SHANTI Bill 2025: Private Sector In Nuclear Power - Key Highlights of India's Landmark Law-In-Making

In a significant move toward energy self-reliance, Union Minister Dr. Jitendra Singh introduced 'The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025', popularly known as the SHANTI Bill, in the Lok Sabha on December 15, 2025.

Officials hail it as a landmark reform that ends decades of government-only control over nuclear power while setting the stage for 100 GW capacity by 2047.

According to PRS Legislative Research, the SHANTI Bill consolidates and replaces two major existing laws: the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. By merging these into a single framework, the government aims to support the expanded use of nuclear energy while maintaining high safety standards.

Opening the Doors to Private Participation

One of the most significant shifts in the Bill is the end of the long-standing government monopoly over nuclear activities. Under the previous 1962 Act, activities like mining atomic minerals and operating nuclear plants were restricted to central government entities.

According to PRS Legislative Research, the 2025 Bill allows the central government to issue licences to:

• Indian companies (excluding those incorporated outside India).
• Joint ventures between government and private entities.
• Other persons specifically permitted by the government.

These licensed entities can now build, own and operate nuclear plants and reactors. They are also permitted to handle the fabrication, transport and storage of nuclear fuel.

However, strategic activities such as fuel enrichment and the reprocessing of spent fuel will remain exclusively under the control of the Central Government, ANI reported.

A New Tiered Liability Framework

The Bill introduces a pragmatic shift in how compensation and liability are handled in the event of a nuclear incident. While it retains the "no-fault liability" principle, where the operator is liable regardless of proven negligence; it changes how much they must pay.

As per PRS Legislative Research, the new Bill replaces the previous flat liability cap of Rs 1,500 crore with a tiered system. This cap is now based on a reactor's power capacity, ranging from Rs 100 crore to Rs 3,000 crore.

A critical change noted by ANI is the removal of the operator's right to recover compensation from suppliers for defective equipment. Previously, suppliers could be held liable under certain conditions, which often deterred global participation. The new Bill focuses liability on the operator, who must maintain mandatory insurance or financial security to cover potential claims.

Strengthening Regulatory Oversight: AERB and Appeals

To ensure safety and transparency, the Bill provides formal statutory status to the Atomic Energy Regulatory Board (AERB). Previously functioning under executive orders, the AERB will now have enhanced powers for inspection and enforcement as a central regulator.

The Bill also establishes a new mechanism for resolving disputes:

• Atomic Energy Redressal Advisory Council: This body will hear initial appeals against decisions made by the AERB or the central government.
• Appellate Tribunal for Electricity: If a party is dissatisfied with the Council’s decision, further appeals will be directed here.
• Nuclear Damage Claims Commission: This specialised body will be established to adjudicate compensation claims arising from nuclear incidents.

Vision for 2047: Clean Energy and Modern Technology

The SHANTI Bill is positioned as a cornerstone of India’s transition to clean energy. By enabling the participation of public and private sectors, the government aims to provide round-the-clock power for advanced sectors like Artificial Intelligence and Quantum Computing.

The legislation also focuses on the wider application of nuclear science in healthcare, agriculture and food processing. Furthermore, it encourages research into emerging technologies, such as Small Modular Reactors (SMRs) and the long-term utilisation of India's abundant thorium resources.

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