In a big policy reform in the field of energy, the Union government has brought a bill called the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, in Lok Sabha, intended at upgrading and liberalizing India’s nuclear sector by making way for private companies in an area that has so far been controlled by public sector undertakings.
This historic bill seeks to repeal the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. All this is aimed at developing a holistic framework that would ensure active engagement of all stakeholders and promote the development of nuclear energy.
Important Highlights of the SHANTI Bill
- Entry into the Private Sector: For the first time, the private sector and joint ventures shall be allowed to establish, own, operate, and decommission nuclear reactors and nuclear power plants.
- Expanded Roles: Besides, private entities may participate in the nuclear fuel fabrication process and the manufacture of nuclear equipment, as well as other nuclear infrastructure tasks.
- Unified Regulatory Framework: The proposed legislation integrates current nuclear laws into a contemporary law that enhances regulatory efficiency and boosts confidence.
- Foreign and Private Investment: This bill may permit a foreign direct investment of a maximum of 49% in nuclear ventures to attract foreign capital and technological know-how.
- Specialised Nuclear Tribunal: It is also proposed in the bill to establish a special tribunal that will address all matters related to nuclear energy.
The importance of this reform
The nuclear power capacity in India has all along been constrained by regulatory regimes and a government monopoly, with all commercial reactors being operated by Nuclear Power Corporation of India Ltd (NPCIL). In this regard, opening this sector is regarded as critical for meeting future nuclear power plans in a bid to respond to rising domestic power demand.
However, the officials mention that “nuclear power is a clean and reliable source of energy that can dovetail into renewables and advance our country’s industrialization and meet our Paris Agreement targets.” The SHANTI Bill is also part of the “overall plan for the enhancement of our country’s nuclear power production capacity from the current 4 gigawatts to 100 gigawatts by the year 2047.”
Safety and Liability Reforms
One of the factors deterring the entry of the private and foreign sectors until now has been the rules related to nuclear liability. The intention of the SHANTI Bill is to provide a modified liability cap on suppliers and ensure the viability of investments while maintaining adequate safety.
Moreover, there is expected improvements in regulatory control with a specialised body ensuring that the concerns for safety, environment, and standards will always remain central in the wake of changes.
Reactions and Future Outlook
The SHANTI Bill has brought forth debate among policymakers and stakeholders in this industry. One group believes that it will aid innovation by having private entities involved, while others call for stricter health and safety procedures to be in place.
Passing the SHANTI Bill within Parliament will greatly influence the outlook of the energy scenario in India by making nuclear power more competitive and attracting foreign collaborations to contribute to the growth of the economy and the country’s energy security.
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