India has taken a monumental step in its fight against climate change by enacting a new law that aims to supercharge the role of nuclear power in its energy mix. The Sustainable Harnessing and Advancement of Nuclear Technology for India (Shanti) Act of 2025 is designed to dismantle long-standing barriers, attract private capital, and set an ambitious target of achieving 100 gigawatts (GW) of nuclear power capacity by the year 2047.
Three Pillars of the Nuclear Transformation
The Shanti Act introduces three fundamental shifts in India's atomic energy policy. First, it breaks the state's monopoly by allowing private sector participation in power generation, equipment manufacturing, and fuel-cycle services. This move acknowledges that public finance alone cannot fund the massive expansion needed for a low-carbon economy.
Second, the law attempts to rationalize India's nuclear liability regime. It subsumes the earlier Civil Liability for Nuclear Damage Act of 2010, which had deterred foreign suppliers by allowing plant operators to sue them for accidents. The new framework seeks to align more closely with global practices while ensuring victim rights, a delicate balance that requires clear public communication.
Third, the Act formally makes space for advanced technologies like Small Modular Reactors (SMRs). These promise lower costs, enhanced safety, and flexible deployment, potentially allowing nuclear power to be integrated near industrial clusters for direct decarbonization.
Execution Hurdles: Investment, Regulation, and Public Trust
While the legislative change is welcome, experts caution that the real test lies in ground execution. For private investors, nuclear projects are capital-intensive with long timelines. Their viability will depend on predictable tariffs, long-term power purchase agreements, and strong contract enforcement mechanisms that are yet to be fully detailed.
A critical challenge is strengthening the regulatory framework. The Atomic Energy Regulatory Board (AERB) must be empowered with greater autonomy and resources to oversee a future with multiple private operators and diverse reactor designs. Without a robust and independent regulator, the mission could falter.
Furthermore, the social dimension cannot be ignored. Past nuclear projects in India have faced public resistance due to perceived opacity. Building public trust will require early community engagement, transparent safety disclosures, and clear benefit-sharing mechanisms, possibly facilitated by a dedicated office of public advocacy.
A Climate Imperative with Cautious Optimism
From a climate perspective, nuclear energy is a powerful tool. It produces only about four tonnes of greenhouse gases per gigawatt-hour, comparable to wind energy, and provides stable, low-carbon power that can complement intermittent renewables like solar and wind.
The Shanti Act rightly views nuclear energy through the lens of India's net-zero commitments. However, for it to attract green finance, nuclear must be unambiguously integrated into climate infrastructure frameworks, allowing projects to compete for patient capital.
The authors, Amit Kapur and Sugandha Somani, partners at JSA Advocates & Solicitors, conclude that the Act's success will be determined by the investments it unlocks and the innovations it fosters. The blueprint is promising, but regulatory certainty, contractual clarity, and institutional capacity will ultimately decide if this bold reset truly powers India's clean-energy transition or stalls in implementation.
