The government on Monday introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (SHANTI Bill) in the Lok Sabha, marking a major shift in India's civil nuclear policy. Tabled by Minister of State for Science and Technology Jitendra Singh, the bill seeks to dismantle decades of state monopoly and open the nuclear power sector to private participation. If cleared by both Houses of Parliament, the proposed legislation will repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, two laws that industry stakeholders and foreign partners have long cited as hurdles to investment in nuclear energy.
Explaining the intent behind the legislation, Jitendra Singh said, "The Bill seeks to provide for a pragmatic civil liability regime for nuclear damage and to confer statutory status to the Atomic Energy Regulatory Board." The government said the SHANTI Bill is designed to support India's long-term energy strategy by boosting nuclear power capacity, promoting innovation in nuclear science and technology and expanding non-power applications while meeting global safety and security commitments.
Private firms to enter nuclear power generation
One of the most significant changes proposed under the bill is allowing Indian private companies to apply for licences to build, own, operate and decommission nuclear power plants and reactors. Until now, these activities have largely been restricted to the Nuclear Power Corporation of India and joint ventures involving state-owned firms. The bill clearly limits liability in the event of a nuclear incident to plant operators and exempts equipment suppliers, a move aimed at addressing long-standing concerns of foreign vendors. The maximum liability for each incident has been capped at the rupee equivalent of 300 million Special Drawing Rights, in line with international norms.
Insurance cover and nuclear liability fund
Under the proposed framework, operators will be required to maintain insurance or liability funds ranging from approximately USD 11 million to USD 330 million, depending on the size of the reactor. A dedicated nuclear liability fund will be created to handle claims beyond this limit, with the government stepping in if damages exceed the capped amount. Private companies incorporated in India will also be eligible to undertake activities such as nuclear fuel fabrication, transportation and storage of nuclear and spent fuel and the import or export of approved equipment, technology and software.
Foreign control barred, sensitive areas reserved
The bill makes it clear that companies incorporated outside India or controlled by foreign entities will not be allowed to hold nuclear licences. Sensitive operations such as fuel enrichment, spent-fuel reprocessing and heavy water production will continue to remain under exclusive government control. It is to be noted here that the SHANTI Bill is closely aligned with India's climate commitments, including achieving net-zero emissions by 2070 and expanding nuclear power capacity to 100 gigawatts by 2047. At present, India's installed nuclear capacity stands at around 8.2 gigawatts.
ALSO READ: Lok Sabha refers Viksit Bharat Shiksha Adhikshan Bill to JPC
