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Home News SHANTI Act India: DAE and Power Ministry Clash Over Private Nuclear Projects

SHANTI Act India: DAE and Power Ministry Clash Over Private Nuclear Projects

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Now a significant jurisdictional dispute is emerging within the Indian government. The Department of Atomic Energy (DAE) and the Ministry of Power are at odds over the supervision of civil nuclear projects. This tension follows the passage of the landmark SHANTI Act. Therefore, officials must decide who will manage the influx of private participation in this strategic sector. Meanwhile, the goal remains a massive expansion of nuclear capacity by 2047.

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The Jurisdictional Divide: DAE vs. Power Ministry

Now the government faces two divergent views on nuclear administration. Currently, the DAE holds full control under the Prime Minister’s Office. Therefore, it manages all matters related to atomic energy and power generation.

First, an emerging view suggests the Ministry of Power should oversee new private projects. Next, legacy projects would remain under the DAE. Thus, the administration would be split based on the nature of the player involved.

So the debate centers on the efficiency of supervision. Meanwhile, the Ministry of Power already manages massive public and private energy portfolios. Therefore, some believe they are better equipped for commercial scaling.

Understanding the SHANTI Act and Private Entry

Now the SHANTI Act has fundamentally changed the nuclear sector. Passed in December 2025, it paved the way for private companies to build and operate plants. Therefore, the sector is no longer an exclusive state monopoly.

First, the act omitted a key liability clause. This previously exposed vendors to long-term risks after accidents. Next, the removal of this barrier has encouraged global and local investment. Thus, the private sector is now eager to participate.

So the act still retains central control over sensitive activities. Meanwhile, isotopic separation and waste management stay with the government. Therefore, the state remains the ultimate guardian of nuclear material.

Conflict of Interest Concerns in the Supply Chain

Now critics point to a potential conflict of interest within the DAE. The department currently controls the entire supply chain. Therefore, it handles research, fuel supply, and spent fuel management simultaneously.

First, the view to shift administration to the Power Ministry stems from this concern. Next, having the developer and the supervisor under one roof can be problematic. Thus, a separate oversight body is being requested for private projects.

So the CAG highlighted these issues as far back as 2012. Meanwhile, the government is trying to modernize the administrative structure. Therefore, the push for the Ministry of Power’s involvement is gaining traction.

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The Role of AERB: From Dependency to Autonomy

Now the Atomic Energy Regulatory Board (AERB) is seeing a major upgrade. Previously, it depended on the DAE for its budget and administration. Therefore, its independence was often questioned by international observers.

First, the SHANTI Act has finally accorded the AERB statutory status. Next, this allows the board to regulate both NPCIL and private players with more authority. Thus, the regulatory framework is becoming more robust.

So the AERB chairperson is no longer subordinated to the Atomic Energy Commission chair. Meanwhile, this change addresses the 2012 CAG concerns. Therefore, the regulatory path is clearing for private entry.

Technical Expertise: PHWR vs. LWR and PWR

Now technology types might decide the administrative split. The DAE has deep expertise in Pressurised Heavy Water Reactors (PHWRs). Therefore, they will likely retain control over these legacy systems.

First, private players often prefer imported technologies. These include Light Water Reactors (LWR) or Pressurised Water Reactors (PWR). Next, these could fall under the Ministry of Power’s supervision. Thus, the split would be based on technical know-how.

So a senior DAE official insists that nuclear power is not like thermal power. Meanwhile, they argue that institutional knowledge is essential for safety. Therefore, the DAE is hesitant to cede total control.

India’s 100 GW Roadmap by 2047

Now the scale of India’s ambition is massive. The country aims to reach 100 GW of nuclear power by 2047. Currently, capacity stands at only 8.7 GWe. Therefore, the growth rate must increase drastically.

First, the NPCIL will develop about half of this new capacity. Next, NTPC is expected to handle around 30 percent. Thus, the remaining portion is open for private developers.

So the year 2025-26 has already seen some progress. Meanwhile, 6,600 MWe of capacity is currently under construction. Therefore, the 2031-32 targets remain within sight if the administrative row is resolved.

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Liability Clauses and Safety Safeguards

Now safety remains the top priority in the SHANTI Act. While liability for vendors was eased, the central government keeps a tight grip on waste. Therefore, high-level radioactive waste management remains a state duty.

First, the act ensures that enrichment stays under exclusive central control. Next, upgrading heavy water is also a government-only activity. Thus, the most sensitive parts of the fuel cycle are protected.

So the act balances commercial ease with national security. Meanwhile, private players must adhere to the same safety standards as NPCIL. Therefore, the risk profile remains strictly managed.

FAQ: The Future of India’s Nuclear Supervision

1. What is the SHANTI Act of 2025? Now it is the law that allows private companies to enter India’s civil nuclear sector.

2. Why is there a dispute between DAE and the Power Ministry? First, they disagree on who should supervise private projects. Therefore, it is a battle over jurisdictional control.

3. What is India’s nuclear power target? So India aims to achieve 100 GW of capacity by the year 2047.

4. How did the AERB change under the new act? Next, it was given statutory status. Thus, it is now more independent from the DAE.

5. Which technology will the DAE likely keep? Now the DAE will likely supervise PHWR technology. Meanwhile, private LWR projects might go to the Power Ministry.

6. Is the private sector allowed to enrich uranium? No. Finally, the central government retains exclusive control over enrichment and waste management.

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End…

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