What does SHANTI Bill propose and why is it important?
SHANTI Bill 2025 reforms the nuclear energy sector, repealing older acts and enabling private participation. It aims to boost nuclear power's share, crucial for climate goals and energy security. The Bill establishes a pragmatic civil liability regime and a robust regulatory framework, attracting significant investment and fostering innovation in nuclear science for India's sustainable development.
New Delhi: The government introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI Bill) in the Lok Sabha on Monday. The Bill envisages to repeal the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. If enacted, it would open India’s strictly regulated nuclear power sector to private players.
Minister of State of Science & Technology Jitendra Singh said: "The Bill seeks to provide for a pragmatic civil liability regime for nuclear damage and to confer statutory status to the Atomic Energy Regulatory Board."
The Bill comes as India is looking outward for nuclear collaborations. There is an immediate need for reliable base-load alternatives to coal to tackle the limitations of renewables. India also requires substantial capital to expand nuclear capacity. The Bill aims to increase the share of nuclear energy in the national energy mix. It seeks to encourage innovation in nuclear science and technology. The Bill also seeks to establish a robust regulatory framework for the safe and secure use of nuclear energy, along with matters related or incidental to it.
What's there in the Bill?
It was last week that the Union Cabinet gave its approval to the Atomic Energy Bill, 2025 — also known as SHANTI — sending a strong signal on India’s future energy pathways.
The SHANTI Bill eases the rules on liability for nuclear damage and removes the controversial supplier liability clause under the CLND Act. This clause has dissuaded US and other foreign companies from setting up nuclear power plants in India. The Bill allows private sector ‘operators’ to operate nuclear power plants, import nuclear fuel and process it as per Clause 3 of the Bill.
The SHANTI Bill states that the Centre will issue licences to government firms, private companies, joint ventures, or any other permitted entity to operate across a range of activities. These include the right to build, own, operate, or decommission nuclear power plants or reactors; fabricate nuclear fuel — including conversion, refining, and enrichment of uranium-235 up to a prescribed limit; transport or store nuclear and spent fuel; and import, export, acquire, or possess nuclear fuel, as well as specified equipment, technology, and software needed for its development and production.
In a post, official Parliamentary channel said: "The Bill to provide for the promotion and development of nuclear energy and ionising radiation for nuclear power generation, application in healthcare, food, water, agriculture, industry, research, environment, innovation in nuclear science and technology, for the welfare of the people of India, and for robust regulatory framework for its safe and secure utilisation and for matters connected therewith or incidental thereto."
The Bill also spells out operators’ rights to recourse and limits the jurisdiction of civil courts in matters related to nuclear energy. Operators will have to maintain insurance or liability funds of roughly $11 million to $330 million, depending on the size of the reactor. Claims exceeding these caps will be taken care of by a separate nuclear liability fund, with the government stepping in if damages go beyond the stipulated caps. The government has also proposed establishing a specialised tribunal to address disputes outside the civil court system and deal with liability-related matters.
Why does it hold importance?
The Bill is important because it aligns to India’s climate commitments. India has set a goal of achieving net-zero emissions by 2070 and raising nuclear power capacity to 100 gigawatts by 2047, up from the current 8.2 GW.
To achieve that target, the country needs to focus and improve harnessing indigenous nuclear resources. That is possible only when both public and private sectors participate.
Indian conglomerates such as Tata Power, Adani Power, and Reliance Industries have evinced interest in investing in nuclear energy, while international suppliers like Westinghouse, GE-Hitachi, France’s EDF, and Russia’s Rosatom are ready to tie up with Indian companies.
The Bill is a key step in changing India’s nuclear energy landscape. With private participation and global collaborations, it will help India position itself as a nuclear power, which will go a long way in giving the country an edge in clean energy and climate commitments.