New Delhi, December 17, 2025 – The Lok Sabha witnessed a historic moment on Monday as the government introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This landmark legislation aims to overhaul India's nuclear sector by ending the state monopoly and paving the way for regulated private participation. The SHANTI Bill, approved by the Union Cabinet on December 12, 2025, seeks to replace the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, with a single, comprehensive law.
Minister of State Jitendra Singh tabled the bill, emphasizing its alignment with India's present and future energy requirements. The government aims to significantly enhance nuclear installed capacity to support clean energy security and provide reliable power for emerging needs, such as data centers. The Bill is central to India's strategy to scale up clean, baseload power as renewable energy expands.
The SHANTI Bill is a comprehensive nuclear sector reform legislation designed to replace fragmented, outdated laws with a unified, forward-looking governance framework. The Bill will enable private companies and joint ventures to build, own, operate, and decommission nuclear power plants and reactors. While the private sector is expected to participate across the nuclear value chain, strategic functions such as nuclear material production and radioactive waste management will remain under the control of the Department of Atomic Energy. The bill allows private companies to invest up to 49% in nuclear power projects.
One of the key objectives of the SHANTI Bill is to attract private and foreign investment in the nuclear sector. India's existing nuclear laws have long been flagged by industry and foreign suppliers as deterrents to investment. The liability law, in particular, placed open-ended exposure on equipment suppliers, making global reactor manufacturers reluctant to enter the Indian market. The legislation limits liability for a nuclear incident to plant operators and explicitly exempts equipment suppliers. The Bill caps the maximum liability for each nuclear incident at the rupee equivalent of 300 million Special Drawing Rights (SDRs). Operators will be required to maintain insurance or liability funds ranging from about USD 11 million to USD 330 million, depending on reactor size. A separate nuclear liability fund will cover excess claims, with the government stepping in if damages exceed the capped limits.
The government states that the new Bill aligns with India's climate commitments, including its net-zero target by 2070 and an ambition to scale nuclear capacity to 100 gigawatts by 2047, up from approximately 8.2 gigawatts today. To reach its 100 GW nuclear target by 2047, the government has argued that private capital, advanced technology and global partnerships will be essential. Major Indian conglomerates, such as Tata Power, Adani Power, and Reliance Industries, have already shown interest in nuclear energy. Global suppliers, including Westinghouse, GE-Hitachi, France's EDF and Russia's Rosatom, have also indicated willingness to partner with Indian firms under a clearer liability framework.
The SHANTI Bill also proposes a revised and pragmatic civil liability framework for nuclear damage and confers statutory status to the Atomic Energy Regulatory Board. The Bill also strengthens mechanisms related to safety, security, safeguards, quality assurance and emergency preparedness. A dedicated atomic disputes tribunal is also envisaged to enhance regulatory certainty.
If implemented with institutional integrity, public transparency, and scientific rigor, SHANTI could transform nuclear energy from a niche contributor into a central pillar of India's 21st-century development strategy. The proposed legislation seeks to balance expansion of nuclear energy with safety, accountability and public interest, placing nuclear power within the broader national effort towards energy security and a lower-carbon future.
