The SHANTI Bill 2025 | Opening the Nuclear Energy Sector in India

The SHANTI Bill (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India), 2025, represents the most significant legislative reform in India’s atomic history since 1962. By repealing the outdated Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, the SHANTI Bill has created a unified, modern legal framework. This shift is designed to propel India toward its ambitious goal of 100 GW of nuclear capacity by 2047.

Ending the Monopoly: Private Entry Under the SHANTI Bill

The core objective of the SHANTI Bill is to end the state-led monopoly of the Nuclear Power Corporation of India Limited (NPCIL). For the first time since Independence, the SHANTI Bill permits private Indian companies and joint ventures to:

• Build, own, and operate nuclear power plants.
• Decommission reactors at the end of their lifecycle.
• Fabricate nuclear fuel (up to specific government-notified thresholds).

While the sector is now open, the SHANTI Bill retains strategic state control over sensitive “front-end” and “back-end” activities, such as uranium enrichment beyond notified levels, spent fuel reprocessing, and heavy water production.

Small Modular Reactors (SMRs) and the SHANTI Bill Framework

A major highlight of the SHANTI Bill is its dedicated focus on Small Modular Reactors (SMRs). These reactors, typically under 300 MW, are the future of industrial decarbonization. The SHANTI Bill provides the regulatory clarity needed for “Bharat Small Reactors” (BSRs), allowing heavy industries like steel and cement to set up captive nuclear units.

By facilitating SMRs, the SHANTI Bill ensures that India can replace coal-based baseload power with stable, carbon-free electricity that complements intermittent renewables like solar and wind.

Revised Liability and the “Right of Recourse”

One of the most debated aspects of the SHANTI Bill is the overhaul of the liability regime. To attract global technology partners and domestic investors, the SHANTI Bill has recalibrated the “Right of Recourse” against suppliers.

1. Exclusive Operator Liability: Unlike the 2010 Act, the SHANTI Bill focuses liability primarily on the operator.
2. Tiered Liability Caps: The Bill introduces graded caps based on plant size, ranging from ₹100 crore for SMRs to ₹3,000 crore for large-scale reactors.
3. Supplier Immunity: In alignment with international conventions, the SHANTI Bill removes the provision that allowed operators to sue suppliers for defective equipment, unless expressly provided for in a contract.

Statutory Status for the Regulator (AERB)

The SHANTI Bill grants long-awaited statutory recognition to the Atomic Energy Regulatory Board (AERB). Previously functioning under the Department of Atomic Energy, the AERB is now an independent body accountable to Parliament. The SHANTI Bill empowers the AERB with:

• Enhanced inspection and enforcement powers.
• The authority to issue binding safety directives and cancel licenses.
• A structured dispute resolution mechanism via the Appellate Tribunal for Electricity (APTEL).

Conclusion: A 100 GW Clean Energy Future

The SHANTI Bill is not just a law; it is a strategic blueprint for India’s energy independence. By mobilizing private capital (estimated at ₹15-20 lakh crore) and fostering indigenous innovation, the SHANTI Bill ensures that India remains a global leader in the peaceful use of nuclear technology. For a nation striving for Net Zero by 2070, this legislation is the definitive turning point.

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