Draft SHANTI Rules 2026: Government proposes nuclear liability, insurance framework for operators

The government has released the draft SHANTI Rules, 2026, proposing a detailed framework for nuclear operator liability, insurance and financial security as India looks to expand nuclear power generation and increase private participation in the nuclear sector.

Under the proposed rules, operators of nuclear installations would be strictly liable for nuclear damage on a no-fault basis. The draft states that the operator's liability would cover nuclear damage caused during the carriage of nuclear material as well.

Also Read: SHANTI Draft Rules and Regulations: Single licence regime and technology from self-reliant countries proposed


Nuclear operators to maintain insurance, financial security

The draft SHANTI Rules require nuclear operators to maintain financial protection against potential nuclear damage. Rule 77 states that an operator must take out an insurance policy, financial security or a combination of both, in accordance with the Act.

The financial security would also have to remain valid for an extended period. According to the draft, the security would be irrevocable and remain in force until all spent fuel is removed from the spent fuel storage pool after being taken out of the reactor core.

The proposed rules also lay down safeguards where shares, bonds or other financial instruments are used as financial security. Such instruments would be pledged to the Central Government, while a security margin of 1:1.33 would have to be maintained.

If there is any shortfall in the required financial security, the operator would have to immediately cover it through additional insurance or financial security.

Draft SHANTI Rules expand scope of nuclear applications

The proposed liability and financial security framework comes as the government seeks to widen the use of nuclear technology beyond conventional electricity generation.

The draft rules cover applications including electricity generation, captive power, process heat, hydrogen production, medical isotope production, education, training and research.

Also Read: Department of Atomic Energy releases draft rules of SHANTI Act

The rules also propose nuclear captive power for hard-to-abate industries and emerging applications such as data centres, quantum technologies, high-performance computing, semiconductor manufacturing and AI-enabled technologies.

Nuclear facilities to plan for waste management, decommissioning

For nuclear facilities requiring a licence, the draft rules would require operators to make financial arrangements covering civil liability, operating costs, spent fuel and radioactive waste management, decommissioning and site remediation.

This would create a broader financial framework for the entire lifecycle of nuclear installations, from operations and waste management to eventual decommissioning.

Central government-owned nuclear installations

The draft SHANTI Rules also propose a separate framework for nuclear installations owned by the Central Government.

In specified cases, operators of such installations would not be required to obtain insurance or other financial security. Instead, the Central Government would assume liability for damages attributable to the operator.

Nuclear liability limits to be reviewed every five years

The government has also proposed a periodic review of the maximum limits of civil liability for nuclear damage.

Under the draft rules, an expert group would be constituted by the Central Government every five years to review operator liability limits. The group would include experts in nuclear science and engineering, actuarial science, insurance and law, as well as public interest representatives.

The group could recommend changes to the liability limits and related provisions where required.

Overall, the draft SHANTI Rules 2026 seek to combine the expansion of nuclear power and wider use of nuclear technology with mandatory insurance and financial protection, while establishing a defined nuclear liability framework for operators. The proposed rules are aimed at providing greater regulatory clarity as India opens up its nuclear sector to broader participation.