The Atomic Energy Bill, branded the SHANTI Bill, 2025, aims to rewrite India’s Nuclear Energy Architecture. It paved the way for regulated private-sector participation in nuclear power generation. Read here to learn more.
The Union Cabinet’s approval of the Atomic Energy Bill, 2025, branded as the Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, marks the most consequential reform of India’s nuclear sector since the Atomic Energy Act, 1962.
Coming at a time when India is racing to meet rising energy demand, climate commitments, and strategic autonomy goals, the SHANTI Bill signals a decisive shift from a tightly state-controlled nuclear regime to a modern, investment-friendly, safety-centric framework aligned with global best practices.
Significance of Nuclear Energy for India
India’s electricity demand is projected to double by 2040, driven by industrialisation, urbanisation, data centres, EV adoption, and green hydrogen production.
While renewables are expanding rapidly, their intermittency makes baseload clean power indispensable.
Nuclear energy offers:
- 24/7 low-carbon electricity
- Very high energy density with minimal land footprint
- Long-term price stability
- Strategic energy security by reducing fossil fuel dependence
Recognising this, India has set an ambitious target of 100 GW nuclear capacity by 2047, compared to about 7.5 GW today.
Existing Legal Bottlenecks
India’s nuclear sector has long been constrained by two major laws:
- Atomic Energy Act, 1962
- Centralises all nuclear activities under the government
- Effectively excludes private sector participation
- Reflects Cold War-era security thinking rather than modern energy economics
- Civil Liability for Nuclear Damage Act, 2010 (CLND Act)
- Introduced after the Indo–US nuclear deal
- Imposes supplier liability through Section 17(b)
- Created uncertainty for foreign vendors and insurers
- Widely seen as misaligned with international nuclear liability conventions
Together, these laws discouraged investment, slowed capacity addition, and kept India’s nuclear programme small, slow, and state-dependent.
What is the SHANTI Bill 2025?
The SHANTI Bill is a comprehensive nuclear sector reform legislation designed to replace fragmented, outdated laws with a unified, forward-looking governance framework.
Ministry & Institutional Architecture
- Introduced by the Department of Atomic Energy (DAE) under the Prime Minister
- Provides for the creation of an independent nuclear safety regulator, separating policy promotion from safety oversight
Core Objectives of the SHANTI Bill
- Enable large-scale nuclear capacity expansion
- Attract private and foreign investment
- Modernise safety, regulation, and liability
- Promote innovation, including Small Modular Reactors (SMRs)
- Align India’s nuclear sector with global norms
- Support India’s net-zero by 2070 commitment
Key Features of the SHANTI Bill
- Opening the Nuclear Value Chain to Private Players
For the first time, private companies are permitted entry into:
- Uranium exploration and mining (with safeguards)
- Fuel fabrication
- Reactor components and heavy equipment manufacturing
- Engineering, construction, and potentially plant operations under licensing
This breaks the 60-year state monopoly, enabling competition, innovation, and efficiency.
- Unified Legal and Licensing Framework
The Bill consolidates licensing, compliance, inspection, and enforcement into a single streamlined legal structure, reducing red tape and regulatory ambiguity.
This replaces the current patchwork of rules that often delay projects for years.
- Reformed Nuclear Liability Architecture
One of the most transformative aspects of the Bill is the overhaul of nuclear liability.
Key elements include:
- Clear operator–supplier responsibility split
- Liability caps backed by mandatory insurance
- Government backstop for catastrophic events
- Alignment with international conventions such as the Convention on Supplementary Compensation (CSC)
This resolves long-standing concerns of global suppliers and insurers while protecting public interest.
- Independent Nuclear Safety Authority
The Bill establishes a statutorily independent nuclear safety regulator, replacing the current arrangement where safety oversight lies within the atomic energy ecosystem.
This:
- Enhances credibility and transparency
- Aligns India with IAEA norms
- Improves public trust in nuclear expansion
- Dedicated Nuclear Tribunal
A specialised Nuclear Tribunal will adjudicate:
- Liability disputes
- Compensation claims
- Contractual disagreements
This fast-tracks dispute resolution mechanism reduces legal uncertainty and investor risk.
- Boost to Small Modular Reactors (SMRs)
The SHANTI Bill explicitly supports:
- R&D
- Licensing
- Deployment of SMRs
SMRs offer:
- Lower upfront capital costs
- Modular, scalable deployment
- Applications in remote regions, industrial clusters, and desalination
- Compatibility with renewable-heavy grids
They are expected to be a cornerstone of India’s clean industrialisation strategy.
Strategic Significance of the SHANTI Bill
- Energy Security
- Reduces dependence on coal and imported gas
- Diversifies India’s energy basket
- Strengthens resilience against global fuel price shocks
- Climate Action
- Nuclear is essential for deep decarbonisation
- Supports India’s net-zero pathway without compromising growth
- Complements solar, wind, and green hydrogen
- Economic & Industrial Impact
- Attracts high-value investment
- Creates skilled jobs in engineering, manufacturing, and R&D
- Strengthens India’s heavy engineering and precision manufacturing ecosystem
- Strategic Autonomy
- Enhances indigenous nuclear capability
- Positions India as a global nuclear technology hub
- Strengthens India’s negotiating leverage in climate and energy diplomacy
Concerns and Challenges
Despite its promise, the SHANTI Bill raises important questions:
Safety & Public Trust
- Nuclear expansion must be accompanied by transparent safety communication
- Community consent and environmental safeguards remain critical
Regulatory Capacity
- Independent regulator must be adequately staffed and empowered
- Avoid regulatory capture by industry or government
Waste Management
- Long-term radioactive waste disposal remains unresolved
- Requires parallel policy strengthening
Federal & Local Coordination
- Nuclear projects affect land, water, and local livelihoods
- Centre–state coordination will be crucial
Conclusion
The SHANTI Bill, 2025, represents a historic inflection point in India’s energy journey. By modernising governance, reforming liability, opening doors to private participation, and strengthening safety oversight, the Bill lays the foundation for a scalable, secure, and climate-compatible nuclear future.
If implemented with institutional integrity, public transparency, and scientific rigor, SHANTI could transform nuclear energy from a niche contributor into a central pillar of India’s 21st-century development strategy, powering growth, safeguarding the climate, and strengthening national security simultaneously.
Related articles:
IAS/IPS/IFS Smart Preparation Strategy: FREE Mentorship – Register Now!
Aim IAS/IPS/IFS?
NCERT Summary Textbooks
Leave a Reply