DAE Mandates Nuclear Plant Insurance Under SHANTI Act, 2025

The Department of Atomic Energy (DAE) has officially released draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025. These new regulations mandate that all nuclear power plants must maintain an insurance policy, other financial security, or a combination of both.

Mandatory Financial Security and Duration

This critical financial security must remain active for an extended period. It is required to stay in effect until all spent fuel has been completely removed from its designated storage pool.

Operator Liability Reviews

The DAE’s draft rules also establish a structured process for evaluating operator liability. A dedicated group of experts will be formed every five years to assess and review the maximum limits of an operator’s financial responsibility in the event of nuclear damage.

Specifics for Foreign-Designed Plants

For nuclear plants or reactors that are based on foreign designs, the draft rules introduce additional stringent requirements. These measures ensure both safety and operational reliability.

• The design of such foreign-designed plants or reactors must be certified or approved by the regulatory body in their country of origin.
• These plants or reactors must already be operational in their country of origin or in another foreign nation before being implemented in India.

Licensing and Approval Process

The licensing authority holds the power to grant in-principle approval once an application is admitted. This approval can be issued once the site or technology for the plant has been chosen.