SHANTI Bill Introduced In Lok Sabha: What India’s Major Nuclear Energy Reform Means

The Union government has introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 in the Lok Sabha, marking a landmark shift in India’s civil nuclear policy. The proposed law aims to dismantle the long-standing state monopoly over nuclear power generation and open the sector to private participation for the first time.

If cleared by Parliament, the Bill will repeal two key legislations — the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 — which have long been cited as barriers to domestic and foreign investment in nuclear energy. The government has said the new framework will establish a more practical nuclear liability regime and grant statutory backing to the Atomic Energy Regulatory Board, strengthening regulatory oversight.

Under the proposed changes, Indian private companies will be allowed to apply for licences to build, own, operate and decommission nuclear power plants and reactors, activities that were previously restricted mainly to state-run entities. Liability in case of a nuclear accident will rest solely with plant operators, while equipment suppliers will be exempt, a move intended to reassure foreign vendors. The Bill also caps liability for each incident at the rupee equivalent of 300 million Special Drawing Rights, in line with global standards, and mandates insurance or dedicated liability funds based on reactor capacity.

While Indian-incorporated private firms will be permitted to undertake several nuclear-related activities — including fuel fabrication, transport and storage, and import or export of approved technology — companies controlled by foreign entities will not be eligible for licences. Sensitive operations such as uranium enrichment, spent-fuel reprocessing and heavy water production will remain under government control.

The reform is closely linked to India’s climate and energy goals, including achieving net-zero emissions by 2070 and expanding nuclear capacity to 100 gigawatts by 2047, compared with just over 8 gigawatts currently. The government has emphasised that meeting these targets will require greater use of indigenous resources, private-sector involvement and deeper integration into the global nuclear energy ecosystem.

Several Indian conglomerates have already shown interest in investing in the nuclear sector, while international players have expressed willingness to partner with Indian firms. The Bill also outlines exclusions from liability, specifies penalties for violations and proposes the creation of a dedicated advisory body to resolve disputes. If enacted, the SHANTI Bill would represent one of the most significant transformations in India’s nuclear energy policy, with the potential to attract large-scale investment and position nuclear power as a key pillar of the country’s clean energy future.