The government has tabled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 in the Lok Sabha, marking the most significant overhaul of India’s civil nuclear framework in decades. The proposed law aims to end the long-standing state monopoly on nuclear power generation and open the sector to regulated private participation.
If enacted, the SHANTI Bill 2025 will repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. Both laws have long been viewed by domestic industry players and foreign partners as major barriers to investment in India’s nuclear energy sector.
Background: Why the SHANTI Bill 2025 Was Needed
Since independence, India’s nuclear programme has been tightly controlled by the state due to strategic, security, and technological considerations. The Nuclear Power Corporation of India Limited (NPCIL) has remained the primary operator of nuclear power plants, with limited scope for external participation.
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While this model ensured sovereign control, it also slowed capacity expansion. Despite rising electricity demand and climate commitments, nuclear energy contributes only a small share to India’s total power generation. Policymakers increasingly recognised that achieving long-term clean energy goals would require fresh capital, innovation, and operational efficiency.
The SHANTI Bill 2025 reflects this shift in thinking. It seeks to modernise India’s nuclear laws while maintaining strong safety and regulatory oversight.
What Does the SHANTI Bill 2025 Propose?
A central feature of the SHANTI Bill 2025 is the permission for Indian private companies to participate in nuclear power generation. Eligible companies incorporated in India can apply for licences to build, own, operate, and decommission nuclear power plants and reactors.
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This marks a departure from the earlier framework, under which such activities were largely restricted to NPCIL and joint ventures involving state-owned enterprises.
The Bill also introduces major reforms to India’s nuclear liability regime. Liability for a nuclear incident will rest with the plant operator, while equipment suppliers are explicitly exempted. This provision addresses a key concern that had discouraged foreign nuclear vendors from entering the Indian market.
Under the proposed law, the maximum liability for each nuclear incident is capped at the rupee equivalent of 300 million Special Drawing Rights (SDRs), in line with international standards. Operators must maintain insurance or liability funds ranging from roughly USD 11 million to USD 330 million, depending on reactor capacity.
If damages exceed these limits, a separate nuclear liability fund will be activated, with the government stepping in to cover additional claims.
The SHANTI Bill 2025 also allows private Indian firms to engage in nuclear-related activities such as fabrication of nuclear fuel, transportation and storage of nuclear and spent fuel, and the import or export of approved nuclear equipment and technology.
However, companies incorporated outside India or controlled by foreign entities will not be permitted to hold licences. Sensitive activities, including fuel enrichment, spent-fuel reprocessing, and heavy water production, will remain under exclusive government control.
Why the SHANTI Bill 2025 Is Significant
The Bill is closely linked to India’s climate commitments, including the target of achieving net-zero emissions by 2070. The government has also set an ambitious goal of expanding nuclear power capacity to 100 gigawatts by 2047, up from about 8.2 gigawatts today.
Reaching this scale will require substantial investment and faster project execution. By enabling private participation, the SHANTI Bill 2025 aims to mobilise domestic and global capital while strengthening India’s position in the international nuclear energy ecosystem.
Several major Indian conglomerates, including Tata Power, Adani Power, and Reliance Industries, have expressed interest in nuclear investments. Global suppliers such as Westinghouse, GE-Hitachi, EDF of France, and Russia’s Rosatom have also shown willingness to partner with Indian firms.
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Regulation, Safety and Safeguards
To address safety concerns, the SHANTI Bill 2025 strengthens regulatory oversight. It grants statutory status to the Atomic Energy Regulatory Board (AERB), which currently functions under an executive order.
With statutory backing, the AERB will have enhanced authority to issue licences, conduct inspections, enforce safety standards, and impose penalties for violations.
The Bill also proposes the establishment of an Atomic Energy Redressal Advisory Council to resolve disputes and provide advisory support on liability and regulatory matters.
Penalties under the new framework range from Rs 5 lakh for minor violations to up to Rs 1 crore for serious offences. All operators, whether public or private, will require government licences and mandatory safety clearances.
Certain exclusions are clearly specified. Operators will not be liable for damage to under-construction installations, other facilities on the same site, or transport vehicles carrying nuclear material at the time of an incident.
What Lies Ahead
If passed by Parliament, the SHANTI Bill 2025 will represent a historic shift in India’s nuclear policy. By modernising liability norms, opening the door to private participation, and reinforcing regulatory safeguards, the legislation has the potential to unlock billions of dollars in investment.
The success of the reform will depend on effective implementation, transparent regulation, and sustained public trust. If executed well, nuclear energy could emerge as a central pillar of India’s long-term clean energy and energy security strategy.
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By The News Update— Updated December 16, 2025
