SHANTI Act draft rules: NTPC, Tata Power, Adani Power, L&T, BHEL, Power Mech among likely beneficiaries

Draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2026, could materially accelerate India’s small modular reactor, or SMR, opportunity by creating a framework for private participation in civil nuclear power generation, according to Elara Securities.

In its latest note, the brokerage said the proposed rules could improve the addressable market for industrial and commercial applications by allowing a single composite licence and wider use of nuclear power for captive generation, process heat and hydrogen.

Elara said the draft regulations could support the planned SMR ambitions of NTPC Ltd, Tata Power Company Ltd, and Adani Power. It added that the proposed framework could also create a sizeable EPC and equipment opportunity for Larsen & Toubro Ltd (L&T), BHEL, Power Mech, MTAR Technologies and Walchandnagar Industries Ltd, among others.

The brokerage described the draft rules and regulations as a watershed moment in India’s nuclear policy because they formally enable private sector participation in civil nuclear power generation. Elara said the framework’s provision for approved domestic and foreign reactor technologies could facilitate technology partnerships and faster deployment.

It also said stage-wise safety approvals, assured fuel supply, waste management requirements and decommissioning requirements could provide greater regulatory certainty across the project lifecycle.

“The framework’s allowance for approved domestic and foreign reactor technologies could facilitate technology partnerships and faster deployment, while stagewise safety approvals, assured fuel supply, waste management, and decommissioning requirements provide greater regulatory certainty across the project lifecycle. Overall, the rules can help convert India’s SMR pipeline from a long-term ambition into a more structured investment and execution opportunity, benefitting nuclear developers,” Elara said.

Among the key highlights of the draft regulations, Elara pointed to stage-wise safety authorisation, with mandatory approvals required for siting, construction, commissioning, operations and decommissioning of nuclear facilities. The rules also provide for regulatory hold points, under which projects must meet specified safety prerequisites and obtain Board approval before moving to the next stage.

The draft regulations also call for stringent site and design assessment before construction, including site evaluation, plant design, safety analysis, shielding assessment and quality assurance programmes. For commissioning, developers would need to demonstrate emergency preparedness, radiation protection, calibrated monitoring systems, qualified personnel and radioactive waste arrangements.

For operations, the rules require updated safety assessments, quality assurance, radiation surveys, trained and certified personnel, emergency procedures and effective security systems. Continued operations would be subject to periodic safety reviews covering plant ageing, safety margin, operating experience, emergency preparedness and environmental radiological impact.

The framework also sets out conditions for life extension and decommissioning. Nuclear plants seeking to operate beyond their design life would need a Board assessment and confirmation of continued safe operability, while decommissioning would require a dedicated plan covering spent fuel, radioactive waste, trained personnel, quality assurance and waste authorisation.