The Sustainable Harnessing and Advancement of Nuclear Technology for India (SHANTI) Act, 2025, heralds a transformative shift in India's civil nuclear energy landscape.

Enacted by Parliament, this landmark legislation repeals the outdated Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. It replaces a patchwork of fragmented laws with a unified, modern framework.

This new act aligns nuclear policy seamlessly with India's pressing goals of energy security, grid reliability, and decarbonisation. The government has set an ambitious target of 100 GW nuclear capacity by 2047. Currently, India's installed nuclear capacity lingers at 8.78 GW, accounting for a modest 3 per cent of total electricity generation.

Projections indicate a rise to 22.38 GW by 2031-32, blending indigenous 700 MW reactors with international collaborations. Yet, the sector has long been hamstrung by structural hurdles: a state monopoly on operations, a liability regime that scared off investors, and regulations suited to a single-operator model.


At its core, the SHANTI Act introduces measured liberalisation. Indian private firms, joint ventures, and approved entities can now seek licences to construct, own, operate, and decommission nuclear power plants and reactors. This extends to segments of the value chain, such as manufacturing, fuel transport, storage, and select imports or exports.

Crucially, sensitive areas remain ring-fenced for government control. Uranium enrichment, isotopic separation, spent fuel reprocessing, radionuclide handling, high-level waste management, and heavy water production stay exclusive to the central government or its fully owned bodies. This safeguards national security over the nuclear fuel cycle.

The act mandates a robust licensing and safety regime. Licences can be granted, suspended, or revoked under clear conditions. Radiation-related activities demand prior safety clearance, prioritising compliance and public safety amid broader participation.

A pivotal reform tackles the thorny liability issue. The 2010 Act capped operator liability at Rs 15 billion but granted statutory recourse against suppliers, breeding uncertainty that repelled global tech providers. The SHANTI Act introduces a tiered structure, scaling liability by reactor size—up to Rs 30 billion for large units, lower for smaller ones and fuel facilities.

To bolster compensation, a dedicated nuclear liability fund will draw from levies on operations. Supplier recourse is now confined to contractual terms or deliberate misconduct, mirroring international standards and unlocking foreign investment.

Regulatory overhaul forms another cornerstone. The Atomic Energy Regulatory Board gains statutory independence, moving beyond executive oversight. This enhances transparency, credibility, and legal muscle for licensing, inspections, enforcement, and penalties.

New governance layers include the Atomic Energy Redressal Advisory Council for disputes and an appellate authority for regulatory rulings. Claims commissioners and a nuclear damage commission stand ready for incident compensation.

These changes dovetail with wider government pushes. The Nuclear Energy Mission eyes 100 GW by 2047, recognising nuclear baseload reliability amid renewable growth. The 2025-26 Union Budget allocates ₹20,000 crores for small modular reactors (SMRs), targeting five indigenous units by 2033.

Institutions like the Bhabha Atomic Research Centre lead R&D, developing the 200 MWe Bharat Small Modular Reactor, a 55 MWe design, and high-temperature gas-cooled reactors for hydrogen production. The act furnishes the legal backbone for these at scale.

Investment appeal surges as the top impact. By clarifying liability, regulation, and market access, the act renders projects more financeable for domestic and overseas backers. Mandatory insurance and dedicated funds ensure victim redress while capping risks predictably.

Operationally, fortified regulation promises sharper oversight and less ambiguity. Statutory regulator status reassures developers, lenders, and insurers alike.

Private entry eases fiscal pressures too. Nuclear expansion demands vast capital; public funds alone cannot suffice for 100 GW ambitions. Private capital, expertise, and delivery prowess will hasten growth under government watch.

Success, however, rests on execution. Subordinate rules, detailed regulations, and contracts will shape real-world outcomes. Regulatory capacity must expand swiftly to handle diverse designs, operators, and technologies.

Licensing delays could become the next snag without agile expertise and staffing. Investor trust hinges on consistent, foreseeable rollout.

From a systemic view, nuclear complements renewables as India absorbs more solar and wind. Firm, dispatchable, low-carbon power grows vital, and the SHANTI Act equips nuclear for this role.

In essence, the act recalibrates India's nuclear framework profoundly. Consolidating laws, inviting private players, refining liability, and bolstering regulation, it pivots the sector from stagnation to a scalable, investment-ready ecosystem attuned to energy and climate imperatives.

Agencies