The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act marks a pivotal shift in India’s approach to nuclear energy by balancing investment needs, energy security, climate commitments, and safety imperatives. A robust institutional architecture must be established for the Act to come into effect efficaciously.
Core elements of the operational nuclear ecosystem that must be addressed include an evolution trajectory laid out in the national nuclear policy; incubating applied research; dimensions of safety and technical regulation, licensing, tariff mechanism, financial security and liability, and insurance architecture; institutional capacity, workforce upskilling, and broader enablers such as mining, intellectual property, confidentiality and claims processes.
The Act provides an overarching safety and technical framework, but detailed subordinate legislation is needed to define “prescribed equipment” and “prescribed substances”, identify facilities and activities requiring safety authorisation, and set stage-wise standards across the lifecycle of nuclear operations—from design and siting to decommissioning. The rules must also prescribe qualifications and training for personnel, identify radioactive substances requiring licensing and a national registry, establish protocols for storage, transport and emergency disposal. This will align India with global nuclear governance norms.
A predictable and transparent licensing regime must define the rules for entry into, participation in and exit from the Indian market. It should specify conditions for grant of licences, application requirements, fees, performance standards, and triggers for suspension or cancellation, together with clear mechanisms for handling facilities, materials and equipment in such cases.
In a price-sensitive market like India, implementing such a programme will require significant financial structuring. The central questions are how such capital expenditure can be made viable and creditworthy; how the costs of safety measures for storage, handling and O&M of the nuclear island—including prescribed equipment and material—will be absorbed; and how nuclear energy can be assured a must-run and must-dispatch status in a merit-based grid.
To unlock financing, especially from international investors and insurers, the layered financial protection framework envisaged by the Act must be clearly articulated. This includes prescribing how financial security for non-nuclear damage is to be maintained, establishing the Nuclear Liability Fund, requiring operators to obtain adequate insurance or other financial security for nuclear liability, and developing standard-form contracts to govern operators’ rights of recourse against suppliers.
The effectiveness of the Act hinges on the efficacy of its institutions and the robustness of its processes. The immediate priority is therefore the constitution of a credible regulatory ecosystem, including the appointment of the Chairperson and Members of the regulatory board with the requisite qualifications and independence safeguards; notification of qualifications, tenure and service conditions across adjudicatory bodies; definition of the board’s financial and administrative powers; and development of institutional capabilities in contract management for complex, long-term PPP or hybrid structures. This must be anchored in a clear national policy direction that aligns nuclear expansion with India’s broader energy and climate strategy.
India must build and constantly upskill a skilled workforce and institutional capacity across the value chain. Availability of specialised human capital to design, construct, operate, regulate and oversee facilities will be critical. Rules must therefore prescribe competency standards, accreditation frameworks, continuous training requirements and a strong safety culture, including incident reporting and periodic audits.
Several cross-cutting enablers must be put in place. These include rules governing mining and resource control, directions on patent applications involving sensitive nuclear technologies, confidentiality and security measures to safeguard restricted information, and detailed claims and compensation procedures for nuclear damage.
Each of these elements addresses specific risk and value dimensions of nuclear energy and must be operationalised in tandem.
The Road Ahead
The implementation challenge is primarily one of sequencing and coordination across these elements.
A phased and consultative approach will be critical. Early prioritisation of safety regulations, licensing frameworks and institutional appointments can create momentum, followed by financial and policy measures to deepen participation.
Equally important will be stakeholder engagement—particularly with civil society in plant locations, industry, insurers and international partners—to ensure that the framework is both robust and pragmatic.
The Act provides a comprehensive legislative foundation for India’s nuclear energy ambitions. However, its success will depend on the timely and coherent execution of an extensive rule-making and policy agenda. The next phase is therefore about building a functioning, credible and investible nuclear ecosystem. The real work has just begun.
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