New Delhi: The Lok Sabha has passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, a landmark piece of legislation that opens the door for private sector participation in India's nuclear energy industry. The bill, which was introduced on December 15, 2025, seeks to overhaul India's nuclear energy framework and align it with the nation's clean energy transition, energy security needs, and net-zero ambitions.
The passage of the SHANTI Bill marks a significant shift from a state-dominated, closed model to a more investment-friendly and innovation-driven framework. It aims to consolidate existing laws, address regulatory gaps, and create a structure that supports expansion at scale. While sensitive and strategic operations will remain under government control, the bill proposes opening areas such as mineral exploration, fuel fabrication, and equipment manufacturing to private and global companies.
The legislation allows private companies, joint ventures, public-private partnerships, and other permitted entities to build, own, operate, and decommission nuclear power plants. It also permits private enterprises to seek authorization for establishing and running nuclear facilities, as well as transporting nuclear fuel. However, crucial operations including uranium enrichment, spent fuel handling, and heavy water manufacturing will continue to be exclusively managed by the Central government.
The SHANTI Bill also introduces a revised civil liability framework for nuclear damage and grants statutory status to the Atomic Energy Regulatory Board (AERB). It establishes a strong and independent nuclear regulatory architecture and a specialized nuclear tribunal for resolving disputes. Operators must arrange insurance or financial security, and a Nuclear Liability Fund will be established to meet liabilities. The Bill also promotes the development of Small Modular Reactors (SMRs).
The government aims to increase India's installed nuclear power capacity to 100 GW by 2047, up from the current 8.8 GW. To support this goal, the Union Budget announced a ₹20,000 crore mission to develop small modular reactors and customized 220 MW Pressurized Heavy Water reactors. Officials aim to operationalize at least five indigenous SMRs by 2033 to supply continuous power to energy-intensive industries.
The passage of the SHANTI Bill was met with some opposition. Concerns were raised regarding the liability of equipment suppliers in the event of a nuclear accident and the independence of the Atomic Energy Regulatory Board. Some opposition members argued that the entry of private companies would lead to profiteering and would not benefit the general public. A cap of approximately $360 million has been placed on liability.
Despite the opposition, the government maintains that the SHANTI Bill is essential for modernizing India's nuclear energy laws, attracting investment, and achieving its clean energy goals. Union Minister Jitendra Singh stated that the bill would help the country achieve its target of 100 GW of nuclear capacity by 2047 and that it aligns with global benchmarks and strategies for clean energy. The bill will now move to the Rajya Sabha for further discussion and consideration.
