SHANTI Bill, 2025

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 has been introduced in the Lok Sabha to overhaul India’s nuclear energy laws. It replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010, creating a single legal framework that allows private and foreign participation in the civil nuclear sector while retaining state control over strategic nuclear activities. The bill aims to strengthen regulatory oversight, streamline liability provisions, and support advanced nuclear technologies to achieve India’s clean energy and net-zero targets.

Key Provisions of the SHANTI Bill

1. Replacement of Existing Nuclear Laws

The bill repeals both the Atomic Energy Act (1962) and CLND Act (2010), creating a consolidated legal framework for civil nuclear energy. This simplifies regulatory procedures, liability processes, and governance, reducing bureaucratic complexity that previously slowed nuclear projects.

Key Point: Single legal framework simplifies governance and regulatory compliance for nuclear projects.

2. Enabling Private and Joint Venture Participation

For the first time since Independence, the bill allows private Indian companies, joint ventures, and foreign entities to build, own, operate, and decommission nuclear power plants. This ends the monopoly of Nuclear Power Corporation of India Limited (NPCIL) in nuclear plant operations and opens the sector to much-needed capital and technical expertise.

Key Point: Private sector entry is essential to achieve India’s ambitious nuclear capacity goals.

3. Retention of Strategic State Control

While private participation is allowed, the government retains control over sensitive areas such as nuclear fuel production, heavy water manufacturing, and radioactive waste management. This ensures that national security and non-proliferation commitments are not compromised.

Key Point: Balances private participation with state control over strategic nuclear activities.

4. Statutory Status for Nuclear Regulator

The bill grants statutory status to the Atomic Energy Regulatory Board (AERB) and makes it accountable to Parliament. This strengthens the independence of the regulator, enhances transparency, and ensures stringent safety oversight for nuclear operations.

Key Point: Independent and accountable regulation is crucial for safety and public confidence.

5. Revised Nuclear Liability Framework

The SHANTI Bill removes supplier liability and caps operator liability based on installed plant capacity, rather than actual damage caused by an accident. Operators alone are responsible for compensation. This aligns India’s nuclear liability framework with international conventions and provides financial certainty for investors.

Key Point: Liability reforms encourage investment but raise concerns about public accountability in accidents.

6. Dedicated Atomic Disputes Tribunal

The bill proposes the creation of a specialized atomic disputes tribunal to resolve disputes related to nuclear operations. This provides regulatory certainty and increases investor confidence.

Key Point: A dedicated tribunal improves dispute resolution efficiency and clarity.

7. Facilitation of Advanced Nuclear Technologies

By clarifying regulations and enabling private participation, the bill encourages the deployment of Small Modular Reactors (SMRs) and indigenous reactor designs. This supports India’s transition to clean energy and strengthens long-term energy security.

Key Point: Promotes innovation and adoption of advanced nuclear technologies.

Core Concerns

• Weakening Accountability: Removing supplier liability and capping operator penalties may reduce accountability in the event of nuclear accidents.

• “Polluter Pays” Principle: Liability linked to plant size rather than actual damage may compromise this principle.

• Public Risk: Private firms may benefit financially while accident costs and long-term risks fall on the State and citizens.

• Historical Trust Issues: Past industrial disasters, such as the Bhopal Gas Tragedy (1984), highlight the need for stringent liability and safety norms.

India’s Nuclear Energy Landscape (2025)

• Current nuclear capacity: 8.18 GW, target: 100 GW by 2047.

• More than 20 operational reactors, all managed by NPCIL; additional projects planned.

• Focus on R&D for Small Modular Reactors (SMRs) and advanced technologies like Bharat Small Reactors, Molten Salt Reactors, and High-Temperature Gas-Cooled Reactors.

• Goal: 5 operational indigenously designed SMRs by 2033.

Need for Reforms in Nuclear Governance

1. Ambitious Capacity Targets: India aims to increase nuclear capacity to 22 GW by 2032 and 100 GW by 2047; NPCIL alone cannot meet this target.

2. Large Financing Gap: Achieving 100 GW requires ~Rs 15 lakh crore; government budget allocation is only Rs 20,000 crore.

3. Project Delays: Private participation can improve project execution and efficiency.

4. Technology & Innovation Needs: Accelerates deployment of SMRs and global best practices.

5. Fuel Security: Private sector involvement can strengthen uranium mining, processing, and imports.

6. Energy Security & Climate Goals: Nuclear complements renewable energy, providing low-carbon baseload power.

Measures to Strengthen Nuclear Governance

• Regulatory Independence: Ensure AERB operates without political interference and has financial autonomy.

• Balance Safety & Investment: Review liability caps periodically and index them to risk and inflation.

• Public Transparency: Mandatory disclosure of safety audits, emergency protocols, and accident reporting.

• Centre–State Coordination: Clear protocols for nuclear emergencies involving private operators.

• Waste Management: Establish enforceable rules for radioactive waste disposal and plant decommissioning.

Conclusion

The SHANTI Bill, 2025, represents a major reform in India’s nuclear sector, unlocking capital, technology, and execution capacity from the private sector. However, for these reforms to succeed, strong regulatory oversight, transparent safety measures, and a balance between investor incentives and public accountability are essential. If implemented carefully, these reforms can help India achieve its nuclear energy targets, ensure energy security, and support the net-zero 2070 climate goal.