SHANTI Bill Introduced: India’s Landmark Nuclear Reform Explained In Simple Terms
India’s government introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 in the Lok Sabha on Monday, marking a potential end to the state’s decades-long monopoly over civil nuclear energy by welcoming private sector participation.
Parliamentary approval of the legislation would abolish both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010—statutes that industry stakeholders and international partners have long identified as significant barriers to nuclear power investment.
Minister of State in PMO Jitendra Singh stated the Bill aims to establish a practical civil liability framework for nuclear damage while granting statutory recognition to the Atomic Energy Regulatory Board.
The government maintains the SHANTI Bill supports India’s objectives of expanding nuclear energy’s contribution to the national power grid, fostering innovation in nuclear technology and science, broadening applications beyond electricity generation, and upholding international commitments regarding nuclear safety, security and safeguards.
Core Provisions of SHANTI Bill
The legislation introduces a major policy shift by permitting Indian private enterprises to seek licences for constructing, owning, operating and decommissioning nuclear facilities and reactors—functions previously confined largely to the Nuclear Power Corporation of India (NPCIL) and joint ventures with government-owned entities.
The Bill restricts nuclear incident liability to plant operators while explicitly protecting equipment suppliers from legal exposure, resolving a critical issue that previously discouraged foreign vendors from entering the Indian market.
Maximum liability per nuclear incident is capped at the rupee equivalent of 300 million Special Drawing Rights (SDRs)—an IMF-designated reserve asset—conforming to international standards.
Operators must maintain insurance or liability funds between approximately USD 11 million and USD 330 million based on reactor capacity. Additional claims exceeding these amounts would be covered by a dedicated nuclear liability fund, with government intervention if damages surpass capped thresholds.
Indian-incorporated private firms would gain eligibility for various nuclear-sector activities including nuclear fuel fabrication, nuclear and spent fuel transportation and storage, and importing or exporting designated equipment, technology or software.
Foreign-incorporated companies or entities under foreign control are barred from licence eligibility. Sensitive operations including fuel enrichment, spent-fuel reprocessing and heavy water production remain exclusively under government jurisdiction.
Strategic Importance
The legislation directly supports India’s climate agenda, including the net-zero emissions target by 2070 and plans to achieve 100 gigawatts of nuclear capacity by 2047—a substantial increase from the current 8.2 GW.
Achieving this expansion requires optimizing domestic nuclear resources, facilitating public and private sector involvement, and establishing India as a significant player in the worldwide nuclear energy landscape, according to government assessments.
Leading Indian business groups including Tata Power, Adani Power and Reliance Industries have signaled investment interest in nuclear energy, while international suppliers such as Westinghouse, GE-Hitachi, France’s EDF and Russia’s Rosatom have shown readiness to collaborate with Indian partners.
The Bill specifies certain liability exemptions: operators bear no responsibility for damage to the nuclear installation under construction, other facilities at the same location, associated property, or transport vehicles carrying nuclear material during an incident.
Oversight and Enforcement
The legislation provides statutory authority to the Atomic Energy Regulatory Board (AERB), currently operating under executive order, thereby reinforcing safety and regulatory mechanisms. It also establishes an Atomic Energy Redressal Advisory Council for dispute resolution.
Penalties for violations range from Rs 5 lakh for minor infractions to Rs 1 crore for severe offenses. Both public and private operators require government licences and AERB safety approvals, while foreign-controlled entities face absolute prohibition from licence acquisition.
Enactment of the Bill would represent a watershed moment in India’s nuclear policy, potentially attracting billions of dollars in investment and establishing atomic energy as a fundamental pillar of the nation’s sustainable energy roadmap.
(with inputs from agencies)