DAE mandates insurance cover for nuclear operators

The Department of Atomic Energy (DAE) has said that the nuclear plant operators need to maintain an insurance policy, financial security or a combination of both for nuclear damage, according to the draft rules of the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025.

The draft rules released by the DAE also state that the financial security must remain in place until all spent fuel has been removed from the concerned storage pool. According to the draft rules, the Centre must, once every five years, constitute a group of experts to review the maximum limits of an operator’s civil liability for nuclear damage.

Another key provision is that if a nuclear power plant or reactor is of foreign design, its design should be certified or approved in the country of origin by its regulatory body. Country of origin here means those countries that are self-reliant in nuclear reactor design and supply-chain ecosystem, whose regulatory approvals are trusted globally, according to the draft rules.

The draft rules say such a nuclear power plant or reactor should also be operational either in the country of origin or any other foreign country.

Moreover, the draft rules highlight that the licencing authority may grant “in-principle approval” after admitting an application, where the site or technology has not been selected.

“Upon receipt of a valid ‘in-principle approval’, the applicant may proceed with negotiation with reactor technology vendors and for acquiring the land and other necessary infrastructure,” the draft rules say.

They also mention that there will be a single composite licence authorising the building, owning, operating and decommissioning of the nuclear power plant or reactor. “No licence shall be applied for, granted, divided, or severed ... in respect of any of those activities separately,” the draft rules say.