India’s Parliament has passed a major piece of legislation called the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill 2025, better known as the SHANTI Bill. This bill marks a radical shift in how the country governs its nuclear energy sector by replacing outdated laws and opening the door for private companies to play a bigger role in nuclear power generation, regulation and investment. Lawmakers and government officials describe it as a strategic reform that could boost energy security, attract investment, accelerate clean energy growth and help India reach ambitious climate goals.
What the SHANTI Bill actually does
The SHANTI Bill overhauls India’s nuclear legal framework by consolidating and replacing older statutes like the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 with a modern unified statute. Under the new law, both Indian private companies and joint ventures with government participation can apply for licences to build, own, operate and decommission nuclear power plants and related facilities. The government will retain exclusive control over highly sensitive activities such as uranium enrichment, fuel reprocessing and heavy water production.
How private participation changes the nuclear sector
Until now, the Indian civil nuclear sector was largely restricted to state owned entities. The SHANTI Bill removes this monopoly and allows a controlled entry for private players subject to strict licensing and safety requirements. This shift is aimed at attracting domestic and foreign capital, bridging technology gaps, and enabling faster deployment of nuclear power capacity, including advanced technologies like small modular reactors.
What are the benefits touted by supporters
Government proponents and supporters of the bill argue that it will help India achieve its long-term target of scaling nuclear capacity to around 100 gigawatts by 2047, a goal seen as critical to providing reliable, around-the-clock clean energy for industry and households. They say the legislation also strengthens regulatory clarity by giving statutory status to the Atomic Energy Regulatory Board and establishing new mechanisms for dispute resolution and liability management. Supporters claim these reforms can improve investor confidence and ensure technological innovation in nuclear energy.
What critics and opposition leaders are warning about
Not all reactions have been positive. Opposition politicians and safety advocates have raised serious concerns about the bill’s implications for nuclear safety, liability and accountability. Some critics described the legislation as potentially creating an imbalance by reducing supplier liability in the event of an accident and capping operator liability at amounts that may not fully cover large-scale damages. They argue this could shift long-term costs to taxpayers and weaken legal protections for communities affected by nuclear incidents. Others have said the bill was rushed through without detailed parliamentary committee scrutiny.
How safety and regulation are addressed under the new framework
While private participation is now permitted, the SHANTI Bill retains key regulatory safeguards. The Atomic Energy Regulatory Board will have enhanced statutory authority to set safety standards, enforce compliance, issue licences and conduct inspections. The bill also proposes a multi-layered liability framework and compensation mechanisms that include operator liability, insurance mandates and potential government support through a Nuclear Liability Fund.
Why this reform matters for India’s energy future
The SHANTI Bill arrives at a time when India is increasing its focus on clean and reliable power sources to meet rising demand driven by economic growth, digital infrastructure and industrialisation. Nuclear energy, which produces low carbon emissions and offers steady baseload power, is seen as a key component of India’s energy transition strategy. If implemented effectively, the new law could catalyse growth in nuclear capacity, stimulate technological advances and attract private investment into a sector that has long been hampered by regulatory restrictions.