The Lok Sabha this week passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, marking a major
shift in India’s nuclear energy framework. Introduced by Minister of State Jitendra Singh on December 15 and passed amid opposition walkouts, the bill now moves to the Rajya Sabha for consideration. The legislation repeals the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, replacing them with a single, modern framework aimed at strengthening regulation, improving safety oversight, and opening the sector to private participation. Top 10 Things to Know About the SHANTI Bill 2025 Full name and objective SHANTI stands for Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India. The bill targets scaling nuclear power capacity to 100 GW by 2047, up from about 8 GW today, to support clean energy goals, net-zero emissions by 2070, and reliable baseload power for industries such as AI and data centres. Private sector entry For the first time, private companies and joint ventures are allowed to build, operate, and decommission nuclear power plants. This ends the long-standing monopoly of NPCIL, though sensitive activities like uranium enrichment, reprocessing, and waste management remain under government control. Stronger regulator The bill grants statutory backing to the Atomic Energy Regulatory Board (AERB), giving it clearer authority to inspect facilities, investigate incidents, and order shutdowns in case of safety violations. Lifecycle safety oversight Safety regulation is mandated across the entire lifecycle of nuclear facilities—from design and construction to operation and decommissioning—with explicit approvals required for radiation-related activities. Liability framework overhaul The controversial supplier liability clause is removed, addressing a key deterrent for foreign vendors. Operator liability is capped based on reactor size, a move expected to support small modular reactors (SMRs). Victim compensation remains protected through a multi-layered liability fund, with government backing for extreme cases. Dedicated nuclear tribunal A specialised tribunal will handle disputes related to nuclear liability and contracts, aiming for faster and more expert resolution. Boost to innovation and R&D The law promotes research in SMRs, advanced nuclear technologies, and non-power applications such as healthcare, agriculture, and industrial uses. Foreign investment opening The bill allows 49–100% foreign direct investment in specific segments, depending on activity, to attract global capital and technology while keeping strategic control with the state. Why now? The government argues existing laws were outdated, fragmented, and discouraging investment. Rising energy demand, climate commitments, and the need for stable clean power prompted the overhaul. Key controversies Opposition parties have flagged diluted liability provisions, the absence of detailed parliamentary scrutiny, and safety risks linked to privatisation—often citing the Bhopal gas tragedy. The government maintains that safety standards remain “non-negotiable.” If cleared by the Rajya Sabha, the SHANTI Bill could unlock over $200 billion in nuclear investments, accelerate clean energy deployment, and reduce reliance on fossil fuel imports. Private-sector efficiency and advanced technologies like SMRs could help India meet ambitious capacity targets faster. However, critics warn that faster expansion must not compromise safety or accountability. The bill represents the end of more than six decades of near-total state control over nuclear power and positions atomic energy as a stronger pillar alongside renewables in India’s energy mix. The outcome of the Rajya Sabha debate will be crucial, as it will shape the future of India’s nuclear sector and its role in the country’s long-term development strategy.
