India’s SHANTI Act, 2025 is a landmark law that modernises the nuclear energy sector, enabling private and foreign participation while targeting a massive expansion of capacity from 8.78 GW today to 100 GW by 2047.

The draft rules introduce composite licensing, mandatory insurance, and clear liability frameworks, alongside major investments in Small Modular Reactors (SMRs).

India has notified draft rules under the SHANTI Act to allow private companies into the nuclear energy sector. These rules explain the approvals required, the safety responsibilities, and the financial obligations that private players must meet.

The Act is part of the government’s broader plan to reduce dependence on fossil fuels and expand nuclear power capacity.

The SHANTI Act stands for Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India. It was enacted in 2025 to replace older laws such as the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. Those laws were outdated, and India needed a single, modern framework to cover present and future nuclear requirements.

India currently has 8.78 GW of nuclear power capacity, which contributed about 3.1% of electricity in 2024–25. Several new reactors are under construction, including indigenous 700 MW and 1,000 MW units. The government expects capacity to reach 22.38 GW by 2031–32, with the long-term target of 100 GW by 2047.

The Nuclear Energy Mission, announced in the Union Budget 2025–26, allocated ₹20,000 crore for the development and deployment of Small Modular Reactors. At least five indigenously designed SMRs are planned to be operational by 2033.

BARC is developing the 200 MWe Bharat Small Modular Reactor, the 55 MWe SMR-55, and a high-temperature reactor capable of producing hydrogen.

The draft rules under the SHANTI Act introduce a single-window composite licence covering construction, operation, and decommissioning of nuclear plants. This replaces the earlier system of multiple permits.

They also mandate strict insurance and financial security for nuclear operators, with liability limits ranging from ₹100 crore for smaller facilities to ₹3,000 crore for large plants. The government has set an overall statutory ceiling of 300 million SDRs for nuclear incidents.

Foreign reactor designs can be used only if they are already approved and operational in their country of origin. The rules also require periodic review of operator liability every five years by an expert group. Financial security must remain in place until all spent fuel is removed from storage pools.

Private companies will now be able to build, own, and operate nuclear power plants, as well as participate in research and development.

Foreign direct investment of up to 49% is permitted through joint ventures with Indian entities, ensuring majority domestic control. Firms such as Adani Group, Larsen & Toubro, and TATA Power are expected to benefit from these reforms.

The Atomic Energy Regulatory Board has been given statutory recognition, strengthening oversight of safety, radiation exposure, waste management, and emergency preparedness. The Centre retains exclusive control over sensitive activities such as uranium enrichment, spent fuel management, and heavy water production.

The SHANTI Act thus represents a major transformation of India’s nuclear sector. It combines legal modernisation, private-sector participation, liability reform, and technological innovation. By integrating SMRs, advanced reactors, and foreign collaboration under strict regulation, India aims to achieve energy security, decarbonisation, and technological self-reliance.

Agencies