The Rajya Sabha on Thursday passed landmark legislation that fundamentally reshapes India's nuclear energy landscape. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 received parliamentary approval, paving the way for private sector participation in nuclear power generation for the first time.
A Historic Shift in Nuclear Policy
The bill dismantles a decades-old monopoly held by government-owned companies. It now permits any company, joint venture, or entity authorized by the Centre to construct, own, operate, or decommission nuclear power plants and reactors within the country. This legislative move comes as part of the government's ambitious goal to increase nuclear power's share in India's energy mix, targeting an installation of 100 GW of nuclear capacity by 2047, a massive leap from the current 8.7 GW.
Union Minister of State for Atomic Energy, Jitendra Singh, championed the bill, stating that India is now a "first line nation" offering cues for others to follow, rather than being a follower. He emphasized nuclear energy's role as a reliable 24x7 clean energy source, crucial for providing grid stability as intermittent renewables like solar and wind expand.
Key Provisions and Liability Framework
A central and contentious feature of the bill is the revision of liability norms. The legislation proposes to exclude suppliers of components and fuel from liability in the event of nuclear damage. It seeks to eliminate the contentious Section 46 of the Civil Liability for Nuclear Damage Act (CLND Act), a clause that had long concerned global equipment suppliers.
Under the new framework, the operator of the nuclear installation will be primarily liable for damages, with a proposed cap of ₹3,000 crore. However, operators retain a 'right to recourse' to seek reimbursement from suppliers for faulty components. The bill also provides exemptions for operators in cases of damages caused by exceptional natural disasters, acts of war, or terrorism.
Opposition Concerns and Debate
The bill was passed amid strong objections from the Opposition. Amendments proposed to send the bill to a select committee were rejected. Opposition leaders voiced significant concerns over diluting the liability regime and the lack of a robust regulatory framework.
Priyanka Chaturvedi of Shiv Sena (UBT) argued that capping liability at ₹3,000 crore was insufficient, citing the hundreds of billions spent on cleanup after Fukushima and Chernobyl. She warned that the bill removes accountability from both suppliers and operators, potentially leaving citizens to bear the cost of any future disaster.
Congress leader Jairam Ramesh questioned the government's vision, suggesting the bill primarily benefits the private sector. He also urged a strategic shift towards thorium-based fuel cycles, given India's rich thorium reserves, to reduce dependence on imported uranium.
Industry Interest and Future Roadmap
In anticipation of the sector's opening, major Indian corporate groups like the Adani Group, Larsen & Toubro (L&T), and Tata Power have already expressed interest in entering the nuclear energy space. The bill also simplifies licensing, exempting research and development activities from license requirements to foster innovation.
With the Lok Sabha having cleared the bill on Wednesday and the Rajya Sabha passing it on Thursday, the legislation now only awaits the President's assent to become law. This reform is positioned as a critical step for India to meet its clean energy and energy security goals, transforming its nuclear sector from a state-controlled enterprise into a collaborative arena with private investment.
