OPINION | A nuclear legislation that creates an enabling framework for private investment

SHANTI aims to bring in private operators to complement state-run nuclear plants

India’s civil nuclear programme is entering a phase where ambition must be matched by institutional readiness. As the country advances towards its decarbonisation commitments and long-term clean-energy goals articulated at COP26, nuclear power assumes a critical role in delivering reliable, low-carbon baseload capacity at scale.

For an economy of India’s size and growth trajectory, this is not optional; it is essential.

The ability to expand nuclear capacity, however, depends not only on technology and safety but equally on the robustness of the legal, regulatory, and institutional framework that governs the sector.

In this context, the SHANTI Bill, 2025, represents a timely and necessary recalibration of India’s nuclear legislation to reflect today’s energy needs, global practices and the scale at which nuclear power must now be deployed.

The SHANTI Bill is structured around four integrated pillars.

* First, it consolidates and modernises nuclear legislation, replacing fragmented and legacy statutes with a single, comprehensive framework governing the entire lifecycle of nuclear facilities.

* Second, it strengthens regulatory clarity by reinforcing statutory authority and institutional separation between safety oversight and programme execution.

* Third, it rationalises the nuclear liability regime by introducing defined, insurable responsibility aligned with international norms.

Finally, it enables structured private sector participation and international collaboration under clear sovereign, regulatory, and security safeguards.

Together, these elements create the conditions required for long-cycle infrastructure planning, financing, and execution.

India’s nuclear program has historically been governed by the Atomic Energy Act, 1962—legislation framed at a time when nuclear technology was in its early stages globally, and the program scale was limited. That framework established strong sovereign control and a rigorous safety culture, both of which remain fundamental to the sector.

However, the operating environment has changed decisively. Climate commitments and decarbonisation imperatives now coincide with rapidly rising energy demand driven by economic growth, urbanization and the expansion of India’s digital infrastructure.

Large-scale data centres, advanced manufacturing and technology-led services require stable, round-the-clock power at scale—an attribute that intermittent sources alone cannot provide. Meeting these requirements calls for sustained, programmatic expansion of reliable, low-carbon baseload capacity over multiple decades. As nuclear projects have grown in scale, capital intensity, and lifecycle duration, the constraints of existing legal arrangements in supporting sustained, programmatic expansion have become increasingly apparent, necessitating a recalibration of the framework to align with India’s long-term energy vision.

The Civil Liability for Nuclear Damage Act, 2010, sought to strengthen accountability in a specific global context. Over time, however, its supplier recourse provisions introduced uncertainty around insurability, contracting, and financing; constraints that are incompatible with large-scale, long-term nuclear deployment. Revisiting this framework was therefore necessary to align legal intent with execution realities.

A central contribution of the SHANTI Bill is the creation of a single, coherent legal framework governing nuclear facilities from siting and construction through operation, life-extension, and decommissioning.

For engineering organisations and infrastructure developers, such consolidation provides clarity, reduces interpretational risk and supports disciplined execution over the long term.

Equally important is the statutory strengthening of nuclear regulation. Clear separation between regulation and execution reinforces transparency, accountability, and public confidence. Strong, independent regulation is not a constraint on growth; it is the foundation on which safe, large-scale nuclear development rests.

The revised liability framework places clearly defined and capped responsibility on operators, improving the insurability and bankability of nuclear projects. This does not dilute safety obligations or public accountability. Instead, it ensures that risk is clearly allocated, quantifiable, and manageable, an essential requirement for long-term financing, insurance coverage, and structured contracting in capital-intensive infrastructure sectors.

For projects designed to operate over multiple decades, such clarity is indispensable

The SHANTI Bill enables private sector participation across the civil nuclear value chain—bringing engineering capability, manufacturing strength, and execution capacity to complement public-sector stewardship. This expands national capability without diluting sovereign control over technology or safety oversight.

Aligning India's legal and liability frameworks with internationally recognised principles also facilitates structured engagement with global technology partners. As advanced reactor systems, modular construction techniques, and Small Modular Reactor technologies mature, such engagement will be essential for technology access, capability building, and accelerated deployment.

The SHANTI Bill addresses the legislative prerequisites for India's nuclear program to expand at the pace its energy transition demands. It resolves liability ambiguities, enables broader participation, and strengthens regulatory independence, while retaining sovereign control over sensitive technologies.

The enabling conditions for long-term capacity building are now in place. Achieving the 100 GW target aligned with Viksit Bharat will require manufacturing depth, skilled talent, and disciplined execution across decades of concurrent construction. What is required now is sustained execution, translating legislative enablement into operational capacity with the discipline and speed that the nation's clean energy transition demands.