Cabinet Clears SHANTI Bill To Allow Private Players In Nuclear Energy Field

Cabinet Clears SHANTI Bill To Allow Private Players In Nuclear Energy Field

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Atomic Energy Bill, 2025, branded as SHANTI – Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India. This legislation marks the most significant reform in India’s atomic energy sector since its inception, breaking the decades-old monopoly of the Department of Atomic Energy (DAE) and opening the doors for private participation in a domain that has remained tightly controlled and shrouded in secrecy for over 60 years. 

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The Bill is expected to be tabled in Parliament early next week, either Monday or Tuesday, during the ongoing Winter Session. Once enacted, SHANTI will consolidate multiple existing laws, address regulatory gaps, and create a unified legal framework to accelerate nuclear expansion at scale.

Why This Matters

India has set an ambitious target: 100 gigawatts (GW) of nuclear power capacity by 2047, nearly a eleven-fold increase from current levels. Today, the country operates 25 reactors with a combined installed capacity of 8,880 megawatts, and 17 more reactors are under various stages of construction. 

The roadmap aims to reach 22,000 MW by 2032, before scaling up to 100 GW by 2047 – an essential step toward achieving net-zero carbon emissions by 2070 and realising the vision of Viksit Bharat. India’s base load power can only be met with atomic energy once the coal and gas-based thermal plants are decommissioned to fight climate change.

Meeting these targets will require massive capital infusion, cutting-edge technology, and faster project timelines – conditions that cannot be fulfilled by government funding alone. By inviting private players into the nuclear ecosystem, the SHANTI Bill seeks to unlock investment, spur innovation, and position nuclear energy as a central pillar of India’s clean-energy future.

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On November 27, 2025, while inaugurating the campus of Skyroot Aerospace, Prime Minister Narendra Modi had said, “We are moving toward opening the nuclear sector as well. We are laying the foundation for a strong role for the private sector in this field too. This reform will give new strength to our energy security and technological leadership.’ India is already a nuclear weapons state having acquired atomic bombs in 1998.

What Changes Under SHANTI

Private Sector Entry: For the first time, private companies will be allowed to participate in core activities such as exploration of atomic minerals, fuel fabrication, equipment manufacturing, and potentially even aspects of plant operations.

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Modern Legal Framework: The Bill replaces outdated provisions of the Atomic Energy Act, 1962, creating a streamlined structure for licensing, safety, and compliance.

Regulatory Strengthening: A new independent nuclear safety authority is expected to be established to ensure transparency and adherence to global standards.

Liability Reforms: Amendments to the Civil Liability for Nuclear Damage Act will clarify operator and supplier responsibilities, introduce insurance-backed caps, and provide government backstops-critical to attracting private and foreign investment.

Nirmala Sitharaman’s Big Push

In her recent Budget speech, Finance Minister Nirmala Sitharaman announced the creation of a “Nuclear Energy Mission for Viksit Bharat” and emphasised the need to amend laws that have constrained growth. She declared: “Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up.”

The Finance Minister also unveiled a Rs 20,000 crore outlay for research and development of Small Modular Reactors (SMRs), with a target to operationalize at least five indigenously developed SMRs by 2033. These compact reactors are expected to play a key role in industrial decarbonisation and grid flexibility.

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The Road Ahead

NPCIL (Nuclear Power Corporation of India Limited) plans to contribute at least 50 per cent of the 100 GW target, while the rest will come from private players and imported reactors. NPCIL CMD Bhuwan Chandra Pathak told NDTV that the corporation will commission at least one reactor every year, signalling a steady ramp-up.

Challenges, however, remain. Nuclear projects are capital-intensive and complex, requiring robust safety oversight and public engagement. Fuel security, liability clarity, and regulatory capacity will be critical to success.

Why It is a Game-Changer

Energy Security: Reduces dependence on fossil fuels and stabilizes India’s energy mix.

Climate Goals: Positions nuclear as a backbone of India’s decarbonisation strategy.

Economic Opportunity: Opens a multi-billion-dollar market for domestic and global players in engineering, manufacturing, and technology.

The SHANTI Bill is not just a policy reform-it is a bold bet on India’s clean-energy future. If Parliament clears the legislation, India will enter a new era where private innovation and public oversight combine to deliver safe, reliable, and carbon-free power at scale.