SHANTI Bill to open nuclear sector to private players, repealing decades-old laws

The Narendra Modi government introduced a landmark bill in parliament on Monday aimed at overhauling the country's civilian nuclear energy sector by allowing private companies to participate in building and operating atomic power plants, a move intended to boost capacity and attract investment amid growing energy demands.

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, was tabled in the lower house of parliament, the Lok Sabha, by Minister of State for Atomic Energy Jitendra Singh. The legislation seeks to repeal the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, replacing them with a framework that encourages private sector involvement while capping liability for nuclear incidents.

"The bill aims to support large-scale expansion of nuclear energy and radiation applications across power and non-power sectors," Singh said in parliament, according to a statement from the Department of Atomic Energy. It aligns with Prime Minister Narendra Modi's push for clean, reliable energy to power data centres, manufacturing and achieve net-zero emissions by 2070.

India, the world's third-largest energy consumer, currently generates about 3% of its electricity from nuclear sources, with a capacity of around 7.5 gigawatts (GW). With the privatisation of the sector, the SHANTI Bill targets expanding this to 100 GW by 2047, including through small modular reactors (SMRs) – compact, factory-built units seen as more flexible and cost-effective for industrial applications.

Commerce and Industry Minister Piyush Goyal highlighted nuclear power's role in providing 24/7 clean energy, noting that the bill would position it as a backbone for data centres and industries requiring an uninterrupted supply.

Private firms would be permitted up to 49% equity in nuclear projects, marking a departure from the 1962 act's state monopoly on atomic energy activities.

The bill addresses long-standing investor concerns by limiting nuclear operators' liability to 30 billion rupees ($354 million) in the event of an accident, based on plant size, while shielding global suppliers from extended claims.

This "pragmatic" approach to liability is designed to attract foreign technology and capital, with the sector estimated to require $214 billion in investments.

The SHANTI Bill differs significantly from earlier nuclear legislation. The 1962 Atomic Energy Act restricted all nuclear activities to government entities, stifling private innovation and foreign partnerships. The 2010 Civil Liability Act, enacted in the wake of the U.S.-India nuclear deal, imposed stringent supplier liability provisions that deterred international firms like GE and Westinghouse from committing to projects due to fears of unlimited recourse claims.

What SHANTI Bill seeks to change

In contrast, SHANTI eases these clauses, capping operator compensation and eliminating broad supplier accountability to align with International Atomic Energy Agency (IAEA) norms and boost transparency. It also promotes non-power uses of nuclear technology, such as in healthcare and agriculture, which were underdeveloped under prior laws.

Opposition parties have raised concerns over safety and environmental risks, with some calling for stricter regulatory oversight. The bill's introduction comes amid a chaotic winter session of parliament, marked by disruptions over unrelated issues, but the ruling Bharatiya Janata Party issued a three-line whip to ensure attendance for key votes this week.

If passed, the legislation could transform India's energy landscape, reducing reliance on coal – which accounts for over 70% of power generation – and supporting economic growth projected at 7% annually. Analysts estimate it could unlock opportunities for engineering firms like Larsen & Toubro and Bharat Heavy Electricals, though details on implementation remain pending.

The bill is expected to be debated further in the coming days, with potential amendments before a vote in both houses of parliament.