In a landmark decision aimed at transforming India's energy landscape, the Lok Sabha on Wednesday approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This pivotal legislation opens the doors for private sector participation in nuclear power generation, a domain previously reserved for government-owned entities.
What the SHANTI Bill Proposes
The bill marks a radical shift in India's nuclear policy. It permits any company, joint venture, or government department to construct, own, operate, or decommission nuclear power plants and reactors within the country, subject to central government approval. This move is central to the government's strategy of attracting massive investments to boost nuclear power capacity to an ambitious 100 gigawatts (GW) by 2047, up from the current 8.7 GW.
Union Minister of State Jitendra Singh hailed the bill as a "milestone legislation," stating that to be a global player, India must follow global benchmarks and strategies, especially in the transition to clean energy. Nuclear power, while not renewable, is a non-fossil, cleaner alternative to coal, oil, and gas.
Major corporate players like the Adani Group, Larsen & Toubro (L&T), Tata Power, IndianOil, and ONGC have already shown interest. NTPC Ltd has taken early steps through a joint venture with the state-run Nuclear Power Corporation of India Ltd (NPCIL).
Key Changes in Liability and Regulation
One of the most significant provisions of the SHANTI Bill is the proposed removal of the contentious supplier liability clause—Section 46 of the Civil Liability for Nuclear Damage Act (CLND Act) 2010. This clause had been a major deterrent for global suppliers, particularly from the US, who feared being held liable for damages in the event of a nuclear incident.
The new bill aims to allay these concerns by excluding suppliers of components and fuel from liability, creating a more investor-friendly regime. Liability for nuclear damage will primarily rest with the plant operator, except in cases caused by events like a grave natural disaster, war, or terrorism.
The bill also refines the "right to recourse," allowing operators to seek reimbursement from suppliers only if specified in a written contract, a shift from the older act which allowed recourse if an incident resulted from defective equipment or services.
Opposition Concerns and Expert Views
Not everyone is convinced. Congress leader and Lok Sabha MP Manish Tewari opposed the bill, arguing that removing the right of recourse against suppliers could be dangerous if defective equipment is supplied. He also criticized what he called "insufficient liability caps" for operators.
However, legal and sectoral experts have largely welcomed the legislation. Amit Kapur of JSA Advocates & Solicitors noted that the bill provides a clearer licensing and liability regime, addressing long-standing legal concerns that limited private and foreign investment. Anujesh Dwivedi of Deloitte India highlighted that the bill consolidates the Atomic Energy Act, 1962, and the CLNDA 2010 into a single harmonized law.
Another progressive aspect is the exemption of research, development, and innovation activities in nuclear energy from licensing requirements. The bill's scope extends beyond power to regulate nuclear technology in healthcare, agriculture, and industry.
The SHANTI Bill now moves to the Rajya Sabha for discussion. Its passage could mark the beginning of a new atomic age for India, driven by private capital and innovation to meet soaring clean energy demands.
