India has released the draft rules detailing the approvals and arrangements that the nuclear plant operators need to maintain. These include an insurance cover, financial security or a combination of both for nuclear damage.
The draft rules of the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025 were issued by the Department of Atomic Energy on 14 August 2026. The framework aims to tighten safeguards while streamlining nuclear power project clearances.
Nuclear power developers would be required to maintain financial security for nuclear liability, decommissioning and waste-management obligations, and submit plans for management of radioactive waste. Changes to the nuclear energy act included capping liability of nuclear equipment suppliers in accidents. This had been a longstanding concern.
Moreover, the draft rules highlight that the licencing authority may grant “in-principle approval” after admitting an application, where the site or technology has not been selected.
The draft rules state that the financial security and cover must remain in place until all spent fuel has been removed from the concerned storage pool. According to the draft rules, the Central government must, once every five years, constitute a group of experts to review the maximum limits of an operator’s civil liability for nuclear damage.
Another important provision of the draft rules speaks about a nuclear power plant or reactor based on a foreign design, to ensure that its design is certified or approved in the country of origin by its regulatory body. Country of origin means those countries that are self-reliant in nuclear reactor design and supply-chain ecosystem, and whose regulatory approvals are trusted globally. The draft rules say such a nuclear power plant or reactor should also be operational either in the country of origin or any other foreign country.
Earlier in July this year Minister of State in the Prime Minister’s Office Mr Jitendra Singh speaking in the Indian Parliament on civil liability for nuclear damage had informed that the SHANTI Act provides that the maximum operator liability for each nuclear incident will vary depending on the category of the nuclear installation, ranging from INR1000m ($10.4m) to INR30,000m.