Govt tables SHANTI Bill to open nuclear power to private players: What is bill all about- Explained
If enacted, the Bill would dismantle long-standing legal barriers, open nuclear power generation to private companies, and overhaul the liability regime that has constrained investment for more than a decade
- Dec 17, 2025,
- Updated Dec 17, 2025 7:36 AM IST
The government on Monday introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, in the Lok Sabha, signalling a fundamental reset of India’s civil nuclear framework. If enacted, the Bill would dismantle long-standing legal barriers, open nuclear power generation to private companies, and overhaul the liability regime that has constrained investment for more than a decade.
At its core, the SHANTI Bill aims to transition India from a tightly controlled, state-dominated nuclear sector to a more diversified model that permits regulated private participation while maintaining government control over sensitive activities.
Why was the SHANTI Bill introduced?
India’s existing nuclear laws, the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, have long been flagged by industry and foreign suppliers as deterrents to investment. The liability law, in particular, placed open-ended exposure on equipment suppliers, making global reactor manufacturers reluctant to enter the Indian market.
The government states that the new Bill aligns with India’s climate commitments, including its net-zero target by 2070 and an ambition to scale nuclear capacity to 100 gigawatts by 2047, up from approximately 8.2 gigawatts today.
“The Bill seeks to provide for a pragmatic civil liability regime for nuclear damage and to confer statutory status to the Atomic Energy Regulatory Board,” Minister of State in the PMO Jitendra Singh said while introducing the legislation.
What does the SHANTI Bill change?
1. Private sector entry into nuclear power
For the first time, Indian private companies will be allowed to apply for licences to build, own, operate and decommission nuclear power plants and reactors, functions that have so far been largely restricted to the Nuclear Power Corporation of India and its public-sector joint ventures.
However, only Indian-incorporated companies will be eligible. Firms incorporated abroad or controlled by foreign entities will not be permitted to hold licences.
2. Overhaul of nuclear liability rules
The Bill limits liability for a nuclear incident strictly to the plant operator and explicitly exempts equipment suppliers, addressing a key concern raised by global vendors.
It caps the maximum liability for each incident at the rupee equivalent of 300 million Special Drawing Rights (SDRs), in line with international norms. Operators will be required to maintain insurance or liability funds ranging from about $11 million to $330 million, depending on reactor size. A separate nuclear liability fund will cover excess claims, with the government stepping in if damages exceed the cap.
Certain exclusions are also specified: operators will not be liable for damage to the nuclear installation under construction, other installations on the same site, related property, or the means of transport carrying nuclear material at the time of an incident.
3. Expanded scope for nuclear-related activities
Indian private companies would be allowed to participate in several downstream and support activities, including nuclear fuel fabrication, transportation and storage of nuclear and spent fuel, and the import or export of prescribed equipment, technology or software.
Sensitive areas such as fuel enrichment, spent-fuel reprocessing and heavy water production will remain exclusively under government control.
What changes in regulation and safety?
A major institutional reform proposed in the Bill is granting statutory status to the Atomic Energy Regulatory Board (AERB), which currently functions under an executive order. This move is aimed at strengthening regulatory independence, enhancing safety oversight, and fostering public confidence.
The Bill also proposes setting up an Atomic Energy Redressal Advisory Council to resolve disputes related to nuclear operations.
Penalties for violations range from Rs 5 lakh for minor breaches to Rs 1 crore for serious offences. All operators, public or private, will require government licences and safety clearances from the AERB.
Why is the Bill significant?
The SHANTI Bill is central to India’s strategy to scale up clean, baseload power as renewable energy expands. To reach its 100 GW nuclear target by 2047, the government has argued that private capital, advanced technology and global partnerships will be essential.
Major Indian conglomerates, such as Tata Power, Adani Power, and Reliance Industries, have already shown interest in nuclear energy. Global suppliers, including Westinghouse, GE-Hitachi, France’s EDF and Russia’s Rosatom, have also indicated willingness to partner with Indian firms under a clearer liability framework.
The government on Monday introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, in the Lok Sabha, signalling a fundamental reset of India’s civil nuclear framework. If enacted, the Bill would dismantle long-standing legal barriers, open nuclear power generation to private companies, and overhaul the liability regime that has constrained investment for more than a decade.
At its core, the SHANTI Bill aims to transition India from a tightly controlled, state-dominated nuclear sector to a more diversified model that permits regulated private participation while maintaining government control over sensitive activities.
Why was the SHANTI Bill introduced?
India’s existing nuclear laws, the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, have long been flagged by industry and foreign suppliers as deterrents to investment. The liability law, in particular, placed open-ended exposure on equipment suppliers, making global reactor manufacturers reluctant to enter the Indian market.
The government states that the new Bill aligns with India’s climate commitments, including its net-zero target by 2070 and an ambition to scale nuclear capacity to 100 gigawatts by 2047, up from approximately 8.2 gigawatts today.
“The Bill seeks to provide for a pragmatic civil liability regime for nuclear damage and to confer statutory status to the Atomic Energy Regulatory Board,” Minister of State in the PMO Jitendra Singh said while introducing the legislation.
What does the SHANTI Bill change?
1. Private sector entry into nuclear power
For the first time, Indian private companies will be allowed to apply for licences to build, own, operate and decommission nuclear power plants and reactors, functions that have so far been largely restricted to the Nuclear Power Corporation of India and its public-sector joint ventures.
However, only Indian-incorporated companies will be eligible. Firms incorporated abroad or controlled by foreign entities will not be permitted to hold licences.
2. Overhaul of nuclear liability rules
The Bill limits liability for a nuclear incident strictly to the plant operator and explicitly exempts equipment suppliers, addressing a key concern raised by global vendors.
It caps the maximum liability for each incident at the rupee equivalent of 300 million Special Drawing Rights (SDRs), in line with international norms. Operators will be required to maintain insurance or liability funds ranging from about $11 million to $330 million, depending on reactor size. A separate nuclear liability fund will cover excess claims, with the government stepping in if damages exceed the cap.
Certain exclusions are also specified: operators will not be liable for damage to the nuclear installation under construction, other installations on the same site, related property, or the means of transport carrying nuclear material at the time of an incident.
3. Expanded scope for nuclear-related activities
Indian private companies would be allowed to participate in several downstream and support activities, including nuclear fuel fabrication, transportation and storage of nuclear and spent fuel, and the import or export of prescribed equipment, technology or software.
Sensitive areas such as fuel enrichment, spent-fuel reprocessing and heavy water production will remain exclusively under government control.
What changes in regulation and safety?
A major institutional reform proposed in the Bill is granting statutory status to the Atomic Energy Regulatory Board (AERB), which currently functions under an executive order. This move is aimed at strengthening regulatory independence, enhancing safety oversight, and fostering public confidence.
The Bill also proposes setting up an Atomic Energy Redressal Advisory Council to resolve disputes related to nuclear operations.
Penalties for violations range from Rs 5 lakh for minor breaches to Rs 1 crore for serious offences. All operators, public or private, will require government licences and safety clearances from the AERB.
Why is the Bill significant?
The SHANTI Bill is central to India’s strategy to scale up clean, baseload power as renewable energy expands. To reach its 100 GW nuclear target by 2047, the government has argued that private capital, advanced technology and global partnerships will be essential.
Major Indian conglomerates, such as Tata Power, Adani Power, and Reliance Industries, have already shown interest in nuclear energy. Global suppliers, including Westinghouse, GE-Hitachi, France’s EDF and Russia’s Rosatom, have also indicated willingness to partner with Indian firms under a clearer liability framework.