Energy stocks to gain from SHANTI Bill, says Elara Capital; top bets here

India’s nuclear energy sector is poised to benefit from the Nuclear Energy for Transforming India (SHANTI) initiative, as the country’s leading energy players, NTPC, Tata Power, Jindal Nuclear, Reliance, and Adani Power, are aggressively pursuing small modular reactors (SMRs) to bolster their clean energy strategies, according to Elara Capital.

 

The brokerage, in its report, noted that NTPC is targeting 30GW through SMRs to replace older coal plants. Jindal Nuclear plans 18GW by CY47 using SMRs, while Tata Power is shifting its focus towards clean energy. Reliance has allocated $5.7 billion for energy projects, including nuclear, and Adani Power aims for 30GW to transition away from coal. Engineering, procurement, and construction (EPC) firms such as L&T, BHEL, Power Mech, MTAR Technologies, and Walchandnagar Industries are expected to support large-scale deployment.

 

The reforms introduced under SHANTI, passed by Parliament on December 17, Elara believes, address critical investment barriers and align India with global standards. "This shift is seen as pivotal in attracting private capital for both research and development, as well as operations within India’s nuclear sector," said Elara in its report.

 

The SHANTI Bill, according to Elara, "liberalises India’s nuclear sector for private participation and accelerates the 100GW capacity push by CY47." The Bill repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, while establishing a robust regulatory framework to ensure the safe and secure utilisation of nuclear energy. "It allows private firms to hold equity in projects, foreign investment via joint ventures and sovereign funds, and public-private partnerships to accelerate capacity addition, including deployment of small modular reactors (SMRs)," said Elara in its report.

Liability reforms strengthen bankability

The SHANTI Bill, introduced in 2025, also lays out a more pragmatic liability framework, according to Elara. The Bill caps operator recourse rights to contractual cases or intentional damage, with tiered liability limits based on installation type. It also proposes the creation of a Nuclear Damage Claims Commission to expedite claims. "These changes address key investment deterrents, aligning India with global norms to attract private capital for R&D and operations," the report noted.

The push for 100GW nuclear by CY47

The brokerage points out that, in its push to reach 100GW of nuclear capacity by CY47, the Indian government announced a Nuclear Energy Mission in the 2025-26 Union Budget, focusing on SMRs. The mission includes an allocation of INR 200bn to develop at least five indigenously designed SMRs by CY33. Elara Capital adds, "To facilitate implementation, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act have been undertaken, easing regulations while empowering the Atomic Energy Regulatory Board (AERB) with statutory oversight for safe expansion in power, healthcare, and industry." India’s current installed nuclear capacity stands at 8.8GW, making up just 3 per cent of the country’s total electricity generation.

Top investment bets

Elara Capital has assigned a Buy rating on several leading firms, including NTPC, Power Grid Corporation, Tata Power, Adani Energy Solutions, JSW Energy, NHPC, Torrent Power, NLC India, SJVN, CESC, ACME Solar Holdings, and PTC India.

 

However, the brokerage has assigned a Reduce rating to NTPC Green Energy and the Indian Energy Exchange, while recommending an Accumulate rating for Coal India. 

Company	Ticker	Rating	Mcap (INR mn)	CMP (INR)	Target Price (INR)	Upside (%)
NTPC	NTPC IN	BUY	34,469	321	462	44
Power Grid Corporation	PWGR IN	BUY	26,871	315	456	44
Coal India	COAL IN	ACCUMULATE	26,237	385	432	12
Tata Power	TPWR IN	BUY	13,384	379	540	42
Adani Energy Solutions	ADANIENS IN	BUY	12,994	978	1649	68
JSW Energy	JSW IN	BUY	9,171	426	579	36
NTPC Green Energy	NTPCGREEN IN	REDUCE	2,844	90	104	16
NHPC	NHPC IN	BUY	8,320	30	45	50
Torrent Power	TPW IN	BUY	3,110	1275	1513	19
NLC India	NLC IN	BUY	3,710	242	320	32
SJVN	SJVN IN	BUY	3,183	29	39	35
CESC	CESC IN	BUY	2,432	166	228	37
ACME Solar Holdings	ACMESOLAH IN	BUY	1,576	235	360	53
Indian Energy Exchange	IEX IN	REDUCE	1,384	140	138	-1
PTC India	PTCIN IN	BUY	529	162	210	30

  (Source: Elara Capital)   

(Disclaimer: The views and investment tips expressed by the brokerage in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)