By: Inaya
India’s Parliament has approved the SHANTI Bill, 2025, Sustainable Harnessing and Advancement of Nuclear Technology for Transforming India, a sweeping overhaul of the nation’s atomic energy laws. The new legislation repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, replacing them with a single, modern framework. For the first time, private and joint-venture companies will be permitted to build, own and operate nuclear power plants and related facilities under strict licensing and safety oversight. Government leaders say the reforms will “supercharge” India’s clean energy transition and help achieve the goal of 100 GW of nuclear capacity by 2047. Opposition parties and safety experts, however, warn that the dilution of supplier liability and the rapid pace of passage merit careful scrutiny.
The SHANTI Bill comes amid India’s broader push for energy self-reliance and decarbonisation. Prime Minister Narendra Modi framed the change as “a transformational moment” for India’s technology landscape, linking it to powering data centers, AI and “green manufacturing”. Science Minister Jitendra Singh told Parliament the reforms are driven by energy demands from industrial growth and digital expansion, and by the vision of using nuclear power as a dependable “24×7” energy source unlike intermittent renewables. The government has already announced a National Nuclear Energy Mission and budgetary outlays of ₹20,000 crore to develop small modular reactors (SMRs) and advanced designs, and sees SHANTI as the regulatory bedrock for these initiatives. In President Droupadi Murmu’s words, once enacted the law “signals a decisive boost to a cleanenergy future for the country and the world.”
India’s Nuclear Program
India’s civil nuclear journey has been state-led since independence. The Atomic Energy Act, 1962, consolidated earlier laws to tightly control all aspects of the atomic fuel cycle for “peaceful purposes”, effectively giving the Central government a monopoly on nuclear power development. Indigenous pressurised heavy water reactors (PHWRs) at sites like Tarapur, 1969, and later Kaiga, Narora and Kakrapar were built by NPCIL under DAE supervision. India’s nuclear policy emphasised self-reliance, including a three-stage plan to exploit thorium, but also led to decades of isolation after India’s 1974 “peaceful nuclear explosion” and 1998 tests. Only after a U.S.-India nuclear deal, 123 Agreement, and an 2008 NSG waiver could India resume major reactor purchases. In 2010 India enacted the Civil Liability for Nuclear Damage Act (CLNDA) to limit reactor operators’ liability after Fukushima, but its strict “right of recourse” clause kept many international suppliers at bay.
As of late 2025, nuclear power in India contributes only 3% of electricity. Installed capacity is under 9 GW, approximately 8.78 GW, comprising 22 reactors. A series of past government targets such as achieving 20-63 GW by 2032 fell short, and policymakers view that as “modest”. In the 2025 Union Budget, India set an ambitious goal of 100 GW by 2047, aligning with its net-zeroby-2070 commitment. The rationale: reliable nuclear baseload will complement renewables and reduce fossil imports. However, the regulatory regime, built for a small, public-sector program, was deemed outdated. The Ministry of Power and DAE flagged issues like fragmented licensing, limited regulator powers, and lack of proactive safety mandates. The SHANTI Bill is presented as the solution to this “historic” imbalance.
Key Provisions of the SHANTI Bill
The new law consolidates and modernises India’s nuclear regulatory architecture under one statute. Its core elements include entry of the private sector with Indian companies and joint ventures, including wholly Indian or government-owned firms, applying for licences to build, own, operate and decommission nuclear reactors and fuel-cycle facilities. For the first time, private firms can undertake nuclear fuel fabrication and limited enrichment “up to such threshold” as notified. Foreign vendors and investors can participate, but only through Indian-incorporated entities or joint venture; direct foreign control or ownership is still prohibited.
Certain sensitive steps of the fuel cycle remain exclusive to the state. Activities like advanced uranium mining, isotopic enrichment and heavy water production, spent-fuel reprocessing and highlevel waste management are still reserved for the Central government or its wholly-owned companies. All fissile and prescribed substances such uranium, thorium, plutonium, etc. stay under government monitoring. Nuclear waste, cooling spent fuel, returning heavy water, etc, must ultimately be handed over to state agencies. Hence, core strategic controls and safety functions remain under sovereign oversight, even as reactor construction and operation open up.
The SHANTI Bill enshrines a robust dual authorisation process. Every nuclear facility or activity such as plant construction, operation, transport of fuel, and decommissioning will require two clearances, an operating licence and a safety authorisation from the regulator. Radiation sources and nuclear materials can only be used by licensee or authorised persons; research and innovation activities get limited exemptions. Safety regulation is strengthened by giving India’s Atomic Energy Regulatory Board (AERB) a formal statutory status. AERB will set binding safety standards, inspect plants, and can suspend or cancel licences for breaches. An empowered Atomic Energy Redressal Advisory Council is created to adjudicate licensee grievances and coordinate emergency response, and the Appellate Tribunal for Electricity will serve as the appeals body.
