Nuke Plant Operators Must Have Insurance Cover

The Department of Atomic Energy has released draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025, which mandate insurance cover for nuclear plant operators. The rules require operators to maintain an insurance policy, financial security, or a combination of both to cover nuclear damage.

The financial security must remain in place until all spent fuel is removed from the storage pool concerned. This provision aims to ensure that operators have sufficient financial resources to address any potential nuclear damage.

The draft rules also set out provisions on civil liability, with the Centre required to constitute a group of experts to review the maximum limits of an operator's civil liability for nuclear damage every five years. This review will help ensure that the liability limits remain adequate and effective.

For foreign-designed reactors, the draft rules require certification or approval from the regulatory body in the country of origin. The country of origin is defined as countries that are self-reliant in nuclear reactor design and supply-chain ecosystem, with regulatory approvals trusted globally. The reactor must also be operational in the country of origin or another foreign country.

The licensing authority may grant 'in-principle approval' after admitting an application, even if the site or technology has not been selected. This approval allows the applicant to proceed with negotiations with reactor technology vendors and acquire the necessary land and infrastructure.

The draft rules also introduce a single composite licence that authorises the building, owning, operating, and decommissioning of a nuclear power plant or reactor. This licence aims to streamline the licensing process and reduce regulatory complexity.

## Why it matters The draft SHANTI rules aim to tighten safeguards and streamline nuclear power project clearances in India. The introduction of insurance cover and financial security requirements will help ensure that operators are prepared to address potential nuclear damage. The rules also provide a framework for civil liability, licensing, and foreign reactor approvals, which will help promote the safe and responsible development of nuclear energy in the country.

The public consultation on the draft rules is open until September 4, allowing stakeholders to provide feedback and input on the proposed regulations. The Central Government will also fix the tariff for the supply of electricity from nuclear power plants, which will help ensure that nuclear energy is economically viable and competitive with other forms of energy production.