In a landmark move with significant implications for both its energy future and international trade, the Indian Parliament on Thursday passed a transformative piece of legislation. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill successfully cleared both houses, setting the stage for a new era in the country's atomic energy sector.
What Does the SHANTI Bill Entail?
The newly enacted legislation introduces a paradigm shift by opening India's nuclear energy sector to private companies. For decades, this domain was the exclusive preserve of government entities. The SHANTI Bill dismantles this monopoly, creating a framework for private investment and participation in nuclear power generation, technology development, and associated industries.
Furthermore, the bill proposes a clean break from the past by seeking to repeal two foundational laws: the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act (CLND Act) of 2010. The 1962 act established the state's monopoly over atomic energy, while the 2010 liability law had been a persistent point of contention in international nuclear agreements, particularly with the United States.
The Critical Link to the Indo-US Trade Deal
The timing and provisions of the SHANTI Bill are inextricably linked to the ongoing negotiations for a comprehensive trade agreement between India and the United States. A major sticking point in deepening strategic and economic ties, including in the nuclear arena, has been the liability clause from the 2010 CLND Act. Foreign suppliers, including American companies like Westinghouse and GE-Hitachi, viewed the law's provisions as creating open-ended liability risks, chilling investment.
By proposing the repeal of the CLND Act, the Indian government directly addresses a long-standing demand from US trade negotiators and the American nuclear industry. This move is seen as a pivotal confidence-building measure that removes a significant legal hurdle. It paves the way for American companies to participate in India's ambitious nuclear energy expansion plans with greater legal certainty, thereby facilitating a key chapter in the broader trade deal discussions.
Implications and the Road Ahead
The passage of the SHANTI Bill marks one of the most significant reforms in India's energy policy. It aims to attract much-needed capital and advanced technology to help the country meet its clean energy goals and growing power demand. The involvement of private players is expected to accelerate project execution and foster innovation.
For the Indo-US relationship, this legislative action is a strong political signal of India's intent to align its regulatory framework with global practices. It demonstrates a willingness to resolve thorny issues that have hampered deeper economic integration. While the trade deal involves multiple complex sectors, resolving the nuclear liability impasse through the SHANTI Bill removes a critical bottleneck and could inject positive momentum into the final stages of negotiation.
The bill, passed on December 23, 2025, now awaits presidential assent to become law. Its implementation will be closely watched by domestic industry giants and international partners, especially the United States, as it unlocks a new chapter in India's energy security and economic diplomacy.
