New Delhi: In a landmark decision poised to reshape India's energy landscape, the Union Cabinet has approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill. This pivotal legislation aims to open the doors to private sector participation in the nation's nuclear power sector, which has been under tight government control. The bill, expected to be tabled in Parliament next week, marks a significant stride towards achieving India's ambitious goal of 100 GW of nuclear energy capacity by 2047, coinciding with the centennial of India's independence.
The SHANTI Bill is a comprehensive law that will replace the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. By subsuming these existing laws, SHANTI seeks to create a more streamlined and conducive environment for wider collaborations and investments in the nuclear sector. The Atomic Energy Act currently does not allow participation of the private sector or even state governments. The revamped legislation includes enabling provisions designed to attract private companies, including foreign technology and equipment suppliers, who were previously deterred by existing regulations.
Prime Minister Narendra Modi had hinted at this significant policy shift last month, emphasizing the government's commitment to opening the nuclear sector to private players, mirroring the approach taken with the space sector. He stated that this move would lay a strong foundation for private sector involvement, fostering opportunities in small modular reactors (SMRs), advanced reactors, and nuclear innovation. Finance Minister Nirmala Sitharaman had earlier announced plans to open up the nuclear power sector for private sector participation during her budget speech in February. She also announced a ₹20,000-crore Nuclear Energy Mission to support research and development of small modular reactors (SMRs) and to make five indigenously developed SMRs operational by 2033.
Currently, India's nuclear energy infrastructure consists of 23 reactors, all operated by the state-owned Nuclear Power Corporation of India Ltd (NPCIL), with a total installed capacity of 8.8 GW. While modest, India has set a target of achieving 22 GW capacity by 2032. The infusion of private capital and expertise is expected to accelerate the deployment of nuclear power plants and contribute significantly to meeting the growing energy demands of the country.
The decision to open the nuclear sector follows a series of reforms aimed at boosting India's energy security and technological leadership. The SHANTI Bill is poised to amend clauses in existing legislation that have been perceived as deterrents to private investment, paving the way for a more dynamic and competitive nuclear energy market. The government aims to ensure seamless, efficient, and transparent utilization of resources in the nuclear sector.
The approval of the SHANTI Bill is not only a crucial step toward achieving India's energy goals but also a testament to the government's commitment to sustainable development and technological advancement. By fostering collaboration between the public and private sectors, India is poised to unlock the full potential of nuclear energy and secure a cleaner, more reliable energy future.
