The United States has welcomed India's Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, describing it as a vital step towards enhanced energy security partnership and peaceful civil nuclear cooperation.

The US Embassy in New Delhi emphasised readiness for joint innovation and research and development in the energy sector, signalling deeper bilateral ties nearly two decades after the landmark India-US civil nuclear deal.

The SHANTI Bill, introduced in the Lok Sabha on 15 December 2025, passed both houses of Parliament by 18 December and received Presidential assent shortly thereafter. It repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage (CLND) Act of 2010, consolidating India's nuclear legal framework into a single modern statute.

This overhaul aims to modernise regulation, enforcement, civil liability, and dispute resolution while supporting India's clean energy transition.

A core provision enables limited private participation in the nuclear sector for the first time since Independence, ending the monopoly of the Nuclear Power Corporation of India Limited (NPCIL) in operating plants.

Eligible entities now include government companies, private Indian firms, joint ventures between public and private players, and others expressly permitted by the central government. These may build, own, operate, or decommission nuclear power plants or reactors, subject to licensing and safety authorisation from the Atomic Energy Regulatory Board (AERB) for radiation-related activities.

The Bill retains state control over strategic domains such as nuclear fuel production, heavy water manufacturing, and radioactive waste management to safeguard national security and non-proliferation commitments.

It grants statutory recognition to the AERB, making it accountable to Parliament and empowering it to regulate nuclear and radiation safety through codes, standards, licensing, and enforcement. The AERB's structure includes a chairperson and members of eminence in nuclear energy, appointed via a search-cum-selection committee recommended by the Atomic Energy Commission.

Nuclear liability provisions mark a significant shift, introducing a tiered cap from ₹100 crore to ₹3,000 crore based on reactor thermal capacity rather than a flat ₹1,500 crore limit. Operator liability follows a no-fault principle, with insurance requirements and central government coverage for excess claims, but excludes cases like natural disasters.

Crucially, the Bill removes supplier liability and the operator's right of recourse for defective equipment, aligning India with international conventions to attract investment.

Territorial scope for claims expands to cover nuclear damage in foreign states from incidents in India, under specified conditions. The legislation establishes an Atomic Energy Redressal Advisory Council, chaired by the Atomic Energy Commission head, to hear appeals against AERB or government decisions, with further recourse to the Appellate Tribunal for Electricity. A dedicated atomic disputes tribunal enhances regulatory certainty for investors.
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India's nuclear landscape currently features 8.18 GW capacity from over 20 reactors, all NPCIL-operated, with plans for more amid chronic project delays like Kudankulam Units 3-6. The Bill supports ambitious targets of 22 GW by 2032 and 100 GW by 2047, requiring ₹15 lakh crore investment beyond public sector means.

It facilitates advanced technologies such as Small Modular Reactors (SMRs), Bharat Small Reactors, molten salt reactors, and high-temperature gas-cooled reactors, bolstered by the Union Budget 2025-26's Nuclear Energy Mission aiming for five indigenous SMRs by 2033.

The US endorsement underscores potential for collaboration in SMRs and R&D, building on historical ties that ended India's nuclear isolation despite its non-NPT status. Reforms address financing gaps, uranium supply chains, and execution challenges, promoting private efficiency in engineering, procurement, and construction.

Yet, critics highlight risks: capped liability may erode the polluter pays principle, weaken accountability post-Bhopal, and override RTI transparency.

Strengthening measures include AERB autonomy, inflation-indexed liability reviews, mandatory safety disclosures, centre-state emergency protocols, and robust waste management norms. Private entry promises faster scaling for net-zero by 2070, grid stability, and low-carbon baseload power complementing renewables.

The SHANTI Bill positions nuclear energy as pivotal to India's energy security and geopolitical partnerships.
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Agencies