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Draft Rules Set Operator Liability And Safeguards For Private Nuclear Push
ECONOMY & POLICY

Draft Rules Set Operator Liability And Safeguards For Private Nuclear Push

As the government moves to operationalise the Sustainable Harnessing and Advancement of Nuclear Energy Act, 2025 (SHANTI Act), it has published draft rules to open the strategically critical nuclear power sector to greater private participation. The Department of Atomic Energy (DAE) released the rules to establish a clearer framework for operator liability, financial protection and the deployment of foreign reactor technology while retaining long term regulatory oversight.

The draft rules require plant operators to maintain an insurance policy, financial security or a combination of both to cover nuclear damage and specify that such protection must remain until all spent fuel is removed from the relevant storage pool. This extends operator obligations beyond the operational phase and is intended to safeguard against potential nuclear damage as private capital and expertise enter the sector.

The Centre will constitute once in every five years a group of experts to review the maximum limits of an operator’s civil liability for nuclear damage. For reactors based on foreign designs, the design must be certified or approved by the regulatory authority in the country of origin, which the drafts define as a state that is self reliant in reactor design and supply chain and whose regulatory approvals are trusted globally.

The draft introduces an in principle approval mechanism that would allow prospective developers to begin key preparations before site selection or reactor technology is finalised. The licensing authority may grant such approval after admitting an application, enabling applicants to negotiate with reactor technology vendors and to acquire land and necessary infrastructure at an earlier stage to reduce project lead times.

The government has proposed a single composite licence covering the entire lifecycle of a nuclear power plant or reactor, from construction and ownership to operation and decommissioning, with no licence to be sought for those activities separately. The measure is framed to provide regulatory clarity while the Centre retains oversight of safety, liability and long term decommissioning responsibilities.

As the government moves to operationalise the Sustainable Harnessing and Advancement of Nuclear Energy Act, 2025 (SHANTI Act), it has published draft rules to open the strategically critical nuclear power sector to greater private participation. The Department of Atomic Energy (DAE) released the rules to establish a clearer framework for operator liability, financial protection and the deployment of foreign reactor technology while retaining long term regulatory oversight. The draft rules require plant operators to maintain an insurance policy, financial security or a combination of both to cover nuclear damage and specify that such protection must remain until all spent fuel is removed from the relevant storage pool. This extends operator obligations beyond the operational phase and is intended to safeguard against potential nuclear damage as private capital and expertise enter the sector. The Centre will constitute once in every five years a group of experts to review the maximum limits of an operator’s civil liability for nuclear damage. For reactors based on foreign designs, the design must be certified or approved by the regulatory authority in the country of origin, which the drafts define as a state that is self reliant in reactor design and supply chain and whose regulatory approvals are trusted globally. The draft introduces an in principle approval mechanism that would allow prospective developers to begin key preparations before site selection or reactor technology is finalised. The licensing authority may grant such approval after admitting an application, enabling applicants to negotiate with reactor technology vendors and to acquire land and necessary infrastructure at an earlier stage to reduce project lead times. The government has proposed a single composite licence covering the entire lifecycle of a nuclear power plant or reactor, from construction and ownership to operation and decommissioning, with no licence to be sought for those activities separately. The measure is framed to provide regulatory clarity while the Centre retains oversight of safety, liability and long term decommissioning responsibilities.

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