In a landmark move to secure its energy future, India has taken a decisive step towards opening its nuclear power sector to private and foreign investment. The government, which has long championed nuclear energy as a stable and clean source of baseload power, has introduced legislation designed to unlock the capital and technology needed for massive expansion.
The SHANTI Bill: Unlocking a Closed Sector
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI), tabled in Parliament on Monday, December 18, 2025, is the cornerstone of this new strategy. The bill seeks to transform one of India's most closed sectors by permitting up to 49% foreign direct investment (FDI) in specific nuclear activities. This move is critical for attracting the substantial funds required to meet ambitious capacity targets.
Furthermore, the SHANTI Bill addresses a long-standing obstacle by removing a contentious clause from the Civil Liability for Nuclear Damage Act (CLNDA). That clause had held equipment suppliers liable for accidents, acting as a major deterrent for foreign companies and even causing uncertainty for Indian sub-vendors. This reform is expected to finally allow India to leverage the full potential of international partnerships, like its historic nuclear deal with the United States.
Ambitious Targets and the SMR Opportunity
India's nuclear ambitions are clearly defined. The nation has set a short-term goal to increase nuclear power capacity to 22.5 gigawatts (GW) by 2032, with a long-term vision of reaching 100 GW by 2047. Currently, nuclear energy contributes a mere 3% to the country's total electricity generation, highlighting the scale of the planned growth.
A key technology in this expansion is small modular reactors (SMRs). These next-generation reactors offer significant advantages:
- Lower capital costs compared to traditional large plants.
- Shorter construction timelines.
- Enhanced safety features, including passive shutdown systems.
- Reduced fuel requirements and flexibility in siting.
The government's commitment to adding 22,480 MW in the next five years makes SMRs a compelling option. Reports suggest foreign investors, including sovereign funds from West Asia, have shown early interest in financing SMR projects and participating in their manufacturing value chain. The SHANTI Bill's conducive environment could accelerate the deployment of this state-of-the-art technology through partnerships with countries like the US and Russia.
Safety First and a Seat at the Global Table
The opening of the sector is firmly coupled with reinforced safety protocols. Under the SHANTI legislation, all entities involved in nuclear production must obtain safety authorisation from the Atomic Energy Regulatory Board (AERB). This ensures that private participation does not compromise the stringent safety standards developed over decades, which have been further strengthened post the 2011 Fukushima tragedy.
By integrating into the global nuclear supply chain, India aims to gain a greater say in international safety and technology conversations. Opening its value chain is not just about building reactors at home; it is about becoming a significant player in the global civil nuclear ecosystem.
In conclusion, the SHANTI Bill represents a strategic pivot for India's energy policy. By carefully balancing private investment with robust regulatory oversight, India is laying the groundwork to make nuclear power a major pillar of its energy security, helping to meet rising demand with a reliable, low-carbon source of electricity.
