Why SHANTI Act's nuclear liability limits are under Supreme Court scrutiny

📌 Summary:

• Supreme Court (CJI Surya Kant, Justices Joymalya Bagchi, Vipul Pancholi) on 19 May 2026 began hearing a constitutional challenge to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act — described by the bench as a "very sensitive legislative policy issue"

• Petition (Prashant Bhushan) argues SHANTI lets private and foreign firms operate nuclear plants while capping operator liability "absurdly low" and exempting suppliers entirely — violating Articles 14, 19 and 21

• SHANTI repealed the Civil Liability for Nuclear Damage (CLND) Act, 2010. The 2010 Act had: (a) a no-fault regime — victims need only prove damage, not negligence; (b) operator cap of Rs 1,500 cr for large reactors; (c) Section 17(b) right of recourse — operators could recover compensation from suppliers for defective equipment

• SHANTI fragments operator liability by reactor size: up to 150 MW → Rs 100 cr; 150–750 MW → Rs 300 cr; only reactors >3,600 MW reach the Rs 3,000 cr ceiling. Centre absorbs residual under Section 14; beyond SDR ceiling, NO claim lies against anyone

• Supplier liability under Section 16 narrowed to two situations only — contractual write-in OR intentional damage. Design defects, manufacturing failures, substandard components NO longer independently trigger supplier accountability. Old Section 17(b) is gone

• Why protections were granted: target of 100 GW nuclear capacity by 2047 needs private + foreign capital; US and French reactor makers had long pressed for supplier-liability removal during the Indo-US civil nuclear deal — SHANTI delivered it

• Constitutional challenge anchored in Shriram Oleum Gas (1987) absolute-liability doctrine — enterprises in hazardous activities are absolutely liable "wholly independent of fault, negligence or due care" — which petitioners say cannot be diluted by statutory caps

🎯 UPSC Relevance: GS3 — Science & Tech (Nuclear policy); GS2 — Polity (Judicial review of legislative policy; Article 21 absolute liability). Centrepiece of India's energy transition vs. constitutional safeguards debate.

📝 Prelims Facts:

• SHANTI Act = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act
• Replaces CLND Act, 2010
• Target: 100 GW nuclear capacity by 2047
• Operator liability ceiling: Rs 100 cr (≤150 MW) to Rs 3,000 cr (>3,600 MW)
• Cited precedent: M.C. Mehta vs Union of India (Shriram Oleum Gas, 1987) — absolute liability
• SDR = Special Drawing Rights (IMF unit) used in CLND Act ceiling

🔑 Key Term: Absolute Liability — doctrine evolved in Shriram Oleum Gas (1987) holding enterprises engaged in inherently dangerous activities strictly and absolutely liable for any harm caused, independent of fault, negligence or due-care exercise — a no-exceptions advance over the Rylands v Fletcher strict-liability rule.