India's nuclear power sector is poised for a significant transformation with the tabling of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, also known as the SHANTI Bill, in the Lok Sabha on Monday. This landmark legislation aims to overhaul the existing regulatory framework, paving the way for increased private sector participation and a substantial boost to the nation's nuclear energy capacity.
The SHANTI Bill seeks to replace the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 with a single, comprehensive law that aligns with India's current and future energy needs. The bill addresses key challenges that have historically hindered the growth of the nuclear sector, including limited access to capital, a restrictive legal environment, and concerns surrounding liability in the event of nuclear incidents.
One of the most significant aspects of the SHANTI Bill is its provision for private sector involvement in nuclear power projects. The bill allows private companies, including joint ventures with foreign entities, to apply for licenses to build and operate nuclear facilities. While the government will retain control over strategic activities such as uranium mining, nuclear fuel enrichment, and fuel reprocessing, this move is expected to attract significant investment and expertise into the sector. Private players could take a minority equity exposure of up to 49 per cent in upcoming nuclear power projects.
The amended bill also introduces a revised civil liability framework aimed at addressing concerns from both domestic and international investors. It seeks to balance the need for accountability with the desire to create a more predictable and investor-friendly environment. A key change is the removal of the "right of recourse" provision, which previously allowed nuclear plant operators to seek compensation from suppliers in the event of an accident caused by defective equipment. The bill also proposes a nuclear liability fund to cover accident claims. The Bill exempts suppliers of equipment for nuclear power plants from liability for a nuclear incident, which has been limited to the operators, except in cases caused by "a grave natural disaster of an exceptional character, an act of armed conflict, hostility, civil war, and insurrection or terrorism". The Bill specifies graded liability caps for nuclear power operators based on their size of installation. Operators of reactors with thermal power above 3,600 MWe will have a liability limit of Rs 3,000 crore. Reactors with thermal power above 1,500 MWe and up to 3,600 MWe will carry a cap of Rs 1,500 crore, while those above 750 MWe and up to 1,500 MWe will be liable up to Rs 750 crore.
The SHANTI Bill is closely aligned with India's ambitious goals for clean energy and energy security. The government aims to achieve 100 gigawatts (GW) of nuclear power capacity by 2047, a more than twelve-fold increase from the current 8.2 GW. This expansion is seen as crucial for meeting India's growing energy demands while also reducing its reliance on fossil fuels and achieving its decarbonization targets. The bill emphasizes the need to harness indigenous nuclear resources more fully and enable active participation of both public and private sectors, while also positioning India as a contributor to the global nuclear energy ecosystem.
In addition to large-scale reactors, the bill also promotes the development of Small Modular Reactors (SMRs). The government has launched a Nuclear Energy Mission with an outlay of Rs 20,000 crore for research and development of SMRs, targeting the operationalization of at least five indigenously developed SMRs by 2033.
The introduction of the SHANTI Bill has been welcomed by industry experts as a significant step towards modernizing India's nuclear sector and unlocking its full potential. By opening the sector to private investment, streamlining regulations, and addressing liability concerns, the bill is expected to accelerate the growth of nuclear power capacity and contribute to India's energy security and clean energy goals.
