India’s SHANTI Act Clears Legislative Hurdles, Opens Nuclear Sector to Private and Foreign Investors
Updated (3 articles)
Rapid Legislative Passage From Introduction to Assent The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill was introduced in the Lok Sabha on 15 December 2025, approved two days later, moved to the Rajya Sabha on 18 December, and received President Droupadi Murmu’s assent on 20 December, becoming law as the SHANTI Act, 2025 [1].
Repeal of Legacy Nuclear Laws Restructures Legal Framework The new Act fully 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 legislation since independence [1].
Private and Foreign Firms Granted Access to Nuclear Projects By opening the “once much‑guarded doors,” the SHANTI Act authorises private and foreign entities to invest in nuclear power generation, aiming to improve project bankability, boost supplier confidence, and attract technology partners and equipment manufacturers [1].
100 GW Capacity Goal Backed by Regulatory Reforms and International Partnerships The legislation supports the government’s dual‑fold Nuclear Energy Mission to reach 100 GW of nuclear capacity by 2047, introduces a graded liability regime and greater regulator autonomy, and builds on the 2008 U.S.–India civil nuclear deal that has already expanded defence trade to $20 billion [1].
Timeline
1962 – India enacts the Atomic Energy Act, establishing a state‑controlled framework for civil nuclear activities that later becomes a barrier to private investment [3].
2008 – The United States and India sign a civil nuclear agreement, granting India access to civilian nuclear technology despite its non‑NPT status and laying groundwork for future sector liberalisation [1].
2010 – India passes the Civil Liability for Nuclear Damage Act, introducing supplier liability provisions that provoke protests from Western suppliers and constrain nuclear contracts [3].
2015 – During Modi‑Obama talks, attempts to secure new nuclear contracts stall; consequently, Russia remains the sole operator of the Kudankulam plant under pre‑CNLD arrangements [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 Acts and creating a licensing regime for private and foreign firms to build, own, operate and de‑commission plants [3].
Dec 17, 2025 – Parliament approves the SHANTI Bill, signalling bipartisan support for opening the nuclear sector to market competition [1].
Dec 18, 2025 – The bill moves to the Rajya Sabha for further deliberation, completing its legislative passage through both houses [1].
Dec 20, 2025 – President Droupadi Murmu grants assent, and the SHANTI Act, 2025 becomes law, formally repealing the legacy statutes and establishing an autonomous atomic energy regulator answerable to Parliament [1][2].
Dec 20, 2025 – The Act introduces a graded liability framework, caps operator penalties at ₹1 crore for severe breaches, and ends the Nuclear Power Corporation of India’s monopoly over plant operation [3].
Dec 20, 2025 – The government announces a dual‑track Nuclear Energy Mission targeting 100 GW of nuclear capacity by 2047, including large reactors and small modular reactors (SMRs), to support Prime Minister Modi’s 2070 net‑zero ambition [1].
Dec 20, 2025 – The legislation leverages the 2008 U.S.–India civil nuclear deal, deepening the strategic partnership that already underpins $20 billion of defence trade [1].
Dec 20, 2025 – Prof. Ram Mohan welcomes the reform as “long overdue,” saying it “could spur private participation and innovation” while urging rigorous safety oversight by the Atomic Energy Regulatory Board [3].
Dec 20, 2025 – Opposition MPs Jairam Ramesh and Manish Tewari criticize the concentration of power in the central government and demand stronger parliamentary scrutiny of the new framework [3].
2025‑2047 (planned) – India embarks on a ₹20,000 crore mission to develop SMRs and attract private‑sector investment, aiming to expand nuclear generation from the current ~8.8 GW to 100 GW by 2047 [3][1].