1 week ago
SHANTI Rules Seek to Boost India’s Nuclear Investment
India has proposed new rules for its nuclear power industry.
The rules are part of the SHANTI Act.
Nuclear plant operators would need insurance or other money set aside to pay for possible damage.
This protection must last until spent fuel is removed from storage.
Reactors designed in other countries would need approval and operating experience abroad.
One licence could cover a plant’s entire life, from construction to shutdown.
Supporters say this could make it easier for private companies to invest.
Other experts say it is still unclear how much nuclear electricity will cost and how quickly plants can be built.
Draft SHANTI rules require operators to maintain insurance or financial security for nuclear damage.
Financial protection must continue until all spent fuel is removed from storage pools.
Foreign-designed reactors must be approved and operational in their country of origin or another country.
A single lifecycle licence would cover construction, ownership, operation and decommissioning.
Experts welcomed the framework but said tariffs, costs, build speed and lender protection remain unresolved.
- Who
- The Department of Atomic Energy, nuclear plant operators, potential investors and independent experts are involved.
- What
- India announced draft rules under the SHANTI Act covering nuclear liability, licensing, foreign-designed reactors and investment procedures.
- Where
- The rules apply to nuclear installations and related activities in India, including certain transport involving Indian-registered ships or aircraft.
- When
- The draft rules were announced; the Centre would review maximum operator liability limits every five years.
- Why
- They are intended to create a clearer framework for nuclear investment and support India’s goal of reaching 100 gigawatts of nuclear capacity.
Supporters of the framework
Experts highlighting unresolved issues
Investment clarity
Supporters of the framework
Supporters say pre-licensing consultation and in-principle approval can give investors clarity before they make major financial commitments.
Experts highlighting unresolved issues
Critics note that important commercial details, including tariff methodology, levy rates and lender protection, have not been settled.
Lifecycle planning
Supporters of the framework
Supporters welcome one licence for construction through decommissioning and the inclusion of spent-fuel and decommissioning costs in tariffs.
Experts highlighting unresolved issues
Skeptics say the rules do not yet establish what will determine nuclear power’s final cost or how quickly projects can be built.
Nuclear expansion
Supporters of the framework
Supporters argue nuclear power could provide firm, low-carbon capacity for a grid with substantial solar power.
Experts highlighting unresolved issues
The remaining question is whether projects can deliver electricity at a price the system can afford.
Key facts
- Financial protection
- Operators must maintain insurance, financial security or a combination of both for civil liability from nuclear damage.
- Duration of protection
- Financial security must remain in place until all spent fuel is removed from the relevant storage pool.
- Foreign reactors
- Foreign-designed plants or reactors must be approved by the regulatory authority in their country of origin and be operational there or in another foreign country.
- Lifecycle licence
- A single composite licence would cover building, owning, operating and decommissioning a nuclear plant or reactor.
- Liability standard
- Operators would be liable on a no-fault basis for nuclear damage, including damage during nuclear-material transport.
- Review period
- A central expert group would review the maximum limits of an operator’s civil liability every five years.
- National target
- India aims to achieve 100 gigawatts of nuclear power capacity and begin five new reactors this decade.
Quotes
Anujesh Dwivedi
Partner at Deloitte India
“The provisions relating to pre-licensing consultation and in-principle approval prior to finalisation of technology and site will provide a well-structured mechanism for processing of potential license applications from interested investors.”
rediff.com
“Tariff methodology, levy rates and lender protection are yet to be settled. Nuclear can supply firm, low-carbon capacity for a solar-heavy grid. Whether these rules deliver it at a price the system will pay remains an open question.”
rediff.com
Sources
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