and site remediation.

The proposed rules provide for strict and no-fault liability of operators for nuclear damage, including damage associated with the carriage of nuclear material. Specified Central Government-owned installations may be treated separately, with the Central Government assuming liability for attributable damages.

Supporting a Responsible Nuclear Expansion

As nuclear technology expands into new areas and private participation increases, maintaining high standards of nuclear safety, security, emergency preparedness and environmental protection remains essential. The proposed framework also provides for periodic review of maximum civil-liability limits by an expert group drawing on expertise in nuclear science, engineering, actuarial science, insurance, law and public interest.

The SHANTI Act, 2025 provides the statutory foundation for the next phase of India's nuclear programme, including licensing, civil nuclear liability, financial security and wider participation in nuclear power generation. At the same time, sensitive activities such as uranium enrichment, spent-fuel reprocessing, high-level waste management and heavy-water production remain under Central Government control.

The draft SHANTI Rules, 2026 therefore form part of a broader effort to create a regulatory and financial framework for the expansion of India's nuclear sector. Their implementation will need to balance technological development and investment with safety, environmental protection, long-term waste management and public interest, as India builds greater nuclear capacity and explores new applications of nuclear science and technology.

Resources:

https://www.nextias.com/ca/current-affairs/19-08-2026/draft-shanti-rules-2026

http://drishtiias.com/current-affairs-news-analysis-editorials/news-analysis/19-08-2026

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