India Enacts SHANTI Act, Opening Nuclear Sector to Private Players and 100 GW Goal
Updated (2 articles)
SHANTI Act Repeals Legacy Laws and Establishes New Framework Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act on 20 December 2025, repealing the Atomic Energy Act 1962 and the Civil Liability for Nuclear Damage Act 2010. The legislation creates a statutory Atomic Energy Regulatory Board while retaining government authority over major licences. It also creates a legal pathway for private firms and potential foreign funding to enter India’s nuclear sector [1].
Private Capital Allowed While Sensitive Fuel Cycles Remain State‑Controlled SHANTI authorises the Centre to grant licences to government entities, joint ventures and “any other company” that meets conditions, signalling domestic private capital as primary operators. Sensitive stages of the fuel cycle, including uranium enrichment and re‑processing, stay under state control to preserve non‑proliferation safeguards. The bill permits foreign investment in ancillary services, though full ownership of reactors remains restricted [1][2].
100 GW Nuclear Capacity Goal by 2047 Drives SMR and Private Build‑Out The act targets expanding nuclear generation from roughly 8.8 GW today to 100 GW by 2047, with state utilities expected to add about 54 GW and private players supplying the balance. At least five indigenous small modular reactors (SMRs) must be operational by 2033 to help meet the schedule. SMRs are described as modular units using enriched uranium‑235, offering quicker deployment but higher per‑megawatt costs and no inherent waste solution [1][2].
Tiered Liability Caps and Centre Backstop Aim to Balance Risk and Investment Liability is tiered by plant capacity, capping operator responsibility at ₹100 crore for plants under 150 MW and up to ₹3,000 crore for those above 3,600 MW. The Centre assumes liability beyond the operator’s cap and can fully cover non‑government installations deemed in the public interest. Operators must secure insurance or financial security, while central installations are exempt, raising questions about transparency and victim compensation [1][2].
Sources
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1.
The Hindu: SHANTI Act opens India’s nuclear sector to private players, revises liability, and sets a long-term 2047 target – details the repeal of legacy laws, private‑sector entry, liability tiers, and the 100 GW by 2047 ambition.
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2.
The Hindu: SHANTI Bill reshapes India's nuclear governance with private participation and state controls – focuses on licensing scope, capital mobilisation for SMRs, state safeguards on fuel cycles, and regulator independence concerns.
Timeline
1962 – Parliament passes the Atomic Energy Act, creating a state‑led monopoly over nuclear plant construction and operation, a framework later repealed by the SHANTI legislation [1].
2010 – India enacts the Civil Liability for Nuclear Damage Act, establishing liability caps that the 2025 SHANTI law later replaces with a tiered system based on reactor size [1].
Dec 2025 (mid‑December) – The SHANTI Bill receives parliamentary approval, expanding licensing authority to “any other company” and allowing private and joint‑venture participation while keeping sensitive fuel cycles under state control; the bill states “SHANTI would allow the Centre to license nuclear energy activities to government entities, joint ventures and ‘any other company’” [2].
Dec 20, 2025 – Parliament enacts the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, repealing the 1962 and 2010 laws, formalising the Atomic Energy Regulatory Board, and setting a long‑term target of 100 GW nuclear capacity by 2047, up from about 8.8 GW in 2025 [1].
Dec 20, 2025 – The SHANTI Act introduces a graded liability framework, declaring “above 3600 MW faces a ₹3,000 crore cap; 3600 MW to 1500 MW ₹1,500 crore; 1500 MW to 750 MW ₹750 crore; 750 MW to 150 MW ₹300 crore; under 150 MW ₹100 crore,” to balance reparations with investor confidence [1].
Dec 20, 2025 – The act earmarks at least five indigenous small modular reactors (SMRs) to be built by 2033, noting that SMRs “offer less power per unit and higher unit costs” but can diversify the reactor fleet [1].
Sep 2026 (planned) – India plans to commission its first prototype fast breeder reactor, advancing the three‑stage nuclear programme toward Stage 2 after decades of reliance on pressurised heavy‑water reactors [1].
2033 (target) – The government expects to have deployed a minimum of five indigenous SMRs, supporting the broader 100 GW goal and providing modular capacity additions [2].
2047 (goal) – India aims to achieve 100 GW of nuclear generation capacity, with roughly half supplied by state utilities and the remainder by private developers, reshaping the country’s energy mix and reducing carbon intensity [1][2].