Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India (SHANTI Bill)

15.12.2025

Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India (SHANTI Bill)

Context

The Union Cabinet has approved the Atomic Energy Bill, 2025, branded as the SHANTI Bill, marking the biggest reform in India’s nuclear sector since 1962. The Bill is a pivotal shift in policy, moving from a decades-old state-dominated model to one that encourages private and global investment.

About the SHANTI Bill (Atomic Energy Bill, 2025)

What it is?

A comprehensive nuclear-sector reform bill replacing fragmented laws and modernising India’s nuclear governance, safety, liability, and industry participation framework. It seeks to open up the highly restricted civil nuclear power sector for private participation.

Ministry: Introduced by the Department of Atomic Energy (DAE) under the direct charge of the Prime Minister; regulatory reforms involve creating an independent nuclear safety authority.

Law Governing Nuclear Energy Currently: India’s nuclear sector is presently overseen primarily by:

• Atomic Energy Act, 1962: This act strictly prohibited private players from operating nuclear plants, citing national security and safety concerns. The Central Government had significant control over the production, development, use, and disposal of atomic energy.
• Civil Liability for Nuclear Damage Act, 2010 (CLND Act): This act has been criticized for placing heavy and ambiguous liability burdens on suppliers, which acts as a deterrent for foreign vendors.

Aim: To enable large-scale nuclear expansion, attract private and global investment, modernise regulatory oversight, reform liability rules, and accelerate India’s path to 100 GW of nuclear power by 2047. It is essential for India's long-term decarbonisation strategy and energy security.

Key Provisions (Features)

• Opening the Nuclear Value Chain to Private Players: Allows private sector entry in exploration of atomic minerals, fuel fabrication, equipment manufacturing, and potentially plant operations. The Bill allows private companies up to 49% minority equity in nuclear power projects.
• Unified Legal Framework: Consolidates outdated laws into a streamlined licensing, safety, compliance, and operations structure. The Bill aims to repeal both the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010.
• Reformed Nuclear Liability Architecture: The framework is designed to align with global norms.
  • It includes clear delineation of operator–supplier responsibilities.
  • It introduces insurance-backed liability caps.
  • The government will provide backstopping beyond a defined threshold.
  • The maximum liability for each nuclear incident shall be the rupee equivalent of three hundred million Special Drawing Rights (SDRs) or higher, as determined by the Central Government.
• Independent Nuclear Safety Authority: A new regulator will be created to ensure transparent, professional, and globally benchmarked safety oversight.
• Dedicated Nuclear Tribunal: A specialised mechanism will be established to settle liability and contractual disputes efficiently.
• Boost to Small Modular Reactors (SMRs): The Bill supports R&D and deployment of SMRs for industrial and grid-scale decarbonisation.

Significance

• Ends State Monopoly: Breaks over 60 years of state monopoly, enabling private innovation and investment.
• Critical for Energy Targets: It is critical for achieving the 100 GW nuclear capacity goal by 2047 and India’s net-zero by 2070 target.
• Strengthens Energy Security: Positions nuclear power as a central pillar of India's long-term decarbonisation strategy, reducing dependence on fossil fuels and stabilising the energy mix.
• Addresses Grid Stability: Nuclear energy offers reliable baseload power, which is essential given the intermittency of rapidly expanding renewable energy sources.

Conclusion

The SHANTI Bill marks a historic shift, dismantling a 60-year state monopoly. By reforming liability and attracting private capital, the Bill is critical to achieving 100 GW nuclear capacity by 2047. If implemented with robust safety oversight, this reform can firmly establish nuclear energy as a cornerstone of India's net-zero and energy security goals.