Private Players Set to Enter Nuclear Power: What the SHANTI Bill Means for India

New Delhi: The government has moved a step closer to opening India’s tightly controlled nuclear sector. By introducing the SHANTI Bill 2025 in the Lok Sabha, the Centre is signalling a clear break from the past, one where only the state ran nuclear power projects.

What is the SHANTI Bill, and why does it matter?

On Monday, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, was tabled in the Lok Sabha. At its core, the bill seeks to rewrite the rules of India's civilian nuclear program and bring private Indian companies into the picture.

If Parliament clears the bill, two key laws, the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, will be scrapped. These laws, especially the liability framework, have for years been seen as the main reason why nuclear investment in India never really took off.

Why is the government pushing this change now?

The government says the timing is driven by energy needs and climate commitments. Union Minister of State Jitendra Singh told the House that the bill provides a more workable liability system for nuclear accidents and gives legal backing to the Atomic Energy Regulatory Board.

Officials argue that as India’s power demand rises, nuclear energy can no longer remain on the margins. The idea is to increase its share in the energy mix, encourage innovation, and ensure India meets global safety and legal standards.

What new doors will open for private companies?

For the first time, Indian private firms will be able to apply for licences to build and run nuclear power plants. They can own reactors, operate them, and even decommission them once their life cycle ends.

So far, this space has been dominated by government entities like the Nuclear Power Corporation of India Limited and their joint ventures. The proposed change could bring fresh capital, faster execution, and new technology into the sector.

If there’s an accident, who is responsible?

This is where the most significant change lies. Under the SHANTI Bill, the responsibility for any nuclear accident will rest entirely with the plant operator. Suppliers of equipment or technology will not be held liable.

This is a key shift from earlier rules and addresses concerns that made many foreign companies hesitant to invest in India.

How much liability are we talking about?

The bill fixes a clear upper limit on compensation, in line with global norms. For each nuclear incident, the liability cap will be set at 300 million Special Drawing Rights (SDRs), a unit used by the International Monetary Fund.

Operators will have to maintain insurance or a liability fund depending on the size of their reactor. This could range from roughly 11 million to 330 million dollars. If claims exceed this amount, a separate nuclear liability fund will be used. Beyond that, the government will step in.

What will stay firmly under government control?

Despite opening doors to private players, the government is drawing clear red lines. Only companies registered in India will be eligible for licences. Firms registered abroad or controlled by foreign entities will not be allowed.

Sensitive activities such as fuel enrichment, reprocessing of used nuclear fuel, and certain water production technologies will remain exclusively with the government.

How does this fit into India's climate plans?

The bill is closely tied to India's long-term plans. The government has committed to achieving net-zero emissions by 2070 and wants to ramp up nuclear power capacity to 100 gigawatts by 2047.

At present, India's nuclear capacity is about 8.2 gigawatts. Officials say private participation is essential if the country wants nuclear power to play a meaningful role in a clean and reliable energy future.