New Delhi, Feb 27 The Supreme Court has agreed to hear a petition challenging several provisions of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, arguing that the core issue is a conflict between national interest and a hypothetical loss.
A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi described the matter as "extremely sensitive" requiring detailed consideration and requested the petitioners to submit comparative regulatory frameworks from other countries.
Advocate Prashant Bhushan, representing a group of petitioners including professors and scientists led by former bureaucrat EAS Sarma, argued that the 2025 Act violates fundamental rights under Articles 14, 19, and 21 of the Constitution.
He and advocate Neha Rathi argued that the Act, which replaced the 2010 Civil Liability for Nuclear Damage Act, allows private companies to operate nuclear power plants but exempts them from liability up to ₹3000 crore. They also cited the Chernobyl and Fukushima nuclear accidents, highlighting the significant financial losses incurred.
Bhushan stated that the Act contradicts the Supreme Court's principle of absolute liability for hazardous industries established in the 1987 Oleum gas leak case.
Chief Justice Kant stated that the central dispute is between a real, tangible, and visible national interest versus a hypothetical loss.
He further emphasized that India lacks sufficient energy resources, and a balance must be struck between development and adequate safeguards for these industries.
Justice Bagchi commented, "We don't allow coal-based power plants or forests. We cannot compromise on gas. Where are we going?"
Bhushan suggested that solar energy is the answer, as the cost of producing nuclear energy is four times higher than that of solar energy.
Justice Bagchi noted that for solar energy, India needs lithium, which it will have to rely on China for.
Bhushan countered that there is a misconception that electricity production in the country is low.
Chief Justice Kant pointed out that many states are now providing power subsidies, which is affecting the interests of private companies.
The Supreme Court stated that while the issue requires detailed consideration, it would like to review the case details.
The petition, filed through Bhushan, seeks to enforce fundamental rights and overturn certain provisions of the SHANTI Act, 2025, arguing that these provisions violate Articles 14, 19, and 21 of the Constitution, as well as the principles of absolute liability, the polluter pays principle, the doctrine of public trust, inter-generational equity, and sustainable development – principles that the court has recognized as intrinsic to the right to life guaranteed under Article 21 of the Constitution.
The SHANTI Act, 2025, recently implemented, allows private sector and foreign companies to operate nuclear power plants in India, but also caps the liability of these operators at a very low level and exempts suppliers from liability.
The petition further states that the repealed Civil Liability for Nuclear Damage Act, 2010, explicitly grants operators the right to seek recourse against suppliers.
"Section 13 of the Act further caps the government's residual liability at 300 million special drawing rights, which is an extremely low figure and effectively prevents victims from recovering even a small fraction of their actual losses," the petition states.
The PIL cites the Chernobyl nuclear disaster in the former Soviet Union as an example, highlighting the immense damage to life and property.
"The estimated losses from the Chernobyl disaster range from USD 235 billion to USD 700 billion. Furthermore, an area of over 4000 square kilometers was designated as the Chernobyl Exclusion Zone, rendering the entire region uninhabitable for decades, forcing millions of people to relocate," the petition states.
It also cites the Fukushima Daiichi Nuclear Power Plant accident in Japan in 2011, which caused significant socio-economic impacts on lives and livelihoods.
"In contrast, the SHANTI Act, 2025, caps the liability of the largest plant operator in India at a mere ₹3000 crore (approximately USD 331 million, or less than 0.1% of the cost of damage caused by the Chernobyl or Fukushima accidents)," the petition states.
It further argues that the exemption of suppliers from liability under the SHANTI Act encourages manufacturers and suppliers to cut corners on safety to maximize profits, thereby jeopardizing the lives and livelihoods of people. This is particularly concerning because under the SHANTI Act, 2025, operators can be profit-driven private and foreign companies.