The Bill also introduces a graded liability cap. Large reactors, thermal power ≥ 3,600 MW, will have operator liability capped at ₹3,000 crore or about $330 million. Smaller plants have correspondingly lower caps down to ₹100 crore for small reactors and fuel-cycle transport. Operators must carry insurance or financial security though only for private-sector plants; centralgovernment reactors are exempt. The government can set up a Nuclear Liability Fund to cover claims beyond the cap, aligned with the Convention on Supplementary Compensation (CSC) international framework. Notably, the “right of recourse” that allowed operators to sue equipment suppliers has been removed. The new law generally protects suppliers from liability unless their contract specifies otherwise, which the government argues is needed to attract investment. Critics counter that this shields foreign vendors unduly.
The Bill codifies strict safety norms and penalties. Violations now carry monetary fines and/or jail terms based on severity, a marked change from the previous law, which lacked explicit penalties. The lowest-tier breach is penalised up to ₹5 lakh, up to ₹10 crore for “severe” violations. These penalties aim to enforce compliance. All facets of nuclear emergency planning, quality assurance and security systems are also to be upgraded under the new regime.
India’s atomic law explicitly covers peaceful applications of radiation technology beyond power. The SHANTI Bill creates a regulatory framework for nuclear uses in medicine, agriculture, industry and research. This will oversee radiopharmaceutical development, cancer therapy isotopes, food irradiation and agricultural applications, among others.
Sectoral Impacts
Energy (Power): The clearest effect is on nuclear power capacity. By breaking the public-sector monopoly, the Bill paves the way for capital-intensive private investment. Companies like Larsen & Toubro, Tata Power, Reliance, Adani, JSW and Vedanta as recently reported by Reuters can now enter the sector. Global reactor vendors such as Westinghouse, EDF (France), Rosatom (Russia), which had stalled projects in India, should also be encouraged. In the near term, the focus is on completing plants already under construction e.g. being Kudankulam VVERs and starting new ones. More importantly, the Bill underpins India’s SMR strategy. Under a 2025 Nuclear Mission, India plans to deploy advanced SMRs e.g. the indigenous 200 MW “Bharat Small Reactors” by 2033. Private or JV-led SMRs could power mines, industrial parks or data centers, for instance a steel mill in Odisha or a Hyderabad data center could theoretically host its own SMR. By streamlining approvals and establishing liability clarity, the legislation aims to cut project lead times and mobilise the trillions of rupees needed for 100 GW.
Research and Industry: Broader R&D is likely to expand. Universities, labs and startups can now pursue nuclear research and pilot projects with clearer regulations. The statute exempts limited research activities from licensing, encouraging innovation. Over time, one might see private nuclear fuel fabrication plants or accelerator facilities under regulation. Non-power sectors like medical isotopes for cancer therapy and industrial radiography stand to benefit. As the government noted, cancer-care and agricultural applications of radiation will be explicitly encouraged. This may boost India’s domestic radiopharma industry and reduce dependency on imports of isotopes.
Defense and Space: The SHANTI Bill is strictly about peaceful atomic energy including military nuclear facilities, weapons, and naval reactors, remain governed by separate security protocols, as before. In fact, the law underscores that “strategic autonomy” is protected, critical fuel-cycle steps and fissile material security stay with the state. However, the law could indirectly aid related sectors. India’s space program, uses radioisotope thermal generators (RTGs) and is exploring nuclear propulsion concepts; clearer civilian nuclear rules could cross-pollinate tech expertise. Similarly, knowledge gained from SMRs or advanced reactors might benefit future naval reactor designs. Overall, industry analysts see SHANTI as fitting seamlessly into India’s Atmanirbhar vishva veto strategy, nurturing an indigenous nuclear supply chain such as reactor components, turbines, electronics, will underpin wider high-tech manufacturing.
Medical and Other Civil Uses: In medicine, easier regulatory access could accelerate production of isotopes like Mo-99 and Lu-177, which India currently partly imports. Radiation-based sterilisation for pharmaceuticals and wastewater treatment is another growth area. Agricultural programs such as sterile insect technique, food irradiation and industrial uses (material testing) will now be covered under the national nuclear law, giving them a stable policy basis.
Enthusiasm and Concerns
The official tone is certainly upbeat. Science Minister Jitendra Singh said SHANTI is “aligned to achieve the objectives of increasing the share of nuclear energy” while still “honouring India’s obligations towards safety”. In Parliament, PM Modi and Minister Singh highlighted multi-year consultations with industry, scientists and even startups on the Bill. They stress that core safety controls such as regulator power, physical security, and spent-fuel custody remain government-held.
Foreign expert Robinder Sachdev, involved in past Indo-US nuclear accords, argues SHANTI was “long overdue”. He notes that the 2010 liability law had scared off Indian firms (BHEL, L&T) and foreign majors alike. By removing supplier liability, Sachdev says the Bill “creates the right environment for private operators and vendors”, unlocking stalled projects and ultimately delivering cheaper, cleaner power. “After this, nuclear energy will be cheaper than coal,” he tells ANI. He points out nuclear plants last 70-80 years versus 30-40 for coal, and emit zero carbon during operation. In his view, India’s 100 GW target by 2047 can finally be pursued in earnest now that domestic capital and global technology can be mobilised. Several industry voices share this optimism, financiers and equipment makers see a potential $200+ billion investment opportunity in civil nuclear.
