India Draft SHANTI Rules Nuclear Liability

The India — India, through the India — Department of Atomic Energy, released the draft SHANTI Rules, 2026, on August 17, 2026. These rules operationalize the SHANTI Act, 2025, which opens India's nuclear power sector to greater private participation. The draft establishes strict no-fault liability for nuclear operators, requiring them to maintain insurance or financial security to cover potential nuclear damage. Financial security must be irrevocable and remain in force until spent fuel is removed from storage pools. Operators using shares or bonds as security must pledge them to the Central Government and maintain a 1:1.33 security margin. The rules expand nuclear applications to include hydrogen production, medical isotopes, and power for data centers and AI technologies. Licensed facilities must arrange finances for the full lifecycle, including decommissioning and waste management. Central government-owned installations may be exempt from insurance requirements, with the government assuming liability. Liability limits will be reviewed every five years by an expert group. The framework aims to attract private capital while ensuring financial safeguards.