SHANTI Bill, 2025: Rewiring India’s nuclear future

For nearly seven decades, nuclear energy in India existed behind high institutional walls — strategic, secretive and state-controlled. Born in the shadow of national security imperatives and shaped by Cold War anxieties, India’s nuclear governance evolved as a monopoly of the state, insulated from market forces and private enterprise. The SHANTI Bill, 2025, (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) decisively breaks from this past. By repealing the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, it marks the most consequential reimagining of nuclear governance since independence.At its core, the SHANTI Bill is not merely a legal reform; it is a philosophical shift from a strategic asset mindset to a developmental infrastructure mindset. It seeks to position nuclear power as a credible pillar of India’s energy transition, industrial growth and climate commitments.Opening the nuclear gatesFor decades, nuclear power generation was the exclusive preserve of the Department of Atomic Energy (DAE) and public sector entities such as NPCIL. This model ensured control but came at a cost: limited capital, slow capacity addition and technological insularity.The SHANTI Bill dismantles this monopoly with caution rather than recklessness. Private sector participation is now permitted in building, owning and operating nuclear power plants.The government retains majority ownership, while private players can hold up to 49% equity, balancing strategic oversight with commercial efficiency.Crucially, private firms gain access across the entire nuclear value chain — uranium exploration, fuel fabrication, reactor components and plant construction.For India, which aims to triple nuclear capacity as part of its low-carbon energy mix, this shift unlocks capital, innovation and scale that the public sector alone cannot deliver.Fixing the liability knot: Pragmatism over exceptionalismNo reform has haunted India’s nuclear ambitions more than the Civil Liability for Nuclear Damage Act, 2010. Its provision granting operators a “right of recourse” against suppliers made India an outlier globally and deterred foreign reactor vendors.The SHANTI Bill confronts this reality head-on.Supplier liability is capped, aligning India with international nuclear liability conventions.A state-backed nuclear insurance pool absorbs catastrophic risk, ensuring victims are compensated without paralysing operators.A Nuclear Damage Claims Commission replaces legal ambiguity with a clear, time-bound adjudication mechanism.This is a hard-nosed recognition that without legal certainty, nuclear cooperation — whether with France, the US or indigenous private firms — would remain stalled. From an exam perspective, this reform reflects the tension between public safety and investment confidence, a recurring governance dilemma.A regulator that regulates: Strengthening safety architectureIndia’s nuclear safety framework has long faced criticism for blurred lines between promoter and regulator. The Atomic Energy Regulatory Board (AERB) functioned under executive authority, reporting to the same ecosystem it was meant to police.The SHANTI Bill addresses this structural flaw.The AERB is granted statutory status, anchoring its authority in law rather than executive discretion.A broader Nuclear Safety Authority is envisioned, strengthening oversight over safety, security and quality assurance.The separation of roles — policymaker, promoter and regulator — aligns India with best global practices.For students, this reform is a textbook example of institutional design for regulatory independence, a key GS-II theme.Small modular reactors: Nuclear power goes localPerhaps the most future-facing element of the SHANTI Bill is its explicit embrace of Small Modular Reactors (SMRs) and Bharat Small Reactors (BSRs).Unlike conventional large reactors, SMRs offer:Faster deployment and lower upfront costsDecentralised energy solutions, including captive power for steel, cement, and chemical industriesFlexibility for remote regions and industrial clustersBy providing a dedicated legal framework and easing technology transfer norms, the Bill positions India to leapfrog into modular nuclear technologies, an area where global competition is intensifying. From an economic geography lens, SMRs integrate energy policy with regional development.One law, one window: Simplifying governance and disputesFragmented laws and jurisdictional confusion have long plagued India’s nuclear sector. The SHANTI Bill consolidates governance under a single umbrella statute, reducing procedural friction.A Nuclear Energy Redressal Advisory Council is proposed.APTEL is designated as the appellate authority for nuclear disputes, removing them from overburdened civil courts.This reform is investor-friendly yet institutionally grounded, signalling that nuclear energy is no longer treated as an administrative exception but as a regulated infrastructure sector.A calculated leap, not a blind jumpThe SHANTI Bill, 2025, is neither reckless liberalisation nor mere incremental reform. It is a calculated leap recognising that energy security, climate action and industrial growth demand a rethinking of nuclear governance. By opening doors to private capital, fixing liability distortions, empowering regulators and embracing next-generation technologies, the Bill seeks to normalise nuclear power within India’s broader economic framework.Yet, the success of SHANTI will rest not on legislative intent alone but on implementation discipline, regulatory credibility and public trust. Nuclear energy tolerates no governance shortcuts. If executed with rigour, SHANTI could transform India from a cautious nuclear state into a confident nuclear economy — responsibly harnessing the atom for national transformation.

SHANTI Bill, 2025: Rewiring India’s nuclear future

From guarded strategic enclave to regulated commercial ecosystem, India’s nuclear sector stands at a historic crossroads

Ivninder Pal Singh

Tribune News Service

SHANTI Bill, 2025: Rewiring India’s nuclear future

From guarded strategic enclave to regulated commercial ecosystem, India’s nuclear sector stands at a historic crossroads

Ivninder Pal Singh

Tribune News Service

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