MAINS Current Affairs includes SHANTI Act and the Nuclear Liability Debate in India & India Believed Panchsheel Pact Settled Border with China: CDS

Energy

1. SHANTI Act and the Nuclear Liability Debate in India

Context

The enactment of the SHANTI (Sustainable Harnessing of Advancement of Nuclear Technology for India) Act, 2025 has sparked debate over nuclear safety norms, compensation mechanisms for victims, and India’s broader long-term energy strategy.

Background

Traditionally, nuclear power generation in India has been the exclusive domain of state-owned entities such as the Nuclear Power Corporation of India Ltd (NPCIL) and its subsidiary Bharatiya Nabhikiya Vidyut Nigam (BHAVINI).

The SHANTI Act allows private sector participation in nuclear energy and modifies provisions of the Civil Liability for Nuclear Damage Act (CLNDA), 2010, particularly regarding liability and regulatory oversight.

Key Provisions of the SHANTI Act

1. Reform of Nuclear Liability Framework

• • Liability in case of a nuclear accident is channelled solely to the operator.
  • The earlier “right of recourse” enabling operators to seek compensation from suppliers for defective equipment has been removed.
  • Clause 46 of the CLNDA, which permitted victims to pursue remedies under other laws including criminal provisions, has been omitted.

2. Regulatory Structure

• • Establishes a legislative framework for the Atomic Energy Regulatory Board (AERB).
  • However, the independence of the regulator is questioned as members are appointed through a committee under the Atomic Energy Commission.

3. Exemptions for Limited Activities

• • Certain activities such as research and innovation-related work may be exempted from licensing requirements.

4. Regulation of Non-Power Applications

• • Provides oversight for peaceful uses of nuclear and radiation technologies in sectors like healthcare, agriculture, industry, and research.

Major Concerns

Supplier Indemnification

Shielding suppliers from liability has emerged as a key point of contention. Past global accidents underline risks associated with design flaws and inadequate safeguards:

• Fukushima Daiichi (Japan) exposed weaknesses in containment and disaster preparedness.
• Chernobyl (Ukraine) revealed structural and shutdown system failures.
• Three Mile Island (USA) highlighted design and communication shortcomings.

Moral Hazard

When suppliers are protected from liability, it may reduce incentives to ensure stringent safety standards.

Dilution of Absolute Liability

The Act exempts operators from liability in cases of “grave natural disasters,” deviating from India’s earlier principle of absolute liability for hazardous industries. This may weaken incentives for climate-resilient infrastructure.

Way Forward

• Ensure greater transparency and public participation in site approvals, environmental clearances, and safety audits to strengthen public trust.
• Incorporate higher safety benchmarks to address extreme weather events and climate-related risks.
• Create a well-capitalised nuclear insurance pool with sovereign backing to guarantee timely and adequate compensation to victims in case of accidents.

Conclusion

While the SHANTI Act seeks to expand nuclear energy capacity and attract private investment, it raises critical questions about liability, regulatory independence, and safety standards. Balancing energy security with accountability and public safety will be essential for sustaining confidence in India’s nuclear power programme.

International Relations

2. India Believed Panchsheel Pact Settled Border with China: CDS

Context

The Chief of Defence Staff (CDS) stated that India assumed the 1954 Panchsheel Agreement had effectively addressed the northern boundary issue, though China interpreted the agreement differently.

Panchsheel Agreement (1954)

In 1954, India formally recognised Tibet as a part of China, and both countries signed the Panchsheel Agreement.

The agreement was based on five principles:

1. Mutual respect for territorial integrity and sovereignty
2. Mutual non-aggression
3. Mutual non-interference in internal affairs
4. Equality and mutual benefit
5. Peaceful coexistence

The pact aimed to foster trade and friendly relations and became the foundation of early India–China ties. India believed that this understanding had resolved concerns regarding the northern boundary.

In 2025, the Chinese President reiterated that Panchsheel should be preserved and strengthened, coinciding with efforts by both nations to stabilise relations and the Indian Prime Minister’s visit to China after seven years.

India–China Border Overview

• India considers the Line of Actual Control (LAC) to be about 3,488 km, whereas China estimates it at around 2,000 km. The border is divided into three sectors:

Western Sector (Aksai Chin)

• Claimed by China since the 1962 war and administered as part of Xinjiang; India regards it as part of the former state of Jammu and Kashmir.

Middle Sector

• Relatively less contentious, covering areas in Uttarakhand and Himachal Pradesh, though tensions such as the Doklam standoff have highlighted vulnerabilities.

Eastern Sector (Arunachal Pradesh)

• Demarcated by the McMahon Line. During the 1962 war, Chinese forces advanced significantly before declaring a unilateral ceasefire and withdrawing. China continues to assert claims over Arunachal Pradesh.

India–China Relations

• 2025 marks 75 years of diplomatic relations between India and China.

Historical Strains

• Relations deteriorated after the 1962 war and worsened following the 2020 Galwan Valley clash. India responded by restricting Chinese investments, banning apps, and suspending flights.

Economic Interdependence

• Despite tensions, bilateral trade reached $155.6 billion in 2025, growing by over 12% year-on-year.

Dialogue Mechanisms

• Frameworks such as the Special Representatives (SR) dialogue and the Working Mechanism for Consultation and Coordination (WMCC) continue to address boundary concerns.

Recent Engagements

• 2024: Disengagement announced in eastern Ladakh.
• October 2024: Leaders emphasised mutual trust and respect.
• 2025: Resumption of direct flights and high-level visits, including participation in the SCO summit.

Key Areas of Concern

• Persistent border disputes and military build-up along the LAC.
• China–Pakistan cooperation under the China–Pakistan Economic Corridor, passing through Pakistan-occupied Kashmir.
• India’s large trade deficit and reliance on Chinese imports in electronics, APIs, telecom equipment, and solar components.
• Expanding Chinese footprint in the Indian Ocean Region through projects in Sri Lanka, Nepal, Bangladesh, and Myanmar.

India’s Strategic Response

• Strengthening border infrastructure and military readiness.
• Deepening partnerships through platforms like the Quad and enhancing defence ties with major Indo-Pacific powers.
• Promoting indigenous technology ecosystems and limiting high-risk vendors.
• Expanding maritime security capabilities.
• Diversifying trade and participating in alternative infrastructure initiatives such as the India–Middle East–Europe Economic Corridor.

Way Forward

India must combine vigilant monitoring of border and maritime developments with calibrated diplomacy. Upholding sovereignty and territorial integrity while maintaining strategic autonomy and sustained engagement remains central to managing the complex relationship with China.

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