The Lok Sabha passed a landmark piece of legislation on Wednesday, setting the stage for a significant transformation of India's civil nuclear energy sector. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, or SHANTI Bill, 2025, was approved by voice vote during the ongoing Winter Session. The passage occurred amid a walkout by most opposition members.
A Historic Policy Shift for India's Nuclear Ambitions
Introduced earlier this week by Minister of State for the Department of Atomic Energy, Dr. Jitendra Singh, the bill represents a major policy departure. For the first time, it opens specific areas of the civil nuclear energy sector to private participation. According to Dr. Singh, the legislation aims to "modernise India’s nuclear framework in line with contemporary technological, economic and energy realities." He emphasized that the core safety, security, and regulatory safeguards established under the Atomic Energy Act of 1962 would not only be retained but strengthened.
The government identified several gaps in the existing regime, including insufficient safety oversight across the entire nuclear lifecycle, limited regulatory powers, and a framework overly focused on post-accident compensation rather than prevention. The SHANTI Bill seeks to address these by creating a consolidated legal structure that brings regulation, enforcement, civil liability, and dispute resolution under a single statute.
Key Provisions of the SHANTI Bill 2025
The legislation introduces several critical changes designed to accelerate India's nuclear power growth and attract investment.
Private Sector Entry: The most notable change is the end of the government's monopoly on civil nuclear operations. The bill allows private companies and joint ventures to seek authorization for establishing and operating nuclear facilities and for transporting nuclear fuel. However, the government has kept sensitive operations like uranium enrichment, spent fuel handling, and heavy water manufacturing exclusively under central government control. Oversight of radioactive materials will also remain with the Centre to ensure stringent safety standards.
Statutory Regulator: The Atomic Energy Regulatory Board (AERB) will be granted statutory status. This empowers it with enhanced authority to inspect facilities, investigate incidents, issue binding directions, and suspend or cancel operations that fail to meet safety norms.
Lifecycle Safety and Licensing: Safety oversight will be legally embedded at every stage—from construction and operation to transport, storage, decommissioning, and waste management. A clear licensing regime will define who can build and operate nuclear facilities, strengthening accountability. Activities involving radiation exposure will require explicit safety authorization in addition to operational licenses. The bill also proposes a specialized nuclear tribunal for dispute resolution.
Rationalizing Liability to Encourage Investment
A significant aspect of the bill is the modification of India's nuclear liability framework. The law removes the clause related to the liability of suppliers of nuclear equipment. Dr. Jitendra Singh stated that the bill provides for "a pragmatic civil liability regime for nuclear damage" and does not dilute compensation for victims.
He explained that operator liability has been rationalized through graded caps linked to reactor size. This move is aimed at encouraging newer technologies like small modular reactors. A multi-layered mechanism will ensure full compensation is available. The minister clarified that supplier liability was removed after studying global practices and advances in reactor safety, while provisions for negligence and penal action remain enforceable under the law.
The overarching goal of the SHANTI Bill is to propel India towards its ambitious target of achieving 100 GW of nuclear power capacity by 2047. By inviting private investment and streamlining regulations, the government hopes to rapidly scale up nuclear energy applications across various sectors, ensuring a cleaner and more secure energy future for the nation.
