In a landmark decision poised to reshape India's energy landscape, President Droupadi Murmu has granted her assent to a crucial piece of legislation. The move paves the way for unprecedented private sector participation in the nation's nuclear energy sector, a domain long held exclusively by the government.
A Historic Step for Energy Security
The legislation, officially titled the Nuclear Energy (Amendment) Bill, 2025, popularly known as the Shanti Bill, received the President's formal approval on December 21, 2025. This follows its passage in both houses of Parliament earlier in the month. The bill's core objective is to amend the existing Atomic Energy Act of 1962, which previously restricted nuclear power generation to government-owned entities.
This strategic reform is driven by India's ambitious goals to expand its clean energy capacity and ensure long-term energy security. By inviting private investment, the government aims to accelerate the deployment of nuclear power plants, which provide a stable, low-carbon baseload power source crucial for a growing economy.
How the New Framework Will Operate
The assent to the Shanti Bill establishes a new regulatory and operational framework. While opening the sector for private players, the government will retain strict control over sensitive areas. The ownership of nuclear fuel and all radioactive materials will remain solely with the government, ensuring stringent safety and security protocols are upheld.
Private companies will be permitted to participate through a public-private partnership (PPP) model or other structured collaborations with state-run giants like the Nuclear Power Corporation of India Limited (NPCIL). They can invest in the construction, operation, and maintenance of nuclear power plants. However, the actual fuel supply and management will be handled by government agencies, creating a clear separation between civilian energy generation and strategic fuel control.
The regulatory oversight will continue to rest with the Atomic Energy Regulatory Board (AERB), which will enforce the highest international standards of safety, security, and radiation protection for all projects, irrespective of the owner.
Implications for India's Energy Future
The implications of this policy shift are profound. Firstly, it unlocks a massive stream of capital required for the high-cost, long-gestation projects that nuclear power entails. This can significantly help India achieve its target of increasing nuclear power capacity from the current roughly 7,500 MWe to 22,480 MWe by 2031, as outlined in its energy plans.
Secondly, it introduces competition and potential efficiency gains from private sector expertise in project management and technology. This could lead to faster construction times and potentially lower generation costs in the long run. The move is also expected to boost the domestic nuclear component manufacturing industry, creating jobs and fostering advanced technological development.
However, experts note that success will hinge on a transparent and robust regulatory environment, competitive tariff structures, and clear liability frameworks to attract serious long-term investors. The government's role as the sole custodian of fuel is seen as a critical measure to maintain non-proliferation commitments and national security.
In conclusion, President Murmu's assent to the Shanti Bill marks a definitive turning point. It transitions India's nuclear energy programme from a purely state-driven endeavour to a collaborative national mission involving private enterprise. This bold step is designed to fuel the country's economic growth with clean, reliable power while firmly keeping the reins of safety and strategic control in the hands of the state.
