New Delhi: In a landmark policy move that reshapes India’s atomic energy landscape, the Lok Sabha on Wednesday passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, paving the way for private sector participation in nuclear power generation. The legislation was approved amid a walkout by Opposition parties, marking one of the most significant reforms in the sector since Independence.
Until now, India’s nuclear energy programme had remained firmly under government control. The passage of the SHANTI Bill signals a decisive shift, allowing private companies to enter a field long reserved for state-owned entities. The government maintains that the reform is critical for energy transition, industrial growth and long-term power security.
The Bill was introduced during the ongoing Winter Session by Minister of State for Atomic Energy Dr Jitendra Singh, who described it as a forward-looking reform aimed at unlocking investment while preserving national security and safety interests.
Turning Point in Nuclear Policy
According to the government, the SHANTI Bill represents a pragmatic and investment-oriented recalibration of India’s nuclear policy. Under the new framework, private companies and joint ventures will be permitted to establish, operate and manage nuclear power plants, as well as undertake the transport of nuclear fuel, subject to regulatory approval.
However, the Centre has drawn clear red lines. Sensitive and strategic operations such as uranium enrichment, spent fuel handling and heavy water production will remain exclusively under the control of the central government. Officials stressed that these restrictions ensure national security and prevent proliferation risks.
Changes to Liability Regime and Regulation
One of the most closely watched aspects of the Bill is the proposed overhaul of the civil liability framework for nuclear damage. The government has argued that the existing liability regime created legal uncertainty and discouraged investment.
The revised provisions aim to balance accountability with risk-sharing, reducing exposure for operators while ensuring adequate compensation mechanisms in the event of a nuclear incident. The intent, according to officials, is to create an environment conducive to long-term private investment without compromising public safety.
The Bill also grants statutory status to the Atomic Energy Regulatory Board (AERB), strengthening its independence and authority. This move is expected to improve transparency, safety oversight and regulatory enforcement, aligning India’s nuclear governance with international best practices.
100 GW Nuclear Capacity by 2047
The government has positioned the SHANTI Bill as a key enabler of India’s ambition to achieve 100 gigawatts of nuclear power capacity by 2047, coinciding with the centenary of Independence. At present, nuclear energy accounts for only a small fraction of India’s total installed power capacity.
With electricity demand rising steadily and pressure mounting to decarbonise the energy mix, the Centre argues that nuclear power—being a stable, clean and low-carbon source—is essential for meeting India’s net-zero commitments and sustaining industrial expansion.
Private participation is expected to bring not only capital, but also efficiency gains, project execution discipline and technological innovation.
Opposition Raises Safety Concerns
The Bill triggered sharp criticism from Opposition parties, who raised concerns over nuclear safety, dilution of liability and the risks of privatisation in a sensitive sector. Several MPs argued that allowing private players into nuclear power could compromise public safety and weaken accountability mechanisms.
After an intense debate, Opposition members staged a walkout from the House, following which the ruling coalition pushed the Bill through.
Government Assurances
Rejecting allegations of compromised safety, the government reiterated that nuclear security remains non-negotiable. All projects, it said, will be governed by strict safety protocols, with continuous oversight by the central government and the empowered AERB.
Control over radioactive materials and radiation-generating equipment will remain firmly with the Centre, officials added, ensuring that strategic and safety interests are protected.
The Road Ahead
Policy analysts say the SHANTI Bill could unlock significant investment and capacity expansion in India’s nuclear sector, but its success will hinge on effective implementation. Much will depend on the clarity of subordinate rules, licensing processes and enforcement of safety standards.
Overall, the passage of the SHANTI Bill signals the government’s readiness to undertake structural reforms in energy policy, positioning nuclear power as a central pillar of India’s long-term development and climate strategy.
