India's nuclear power sector is poised for a significant boost following the Union Cabinet's approval of the Atomic Energy Bill 2025, now known as the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill. This landmark legislation aims to overhaul the country's atomic energy framework by amending the Atomic Energy Act of 1962, aligning it with global practices to facilitate private and foreign participation in civil nuclear power projects. The move is considered crucial for India's long-term energy security, climate commitments, and grid stability.
The SHANTI Bill seeks to modernize India's nuclear energy sector, which has been largely dominated by government entities. By opening the sector to private companies across the value chain, the bill ends the exclusive monopoly of the Department of Atomic Energy. Private companies can now invest in and operate nuclear power plants in partnership with public sector agencies, with private companies allowed up to 49% minority equity in nuclear power projects. The bill also expands the scope of private participation to include exploration of atomic minerals, fuel fabrication, equipment manufacturing, select aspects of plant operations, and research and development (R&D) of civil nuclear technologies, especially Small Modular Reactors (SMRs).
India has set an ambitious target to increase its nuclear power capacity to 100 GW by 2047, a substantial increase from the current installed capacity of around 8.78 GW spread across 24 nuclear power reactors. To achieve this goal, the government has launched a Nuclear Energy Mission with an outlay of ₹20,000 crore for R&D in Small Modular Reactors (SMRs), targeting at least 5 indigenously developed SMRs operational by 2033. These SMRs, with a capacity of under 300 MW, are designed to be built in factories and shipped to sites, offering a smaller size, modular construction, and quicker deployment.
Several Indian SMR designs are under development by the Bhabha Atomic Research Centre (BARC), including the Bharat Small Reactor (BSR – 220 MWe), Bharat Small Modular Reactor (BSMR – 200 MWe), and SMR-55 (55 MWe). The government is also encouraging state participation in establishing nuclear power plants within their jurisdictions, with Union Minister of Power Manohar Lal Khattar urging state governments to evaluate the feasibility of such projects. This decentralized approach aims to accelerate progress toward the nation's energy security and decarbonization goals.
The SHANTI Bill is expected to consolidate existing laws into a single, comprehensive statute to enhance regulatory clarity and investor confidence. It also addresses long-standing concerns around regulation, safety oversight, liability, and dispute resolution. The bill introduces clearer limits and insurance systems for nuclear liability, aiming to provide companies with a better understanding of their risks before entering projects.
The approval of the SHANTI Bill has been met with positive reactions, with officials stating that the changes are meant to increase power capacity, bring in private funding, and support clean energy goals while maintaining strict government oversight on safety and security. Prime Minister's Office has stated that private participation in nuclear power will strengthen India's energy security and support clean electricity needs. If implemented carefully, the SHANTI Bill could become a cornerstone of India's energy security and net-zero pathway.
