The Union Cabinet on Friday approved the Atomic Energy Bill, 2025, also known as the SHANTI Bill (Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India), making a significant policy shift that will allow private sector participation in India’s nuclear power industry for the first time.
The Cabinet decision taken on December 12 at a meeting chaired by Prime Minister Narendra Modi will now see the Bill introduced in the ongoing Winter Session of Parliament. The move aims to diversify clean energy sources and accelerate capacity expansion under India’s long-term nuclear roadmap.
Opening up a tightly regulated sector
Until now, the nuclear power sector in India has been shut to private companies, with generation and large parts of the fuel cycle dominated by Central Public Sector Enterprises (CPSEs) such as Nuclear Power Corporation of India Ltd (NPCIL) and other public sector units. The SHANTI Bill removes this exclusive framework by providing a comprehensive legal structure for private investment in areas previously restricted to the government.
Under the proposed framework, private firms will be able to participate not only in nuclear power generation but also in related upstream activities such as atomic mineral exploration and mining, and fuel fabrication—domains that until now were under the Department of Atomic Energy (DAE) alone.
Regulatory changes
The SHANTI Bill is also expected to propose the creation of a specialised tribunal to adjudicate disputes related to nuclear energy, as well as a nuclear safety authority that would work in coordination with the International Atomic Energy Agency (IAEA) to oversee compliance and regulatory governance.
The SHANTI bill, 2025 aligns with the National Nuclear Energy Mission announced in the 2025 Union Budget, which set out an ambitious plan to scale India’s nuclear power capacity to 100 GW by 2047 — a tenfold increase from the current installed capacity of about 8 GW. The mission seeks to accelerate approvals, expand reactor deployment, secure long-term fuel supply, and enable private participation to bridge the investment and technology gaps needed to achieve the multi-decadal growth target.
Liability clause to be included?
According to a government source, the SHANTI Bill is likely to not only open the sector to private players but also address liability concerns of nuclear equipment suppliers. Currently, the liability clause falls under a separate legislation called the Civil Liability for Nuclear Damage Act, 2010 (CLNDA).
Anujesh Dwivedi, Partner, Deloitte India, said it is critical to align civil nuclear liability for operators and suppliers with international standards to attract global technology providers as well as private investors. "Currently, the tariff for nuclear power is governed by the Department of Atomic Energy (DAE), in consultation with the Central Electricity Authority (CEA). However, private sector participation will necessitate governance by an independent regulator (such as CERC), enabling the possibility of competitive determination of tariffs," Dwivedi said.
Also, involving the private sector in research and development of nuclear technologies for civil use, such as the development of Small Modular Reactors (SMRs), by allowing the creation of intellectual property rights would be a progressive step and in line with the approach adopted by several developed countries, he added.
The Cabinet’s approval of the SHANTI Bill marks a significant departure from decades of exclusive government control over the nuclear energy sector and could reshape India’s strategic energy landscape in the coming years.
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