NTPC suggests four amendments to draft SHANTI rules for nuclear power

NTPC seeks key changes in draft SHANTI rules, including faster licensing, removal of new-company limits and utility-agnostic approvals

Power generator NTPC Ltd has sought four major changes in the draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) rules and regulations, a senior company official told Business Standard.

 

These include removal of the three-year limit in the definition of new companies, utility-agnostic approval process, halving licensing timelines and exemption from separate permissions for importing equipment once the technology design is approved.

 

He said the changes have been suggested by NTPC in its submission made to the Department of Atomic Energy (DAE) which had shared the draft SHANTI Act rules and regulations last month for stakeholder comments.

 

“We have sought a change in the definition of new companies. The draft says it is three years (of existence). We are suggesting that the limit should be removed,” the official said.

 

Any company seeking licence is required to have financial, managerial and technical capabilities, besides site and technology-related experience.

 

New companies are unlikely to have such capabilities in the absence of a strong balance sheet.

 

The official said in the first three years of incorporation, such a firm can get support from the parent company. However, after that it will not be able to get a licence because of these capability requirements.

 

The draft rules define “newly-formed entity” as an eligible person which has been in existence for three years or less on the date of application for licence.

 

For the purpose of assessment of capabilities for grant of licence, the applicant must demonstrate financial, managerial and technical capabilities, the draft said.

 

NTPC is planning to achieve 30 gigawatt (Gw) of nuclear power generation by 2047 through Anu Shakti Vidyut Nigam Limited (ASHVINI), a joint venture between NTPC and Nuclear Power Corporation of India Limited (NPCIL). It would also be achieved through its wholly-owned nuclear subsidiary, NTPC Parmanu Urja Nigam Limited (NPUNL), which was incorporated in January 2025.

 

ASHVINI is in the process of establishing a 2,400 Mw nuclear power project in Banswara district of Rajasthan, called Mahi Banswara Rajasthan Atomic Power Project (MBRAPP).

 

According to the current projections, initial testing of the project's first 700 Mw unit will begin by FY33.

 

“For imported technology, DAE provides licence for design approval to technology companies but when it comes to regulation, Atomic Energy Regulatory Board (AERB) only allows utilities but not technology companies. There is a contradiction between rules and regulations. A utility-agnostic approval process will make technology cheaper and time will be reduced,” the official added.

 

He added that NTPC has also proposed reducing the time limit for granting a licence from 180 days to 90 days, while cutting the acceptance period from 60 days to 30 days.

 

“The licence for a facility or a plant or a mine shall be issued within a period of 180 days and related permission within 60 days from the date of its admittance,” the draft rules stated.

 

The official also said that for deploying imported technology, permission is required, according to the draft rules.

 

“NTPC is saying that when the design is already approved, there is no need for permission for equipment import,” he said.

 

The DAE had published the draft SHANTI Rules, 2026 on August 14 as operational guidelines to implement the SHANTI Act, 2025. This Act seeks to open up the country's nuclear power sector to private and foreign participation.

The recommendations

 

• Remove 3-year limit in the definition of new companies
• Reduce licence-approval timeline from 180 days to 90 days, and the acceptance period from 60 days to 30 days
• Utility-agnostic approval process for cheaper and faster deployment
• Remove need for permission for equipment import when imported technology is approved