Why in news
- The passage of the Shanti Act has opened India's nuclear power generation sector to private developers while addressing long-standing liability concerns.
- The Centre updated regulatory mechanisms under energy laws to mandate nuclear power procurement through statutory purchase obligations.
Key points
- The Shanti Act enables private sector participation in civil nuclear power generation, aiming to help achieve India's target of 100 GW nuclear capacity by 2047.
- The law addresses developer concerns regarding supplier liability limits and accident risks that previously deterred private investment in nuclear projects.
- To ensure market demand and project bankability, nuclear power has been incorporated into renewable consumption obligations under the Energy Conservation Act.
- Power distribution companies are required to execute long-term power purchase agreements with producers, while captive industrial plants offer supplementary off-take avenues.
- High capital costs and competing cheap solar power necessitate fiscal support and long-term tariffs to keep nuclear power economically viable.
Key terms
Renewable Consumption Obligation
A statutory mandate requiring power distribution companies and bulk consumers to procure a minimum percentage of electricity from non-fossil sources.
Power Purchase Agreement
A long-term legal contract between an electricity generator and a purchaser specifying terms for power supply and pricing.
Prelims facts
- Private entry into nuclear energy requires legislative modification to nuclear liability and safety regulation frameworks.
- Energy consumption obligations are notified under the Energy Conservation Act.
Mains discussion
- Analyze the financial and regulatory hurdles hindering private sector entry into India's civil nuclear power sector.
- Examine how integrating nuclear energy into renewable obligations affects discom financial stability and tariff structures.
Source: LiveMint
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2024 · Q7(b) · PSIR GS 2 · 15 marks
Critically examine India's persistent refusal to sign the nuclear non-proliferation treaty (NPT) despite being recognized as a de facto nuclear power. -
2018 · Q16 · GS III · 15 marks
With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (250 Words, 15 Marks). -
2023 · Q4 · GS III · 10 marks
State the objectives and measures of land reforms in India. Discuss how land ceiling policy on landholding can be considered as an effective reform under economic criteria. -
2021 · Q78 · General Studies · 2 marks
With reference to the Union Government, consider the following statements: 1. N. Gopalaswamy Iyenger Committee suggested that a minister and a secretary be designated solely for pursing the subject of administrative reform and promoting it. 2. In 1970, the Department of Personnel was constituted on the recommendation of the Administrative Reforms Commission, 1966, and this was placed under the Prime Minister's charge. Which of the statements given above is/are correct? -
2025 · Q8(a) · PSIR GS 2 · 20 marks
India's reluctance to perceive any 'existential threat' inevitably made the multilateral path to nuclear security a 'default option' until it decided to cross nuclear Rubicon in 1998. Identify and analyze some of the major reasons behind this shift in India's position on the nuclear question