DAE Drafts SHANTI Rules Mandating Nuclear Plant Insurance Cover

The Department of Atomic Energy has published draft rules mandating comprehensive financial security and insurance coverage for nuclear power plants across the country. Under the new draft rules, plant operators must keep valid insurance or financial guarantees continuously active until every piece of spent fuel is fully removed from storage pools. This measure establishes clear liability limits and ensures adequate financial protection against operational mishaps or civil nuclear damage. The government aims to bring legal clarity to liability claims while standardizing safety compliance across all civilian atomic facilities.

The guidelines fall under the proposed SHANTI Act framework, setting stringent operational standards for domestic and foreign suppliers. Under the draft rules, foreign nuclear technology must satisfy strict regulatory approvals, safety protocols, and operational history criteria before deployment in Indian reactors. This requirement addresses long-standing safety concerns and aligns technical standards with global safety frameworks. The regulatory mechanism provides a structured pathway for technology transfer while protecting national security and environmental safety standards.

The implementation of defined insurance rules marks a significant shift for India's clean energy roadmap and public utility sector. Clear financial guidelines lower legislative uncertainties for international vendors and private entities entering nuclear power production. These draft rules create a predictable regulatory environment for funding next-generation reactor construction and expanding nuclear capacity. Stakeholders have been given time to submit feedback before the Ministry of Power and the Department of Atomic Energy finalize the statutory rules.