India’s Department of Atomic Energy has released draft rules under the SHANTI Act, 2025, introducing a single-window composite licence, mandatory insurance and financial security for nuclear operators, and strict conditions for foreign reactor integration.

These measures mark a decisive overhaul of India’s nuclear regulatory framework, aiming to balance safety, accountability, and private participation.

The draft rules propose a single composite licence that will cover the entire lifecycle of a nuclear power plant, including construction, ownership, operation, and decommissioning. This eliminates the need for multiple permits and streamlines the approval process, ensuring faster project execution while retaining strict oversight.

A major provision is the requirement for nuclear plant operators to maintain insurance, financial security, or a combination of both to cover nuclear damage. This financial security must remain in place until all spent fuel has been removed from the storage pool.

The rules also mandate a five-yearly review of civil liability limits, with a group of experts constituted by the Centre to reassess the maximum liability applicable to operators.

The draft rules establish clear conditions for foreign reactor designs. Any reactor imported into India must be certified or approved by the nuclear regulatory authority of its country of origin. The country of origin must have a self-reliant nuclear reactor design and supply-chain ecosystem, with globally trusted regulatory approvals.

Furthermore, such reactors must already be operational either in their home country or in another foreign jurisdiction before being considered for integration into India’s nuclear framework.

The licensing authority will also be empowered to grant in-principle approval even before a site or technology has been finalised. This provision allows applicants to negotiate with reactor technology vendors and begin acquiring land and infrastructure, thereby accelerating project timelines while maintaining regulatory safeguards.

The rules recognise the importance of captive nuclear power generation, particularly for energy-intensive industries such as aluminium, cement, semiconductor manufacturing, and artificial intelligence data centres. This provision opens new avenues for industrial self-reliance in energy supply, reducing dependence on conventional sources.

The draft rules supersede several older regulations, including those governing radioactive waste disposal, radiation protection, and nuclear liability funds. By consolidating these frameworks, the SHANTI Act seeks to modernise India’s nuclear governance and align it with international best practices.

Public consultation has been invited, with stakeholders, industry representatives, and experts asked to submit feedback by 4 September 2026. This participatory approach ensures that the final rules will incorporate diverse perspectives from both domestic and international stakeholders.

The SHANTI Act, 2025 itself replaced the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, enabling private and foreign participation in India’s nuclear sector.

The draft rules now provide the operational clarity required to implement this landmark legislation, ensuring that India’s nuclear expansion is both safe and globally credible.

This regulatory overhaul comes at a time when India is targeting 100 GW of nuclear power capacity by 2047 as part of its clean energy transition.

By combining streamlined licensing, strict liability provisions, and transparent rules for foreign technology integration, the draft rules lay the foundation for a resilient and future-ready nuclear ecosystem.

Agencies