Leading conglomerates and utilities will be watching closely. A Moneycontrol analysis lists Tata Power, Adani, JSW and others as likely entrants under SHANTI. Adani Group sources, have been in talks to install multiple 200 MW SMRs in Uttar Pradesh. Legal experts note that foreign companies such as Westinghouse, GE-Hitachi and EDF have long insisted on capped liability to sell reactors to India. Reports observes that SHANTI removes supplier risk and doubles operators’ caps to ₹30 billion for big reactors, measures designed to reassure both domestic and international investors. A partner at JSA Advocates explains that foreign participation is allowed but must be structured through Indian-incorporated entities.
Not all reactions are favorable. The opposition in Parliament uniformly called for a select committee review, lamenting the “bulldozing” of the Bill. MPs berated the dilution of liability and the lack of transparency by keeping the law out of RTI. One MP warned that the law “dismantles the liability framework established after the Bhopal tragedy”. Environmental and anti-nuclear activists echo such concerns, G. Sundarrajan of Greenpeace India told the Associated Press that SHANTI “takes away essential safeguards” and makes it “nearly impossible” for victims to seek redress. Opposition leaders accused the government of privatising profits while socialising risks, warning that the sensitive sector could fall prey to “crony capitalism” .
Some domestic critics also view the move in geopolitical terms. The Wire and other commentators highlight that U.S. and other suppliers had pressed India to relax liability norms for years. They note that the timing, amid ongoing trade talks, suggests India is making concessions to unlock Western investment. The SHANTI Bill language hints at this, its statement of objectives underscores innovation and clean energy, even as it quietly deletes the old supplier clause. Nevertheless, government and pro-reform experts counter that India’s own needs and self-interest,
not foreign pressure, drive the change.
Aligning with National Goals
The SHANTI Bill is a key plank in India’s broader development vision. It dovetails with the “Viksit Bharat 2047” strategy and Atmanirbhar Bharat, self-reliant India, agenda. By opening nuclear power to private capital and aligning it with Make-in-India, the law aims to develop a domestic supply chain such as reactor components, fuel fabrication, and SMR manufacturing with technology transfer and local jobs. Nuclear power’s low-carbon profile fits India’s climate commitments and its pledge to reach net-zero by 2070. The government often frames nuclear as essential “baseload” complement to solar and wind, a steady, carbon-free source critical for energy-intensive industries and digital infrastructure.
Indeed, planners highlight that India’s energy demand is surging, from data centers (AI computing), manufacturing, to urbanisation, and requires firm grid power. Nuclear, they argue, will provide reliable power when renewables drop at night or monsoons. It also reduces reliance on imported fuels; while India still imports nuclear fuel, and will continue to, under IAEA safeguards agreements, a bigger domestic reactor fleet means less coal use and lower oil & gas spending. In Modi’s words, the reform “opens numerous opportunities for the private sector and our youth”, and fits India’s industrial growth trajectory.
The bill also underscores science and technology ambitions. By integrating civilian nuclear and research under one law, India hopes to attract R&D funding and start-ups into nuclear innovation. A ₹1 lakh-crore, 100,000 crore, R&D fund was announced to spur private-sector nuclear research. Nuclear physics, reactor engineering, fuel-cycle chemistry and related high-tech fields may see a boost, potentially complementing India’s semiconductor and AI thrust.
Long-Term Implications
If successfully implemented, analysts believe SHANTI can unlock a nuclear energy renaissance in India. Proponents envision hundreds of reactors, both large and modular, being added in coming decades. The law lays a foundation for an ecosystem where nuclear projects run on partly privatised funding models, with AERB as a strong, independent regulator ensuring safety. Over time, a scaledup nuclear sector could enhance India’s global competitiveness in energy technology and exports by developing SMR designs for export. As the Times of India noted, India’s steps align it with global trends, China, South Korea and Japan are expanding nuclear, and SMRs are gaining traction in the US/EU. By adjusting liability norms to international standards, India may rejuvenate stalled collaborations, plans to build US reactors in Andhra Pradesh and France’s EPR, long dormant, could resume under the new regime.
However, challenges lie ahead. The success of SHANTI depends on implementing rules and licences that strike the right balance of safety and flexibility. Critics ask: Will AERB truly act independently in practice? Can local communities be convinced on new plant siting? How will nuclear insurance markets adapt? These questions, familiar from global nuclear projects, now await concrete answers in the Indian context.
For now, the SHANTI Bill marks a turning point. It sends a strong signal that India is serious about scaling nuclear power as part of its energy mix. The government’s framing is optimistic as private investment and innovation will help meet climate goals and bolster “energy security”, while core safeguards remain robust. Whether in 2070 India indeed operates 100 GW of carbon-free nuclear capacity, the SHANTI law has reset the rules of the game. Observers agree it is a landmark in India’s civil-nuclear journey, one that could ultimately reshape its energy landscape and industrial growth for decades to come