US welcomes India’s SHANTI Act, calls it key for stronger energy and nuclear ties

The SHANTI Act consolidates and replaces all existing civil nuclear laws, repealing the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act, 2010. (Representative image)

The U.S., on Monday, welcomed India’s newly passed SHANTI nuclear law, calling it a “significant step towards a stronger energy security partnership and peaceful civil nuclear cooperation” between the two countries.

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, was passed by Parliament last week and received Presidential assent on Saturday. This will lead to an overhaul in India’s civil nuclear framework.

The US Embassy in New Delhi, in its statement, said the law opens doors for closer collaboration. “We welcome India’s new SHANTI Bill, a step towards a stronger energy security partnership and peaceful civil nuclear cooperation,” the embassy noted, adding that the U,S. “stands ready to undertake joint innovation and R&D in the energy sector.”

The SHANTI Act consolidates and replaces all existing civil nuclear laws, repealing the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act, 2010. It also allows private companies and joint ventures to participate in the sector.

Licensed private entities can now build, own, operate and decommission nuclear power plants under government approval.

The legislation grants statutory status to the Atomic Energy Regulatory Board, introduces a formal licensing framework, and sets up a specialised nuclear tribunal to handle disputes. It also removes the clause that held suppliers of nuclear equipment liable for nuclear damage. This provisiond ha long been viewed as a barrier to foreign investment.

The US response comes amid nearly two decades of India-US civil nuclear cooperation, beginning with the landmark nuclear deal that ended India’s isolation and enabled civil nuclear engagement despite India remaining outside the Nuclear Non-Proliferation Treaty.

Although implementation of the deal faced delays due to legal and regulatory hurdles, momentum picked up earlier this year when the US Department of Energy cleared an American firm to design and build nuclear reactors in India.

“With the SHANTI Act now in force, we see fresh scope for expanding cooperation with India in nuclear technology, innovation and energy security,” the embassy added.