Explained: SHANTI Bill and India's push for private nuclear energy

The Minister of State of Science & Technology, Jitendra Singh, on Monday introduced a Bill in the Lok Sabha that seeks to open the public sector-controlled nuclear industry to private players. The move aligns with the government's aim to achieve 100 gigawatt (GW) of nuclear power capacity by 2047.

 

The Bill, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill (SHANTI), 2025, also seeks to repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, that currently regulate India's nuclear landscape.

 

But what does the bill propose?

The SHANTI 2025 proposes a new legal framework to govern the production, use and regulation of nuclear energy and ionising radiation in India. It states that nuclear energy is critical to meeting India’s growing demand for round-the-clock clean power, especially as energy-intensive technologies such as artificial intelligence, data centres and manufacturing expand.

What changes for private companies?

For the first time, private companies, including joint ventures and other entities, will be able to apply for licences to set up and operate nuclear facilities. The Bill also allows such entities to transport nuclear fuel.

 

However, key activities such as uranium enrichment, spent fuel management and heavy water production will continue to remain under the exclusive control of the Centre.

 

How will nuclear activities be regulated?

The Bill states that all nuclear and radiation-related activities will require a licence from the Centre and safety authorisation from the Atomic Energy Regulatory Board. It gives statutory backing to the Atomic Energy Regulatory Board, defining its powers to regulate safety, radiation exposure, waste management, inspections and emergency preparedness.

 

It also gives the Centre power to assume control of radioactive substances or radiation-generating equipment to contain a safety hazard.

 

"The Central Government may, either on the recommendations of the Board or if it considers necessary for the prevention of radiation hazards, assume control of any radioactive substance or radiation-generating equipment, including for their safe disposal and the cost of such disposal may be recovered from the holder of safety authorisation," the Bill states.

 

What happens in case of a nuclear accident?

The operator of a nuclear installation will be primarily liable for nuclear damage caused by an incident. It states that the operator shall be liable for damages except those caused by "a grave natural disaster of an exceptional character, an act of armed conflict, hostility, civil war, and insurrection or terrorism".

 

It also states that if compensation exceeds the operator’s liability, the Centre will be liable, the Bill states.

 

Operators are required to maintain insurance or financial security to cover potential nuclear damage. The Bill also establishes a Nuclear Damage Claims Commission to adjudicate compensation claims. At present, the Indian Nuclear Insurance Pool (INIP) provides ₹1,500 crore in coverage for nuclear operator and supplier liability under the Civil Liability for Nuclear Damage (CLND) Act 2010.

 

Research and innovation activities are largely exempt from licensing requirements, except in cases involving national security or activities reserved for the government.

 

Why does opening the nuclear sector matter?

The Bill marks a shift in India’s nuclear policy by opening the door to private sector participation. Currently, India’s nuclear energy base remains modest, with 23 reactors run solely by the state-owned Nuclear Power Corporation of India Ltd (NPCIL). Collectively, the total installed nuclear capacity stands at just 8.8 GW.

 

However, it has set a target of achieving 22 GW capacity by 2032 and 100 GW by 2047. Against this backdrop, the Centre’s plans to allow private companies into the civil nuclear sector could help the country move closer to its targets.