India’s SHANTI Bill Opens Nuclear Energy Sector to Private Investment and Operation

In a historic policy shift, the Indian government has introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, in Parliament, aiming to end decades of state monopoly and allow the private sector to build, own, operate, and innovate in nuclear power generation. The landmark legislation marks a major overhaul of India’s nuclear energy framework and is seen as a critical step toward meeting the country’s ambitious target of 100 gigawatts (GW) of nuclear capacity by 2047.

Under the SHANTI Bill, private companies, including domestic firms and permitted joint ventures, will be able to participate in activities across the nuclear value chain—from power plant construction and operation to nuclear fuel fabrication and selected equipment manufacturing. This represents a dramatic departure from the current system, where the nuclear sector has been dominated almost exclusively by government entities under the 1962 Atomic Energy Act.

A central feature of the bill is the revamped liability and regulatory framework, designed to address longstanding concerns that have deterred investment. The new legislation consolidates existing laws into a single statute, repealing outdated provisions and simplifying compliance, licensing, and dispute resolution processes. It also introduces clearer rules on civil liability for nuclear damage, including insurance-backed liability caps for operators and provisions for a nuclear liability fund, which experts say will boost investor confidence. 

The SHANTI Bill will also strengthen regulatory oversight by granting statutory status to the Atomic Energy Regulatory Board and establishing mechanisms such as a Nuclear Damage Claims Commission and specialized tribunals for nuclear-related disputes, further separating regulatory functions from promotional activities. 

Government officials have emphasized that the private sector’s involvement is crucial for unlocking capital, accelerating deployment of advanced nuclear technologies such as Small Modular Reactors (SMRs), and enhancing India’s energy security and clean energy goals. Small modular reactors—smaller, factory-built units—are expected to play a key role in providing reliable baseload power for industrial, urban, and remote applications. 

While strategic core activities like uranium mining, enrichment, spent fuel management, and heavy water production will remain under government supervision, the private sector’s entry is expected to spur competition, innovation, and scale in areas such as fuel supply, manufacturing, and plant operation under strict safety and regulatory norms.

Supporters of the bill argue it will not only strengthen India’s energy mix and clean energy transition—helping reduce dependency on fossil fuels and meet net‑zero commitments—but also promote technology partnerships, job creation, and economic growth. Critics, however, urge careful implementation of safety and environmental safeguards given the sensitive nature of nuclear energy.

With parliamentary debate underway, the SHANTI Bill represents a watershed moment in India’s energy policy and could reshape the nuclear power landscape in the decades to come