It’s no secret that over the years, the Centre has taken several steps towards increasing privatisation across sectors, be it banking, PSUs or aviation. Another key sector has now come to the fore as the governments looks at opening up the nuclear sector to private companies and entities.
For the same, the government tabled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India or the SHANTI Bill, 2025, in the Lok Sabha, which has now been passed. The lower house on Wednesday (December 17, 2025) gave its assent to the bill, during the ongoing Winter session.
SHANTI Bill, 2025 proposes the most far-reaching reform of India’s civil nuclear framework in over six decades. If enacted, it would dismantle the long-standing state monopoly over nuclear power and allow private Indian companies to play a direct role in building and operating nuclear plants.
Why has the government introduced the SHANTI Bill now?
India’s nuclear sector has been governed by two legacy laws – the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. While these laws ensured tight state control, they also discouraged private and foreign investment due to regulatory rigidity and open-ended liability risks.
At its core, the Bill seeks to modernise outdated laws, unlock stalled investments, and position nuclear energy as a central pillar of India’s clean energy transition. With India committed to achieving net-zero emissions by 2070 and scaling nuclear capacity to 100 gigawatts by 2047, the government argues that existing framework is no longer adequate.
To meet these objectives, the Bill emphasises the need to harness indigenous nuclear resources more fully and enable active participation of both public and private sectors, while also positioning India as a contributor to the global nuclear energy ecosystem. SHANTI Bill aims to remove structural bottlenecks and align India’s nuclear laws with international best practices.
Which laws will the SHANTI Bill repeal or replace?
If passed by Parliament, the Bill will repeal both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. In their place, it introduces a consolidated and updated legal framework covering licensing, liability, safety regulation, private participation, and dispute resolution in civil nuclear activities.
This reset is designed to reassure investors and technology partners while retaining government oversight over sensitive nuclear operations.
How does the Bill change nuclear liability rules?
One of the most significant reforms in the SHANTI Bill is the restructuring of civil nuclear liability. Under the proposed law, liability for a nuclear incident will rest solely with the plant operator, explicitly excluding equipment suppliers. This provision addresses a major concern that had kept foreign vendors away from India’s nuclear market.
Opening the entry gates not just for private players but foreign vendors too, SHANTI Bill, 2025 caps maximum liability for each nuclear incident at the rupee equivalent of 300 million Special Drawing Rights (SDRs), in line with global conventions. Operators will be required to maintain insurance or liability funds ranging from approx $11 million to $330 million, depending on reactor capacity.
If damages exceed the capped amount, a dedicated nuclear liability fund will cover additional claims, with the government stepping in as the final guarantor.
SHANTI Bill 2025: What role will private companies be allowed to play?
For the first time, Indian private companies will be permitted to apply for licences to build, own, operate and decommission nuclear power plants and reactors. They will also be eligible to participate in nuclear fuel fabrication, transportation and storage of nuclear and spent fuel, and the import or export of approved nuclear equipment, tech and software.
With this, it is important to note here that companies incorporated outside India or controlled by foreign entities will not be allowed to hold licences, ensuring strategic control remains domestic.
Government’s role: Which nuclear activities will remain under?
Despite opening up large parts of the sector, the Bill draws clear red lines. Sensitive activities such as uranium enrichment, spent-fuel reprocessing and heavy water production will continue to remain exclusively under government control.
Further, the SHANTI Bill grants statutory status to the Atomic Energy Regulatory Board (AERB), which currently operates under an executive order. By giving the regulator a legal foundation, the government aims to strengthen safety enforcement, transparency and public confidence.
The proposed Atomic Energy Redressal Advisory Council will provide a structured mechanism to resolve disputes related to nuclear operations, liability and compliance.
What will be the penalties for violations?
To ensure strict compliance, the SHANTI Bill introduces graded penalties. Minor violations could attract fines starting at Rs 5 lakh, while serious breaches could result in penalties of up to Rs 1 crore. All operators, whether public or private, will require government licences and safety clearances from the AERB.
How does SHANTI Bill support India’s climate and energy goals?
Nuclear energy is seen as a stable, low-carbon power source essential for meeting India’s long-term climate commitments. With current nuclear capacity at about 8.2 GW, scaling up to 100 GW by 2047 will require massive capital, advanced technology and private sector participation.
The SHANTI Bill aligns nuclear expansion with India’s broader clean energy strategy, helping reduce reliance on fossil fuels.
Have any private players shown interest in nuclear sector?
Major Indian conglomerates such as Tata Power, Adani Power and Reliance Industries have already expressed interest in nuclear energy. International suppliers including Westinghouse, GE-Hitachi, France’s EDF and Russia’s Rosatom have also indicated willingness to partner with Indian firms.
If enacted, the SHANTI Bill, 2025 would mark a turning point in India’s nuclear policy, ending decades of exclusive state control, addressing investor concerns, and unlocking billions of dollars in potential investment.
Union Minister of Science and Technology Dr. Jitendra Singh said private participation needed to meet India’s 2047 clean energy goals. He also rejected the view that the Bill signals a retreat from public sector capability, pointing to a nearly 170% hike in the Department of Atomic Energy’s budget over the past decade and a doubling of installed nuclear capacity since 2014.