Splitting The Atom & Monopoly: How India Plans To Make Peace With Nuclear Power Using SHANTI Bill

The Union Government on Monday took a historic step towards overhauling India’s energy landscape by tabling the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, in the Lok Sabha. Introduced by Minister of Science and Technology, Dr Jitendra Singh, the legislation potentially represents the most significant reform in the nuclear sector since independence, seeking to repeal the decades-old Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage (CLND) Act, 2010.

The primary objective of the SHANTI Bill is to end the state’s monopoly over nuclear power and pave the way for private sector participation. Under the existing 1962 Act, only government-owned companies like the Nuclear Power

Corporation of India (NPCIL) were permitted to build and operate nuclear plants. The new bill proposes to allow Indian private companies to apply for licenses to build, own, operate, and eventually decommission nuclear reactors. This shift is seen as essential for achieving India’s ambitious target of reaching 100 gigawatts (GW) of nuclear capacity by 2047, a massive leap from the current installed capacity of approximately 8.2 GW.

Solving the ‘Right of Recourse’ Bottleneck

A critical highlight of the bill is its “pragmatic” approach to the contentious issue of civil liability. For years, international suppliers from the US, France, and Russia were deterred from entering the Indian market due to Section 17(b) of the 2010 CLND Act, which allowed operators to seek damages from suppliers in the event of an accident—a “right of recourse” that is absent in most international nuclear legal frameworks.

The SHANTI Bill addresses this by limiting the liability for nuclear incidents strictly to the operators and explicitly exempting equipment suppliers from long-term legal risks. To ensure victim compensation, the bill mandates a graded liability cap based on the size of the installation:

• Rs 3,000 crore for large reactors (above 3,600 MW thermal power).
• Rs 100 crore for smaller installations and transportation. The government will also establish a Nuclear Liability Fund to cover excess claims, aligning India with the International Atomic Energy Agency (IAEA) standards and the Convention on Supplementary Compensation (CSC).

Innovation and Strategic Focus

The bill places a heavy emphasis on Small Modular Reactors (SMRs). These factory-built, smaller units are seen as the future of industrial decarbonisation, providing 24/7 carbon-neutral “baseload” power for energy-intensive sectors like data centres, steel, and cement plants. While the government will retain exclusive control over “sensitive” activities—such as uranium enrichment, spent-fuel reprocessing, and heavy water production—private players will be encouraged to participate in fuel fabrication, mineral exploration, and research and development.

Furthermore, the SHANTI Bill grants statutory status to the Atomic Energy Regulatory Board (AERB), strengthening its independence as an oversight body. By creating a unified, modern legal framework, the government aims to position India as a global hub for nuclear technology, ensuring the country meets its Net Zero by 2070 commitments while supporting the massive power demands of an AI-driven economy.