Draft SHANTI Act Rules Mandate Five-Year Review of Nuclear Liability Caps by Expert Panel

Gist - The Department of Atomic Energy has released draft rules under the newly enacted SHANTI Act , introducing an expert panel to reassess civil nuclear liability caps every five years . - This fundamentally transitions India's nuclear liability framework from a blanket penalty to a tiered, capacity-based model, notably shielding equipment suppliers from long-term legal risks. - Aspirants must understand this policy shift, as it acts as a strategic lever to cap financial hazards and attract private and foreign investment into the domestic nuclear energy sector. Background - Previous Regime : Before the introduction of the SHANTI Act , India managed nuclear liability through the Civil Liability for Nuclear Damage Act, 2010 CLNDA . - Flat Penalty Mechanism : The CLNDA enforced a uniform operator liability ceiling of Rs 1,500 crore , applying an identical financial burden to all nuclear facilities regardless of their actual energy output or physical footprint. - Supplier Accountability : Crucially, Section 17 of the CLNDA granted plant operators an absolute "right of recourse," enabling them to legally pursue equipment suppliers if an accident originated…