Modi govt unveils SHANTI Bill: Will private players power India’s nuclear leap?

India has taken a decisive step toward reshaping its clean-energy future, with the Union Cabinet on Friday approving the ambitious Atomic Energy Bill, 2025 — branded as SHANTI (Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India). The move signals a historic shift in India’s atomic energy policy, long dominated exclusively by the state. 

Chaired by Prime Minister Narendra Modi, the Cabinet’s approval marks one of the most significant reforms in the sector since India’s atomic programme began. The SHANTI Bill lays the foundation for a unified and modern legal framework for nuclear energy — consolidating multiple existing laws, addressing regulatory gaps, and creating a structure that supports expansion at scale. 

Crucially, the legislation opens India’s tightly controlled nuclear ecosystem to private participation, breaking a decades-old monopoly of the Department of Atomic Energy (DAE). This includes core activities such as exploration of atomic minerals, fuel fabrication, equipment manufacturing, and potentially even aspects of plant operations. 

Why the bill matters 

India has set an ambitious target of achieving 100 GW of nuclear power capacity by 2047, nearly a tenfold increase over current levels. Meeting this goal will require massive capital infusion, cutting-edge technology, and accelerated project timelines — conditions policymakers believe cannot be fulfilled by government funding alone. 

The SHANTI Bill is designed to position nuclear power as a central pillar of India’s long-term decarbonisation strategy, especially as the country seeks to reduce dependence on fossil fuels and stabilise its energy mix. 

Rewriting rules on liability 

One of the most transformative — and closely scrutinised — areas of the draft legislation is nuclear liability, long a sticking point for both domestic and global investors. 

The existing Civil Liability for Nuclear Damage Act has been criticised for placing heavy and ambiguous liability burdens on suppliers, deterring private and foreign companies from entering the market. 

Under the new framework: 

• Liability responsibilities are expected to be clearly delineated. 
• Insurance-based liability caps will be introduced. 
• The government will provide backstopping beyond a defined threshold. 

This hybrid model is designed to strike a balance between investor confidence and public safety, aligning India more closely with international best practices. 

Institutional overhaul 

The SHANTI Bill proposes a suite of structural reforms, including: 

1. A new independent nuclear safety authority: A regulator aligned with global standards will enhance credibility, transparency, and safety oversight. 
2. A dedicated nuclear tribunal: This specialised body will handle liability and other disputes, aiming to streamline resolution and boost investor reassurance. 

These reforms address long-standing industry demands for predictability, professional oversight, and regulatory independence. 

From sidelines to the nuclear value chain 

By opening the door to private participation, India hopes to harness the capabilities of domestic and global companies in several segments: 

• Mining and exploration of atomic minerals 
• Fuel cycle activities, including fabrication 
• Manufacturing of reactors and equipment 
• Potential participation in plant operations under government-supervised structures 

While the state will retain strategic control over sensitive activities, the participation of industry players is expected to accelerate project delivery and innovation. 

The SHANTI Bill marks a watershed moment for India’s nuclear programme, balancing national security considerations with the need for rapid clean-energy expansion. If implemented effectively, it could unlock billions in investments, catalyse advanced technology partnerships, and support India’s long-term climate and energy goals.