In a landmark shift that could redefine India’s clean energy future, the Union Cabinet has approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, paving the way for private sector participation in India’s civil nuclear power programme for the first time in decades. The Bill is expected to be tabled in Parliament during the final week of the Winter Session.
The proposed legislation aligns with the Modi government’s long-term vision of achieving 100 GW of nuclear power capacity by 2047, a critical pillar of India’s strategy to meet rising energy demand while reducing carbon emissions.
A New Era for India’s Nuclear Sector
Until now, India’s nuclear power sector has largely remained under government control due to safety, strategic, and liability concerns. The SHANTI Bill introduces a robust legal framework allowing private companies and joint ventures to build, own, operate, and even decommission nuclear power plants, under strict regulatory oversight.
The Bill follows Finance Minister Nirmala Sitharaman’s announcement in the Union Budget 2025–26 of a ₹20,000 crore Nuclear Energy Mission, focused on the research and development of Small Modular Reactors (SMRs). The government aims to operationalise five indigenously developed SMRs by 2033, positioning India as a global player in next-generation nuclear technologies.
Clear Liability Rules, Strong Government Oversight
A key feature of the SHANTI Bill is its clearly defined liability framework. Private operators will be held liable for damages arising from nuclear incidents, except in cases of extreme natural disasters, war, terrorism, or civil unrest. The maximum liability per incident is capped at the rupee equivalent of 300 million Special Drawing Rights (SDRs), with scope for revision by the Centre.
However, sensitive activities such as uranium enrichment, isotopic separation, spent fuel reprocessing, and heavy water production will remain exclusively under government control, ensuring national security and safety remain uncompromised.
Boost to Investment, Innovation, and Clean Energy
The Bill also allows private firms to import, export, and handle nuclear fuel, technology, and software, subject to government safeguards. All nuclear material will remain under Central Government accounting and international safety protocols.
Experts believe the SHANTI Bill could unlock private investment, create high-skilled jobs, strengthen India’s manufacturing ecosystem, and accelerate the country’s transition to sustainable, low-carbon energy.
With Cabinet approval secured, the SHANTI Bill is being seen as one of the most significant reforms in India’s energy policy, balancing growth, safety, and strategic control as the country moves towards its Viksit Bharat 2047 vision.
