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India Enacts SHANTI Act Opening Nuclear Sector to Private and Foreign Investors

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SHANTI Bill Passage and Presidential Assent The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 was introduced in the Lok Sabha on 15 December 2025, approved on 17 December, transmitted to the Rajya Sabha on 18 December, and received presidential assent from President Droupadi Murmu on 20 December, thereby becoming law [1].

Replacement of Legacy Nuclear Legislation The new Act repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, marking the most comprehensive overhaul of India’s civil nuclear framework since independence [1].

Private and Foreign Participation Now Permitted By opening the sector’s “once much‑guarded doors,” the legislation allows private and foreign firms to invest in nuclear power generation, aiming to improve project bankability, boost supplier confidence, and attract technology partners and equipment manufacturers [1].

Ambitious Capacity Target and Regulatory Reforms The government’s Nuclear Energy Mission targets 100 GW of nuclear capacity by 2047, encompassing large reactors and small modular reactors (SMRs), aligning with Prime Minister Narendra Modi’s 2070 net‑zero ambition and the U.S.–India energy partnership; the Act also strengthens regulator autonomy and introduces a graded liability regime to modernise engagement rules [1].

Link to 2008 US‑India Civil Nuclear Agreement The SHANTI Act builds on the 2008 civil nuclear deal that gave India access to civilian nuclear technology despite not being an NPT signatory and has already expanded defence trade to roughly $20 billion, underscoring the strategic depth of the partnership [1].

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Timeline

1962 – India enacts the Atomic Energy Act, creating a state‑run monopoly over civil nuclear activities and barring private firms from building or operating reactors. [1]

2010 – Parliament passes the Civil Liability for Nuclear Damage Act, establishing a liability regime that holds nuclear operators—and, in limited cases, equipment suppliers—accountable for nuclear accidents. [1]

2008 – The United States and India sign a civil nuclear agreement, granting India access to civilian nuclear technology despite its non‑signatory status to the NPT and laying the foundation for later strategic energy cooperation. [1]

2021 – An amendment to the Mines and Minerals (Development and Regulation) Act permits private mining of beach‑sand monazite, raising concerns that private entities could later access thorium resources. [3]

Dec 15, 2025 – The Lok Sabha introduces the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, repealing the 1962 and 2010 statutes and proposing a unified licensing framework that lets any domestic or foreign company build, own, operate or de‑commission nuclear plants; Prof. Ram Mohan says, “the reform is long overdue and could spur private participation.” [13]

Dec 17, 2025 – The Lok Sabha passes the SHANTI Bill, capping operator liability at ₹3,000 crore for large reactors, creating a nuclear insurance pool funded through tariffs, while opposition MPs warn the timing favours private interests such as the Adani Group. [11]

Dec 18, 2025 – The Rajya Sabha approves the SHANTI Bill in a voice vote; Minister of State Jitendra Singh asserts, “nuclear power is a reliable energy source and safety will come first,” and nominated MP Harsh Vardhan Shringla describes private investment as “a partnership with accountability.” [10]

Dec 19, 2025 – President Donald Trump signs the U.S. National Defence Authorization Act 2026, directing a joint U.S.–India consultative mechanism to align India’s nuclear liability rules with international norms and referencing the 2008 Indo‑U.S. nuclear deal. [9]

Dec 20, 2025 – President Droupadi Murmu grants assent to the SHANTI Bill, formally enacting the SHANTI Act, opening India’s civil nuclear sector to private and foreign participation while retaining central control over uranium/thorium mining, enrichment and spent‑fuel management. [6]

Dec 21, 2025 – Congress leader Jairam Ramesh tweets, “the government bulldozed the SHANTI Bill to help Trump and Adani,” accusing the legislation of diluting the Civil Liability for Nuclear Damage Act and echoing concerns raised in the NDAA. [8]

Dec 27, 2025 – The SHANTI Act establishes a graded liability regime: ₹3,000 crore for plants > 3,600 MW, ₹1,500 crore for 1,500‑3,600 MW, ₹750 crore for 750‑1,500 MW, ₹300 crore for 150‑750 MW, and ₹100 crore for < 150 MW, with the Centre assuming any excess liability; critics warn the cap could strain public finances in a Fukushima‑scale event. [4]

Dec 29, 2025 – The SHANTI Act comes into force, granting the Atomic Energy Regulatory Board statutory status, requiring safety authorisation for all private nuclear activities, and allowing the Centre to declare reactor‑design information exempt from RTI; Dr. Sharma cautions that “private mining in beach sands could persist” under the new framework. [3]

Jan 5, 2026 – Parliament finalises the SHANTI framework, confirming the AERB’s statutory status and its accountability to Parliament, while the liability caps and supplier‑exemption provisions remain in force. [2]

Feb 2‑3, 2026 – The SHANTI Act is officially enacted after presidential assent, replacing legacy statutes, strengthening regulator independence, and aligning India’s liability regime with the Vienna Convention; the government declares the reform “the most comprehensive overhaul of India’s civil nuclear framework since independence.” [1]

Sep 2026 (expected) – India plans to commission its prototype fast‑breeder reactor, the first step toward Stage 2 of its three‑stage nuclear programme. [5]

2033 (target) – The government aims to deploy at least five indigenous Small Modular Reactors (SMRs) to diversify the reactor fleet and support the 100 GW nuclear capacity goal. [12]

2047 (target) – India’s Nuclear Energy Mission seeks to achieve 100 GW of nuclear capacity—combining large reactors and SMRs—to meet its net‑zero ambition by 2070 and support an HDI of 0.9. [1][5][7]

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