Parliament has passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (Shanti Bill), 2025, marking a historic shift in India’s tightly controlled atomic sector by allowing private participation for the first time since Independence. Prime Minister Narendra Modi hailed the legislation as a “transformational moment” that will safely power AI, enable green manufacturing and drive a clean-energy future, while opening investment doors for the private sector and youth.
Bill’s Core Provisions
Introduced in the Lok Sabha on December 15, 2025, the SHANTI Bill repeals the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage (CLND) Act, 2010, creating a unified modern framework for nuclear activities. It permits private Indian companies, government entities, joint ventures and foreign players (via partnerships) to build, own, operate and decommission nuclear power plants, research reactors, fuel facilities and radiation infrastructure, ending the Nuclear Power Corporation of India Ltd (NPCIL)’s monopoly on operations.
Key features include statutory status for the Atomic Energy Regulatory Board (AERB), enhancing its powers for licensing, inspections, enforcement and public outreach while protecting sensitive data. The bill caps operator liability based on plant capacity, removes supplier liability (a contentious change), and establishes an Atomic Energy Redressal Advisory Council for dispute resolution. It also promotes applications in healthcare, agriculture, water desalination, food processing and AI-enabled nuclear tech, with strict national security safeguards.
Why India Needs SHANTI Bill Now
India’s nuclear capacity stands at just 8.8 GW, contributing under 3% to total power, far below ambitious targets of 100 GW by 2047 and energy independence by 2070. Fossil fuels dominate at 75%, hindering net-zero goals amid surging demand from EVs, data centers and manufacturing. SHANTI addresses this by unlocking private capital—estimated at $26 billion—for Small Modular Reactors (SMRs), fuel fabrication and equipment manufacturing, accelerating timelines stalled by public funding limits.
The Shanti bill modernizes outdated 1962 laws unfit for emerging tech like SMRs and AI-radiation applications, while balancing innovation with safety. It aligns with global trends where private firms like NuScale and TerraPower build advanced reactors, positioning India to export nuclear tech and attract FDI without compromising sovereignty.
Legislative Journey and Debates
The Union Cabinet approved SHANTI on December 11, 2025, tabling it during the Winter Session amid opposition demands for a select committee review. The Lok Sabha passed it on December 17 after debate, followed by Rajya Sabha approval the same day despite protests over diluted liability and foreign influence fears. Union Minister Jitendra Singh defended it, stressing unchanged safety norms and AERB’s independence. Amendments were rejected, with MPs like Shashi Tharoor warning of risks, but the government prevailed on voice votes.
Discussions echoed 2011’s failed Nuclear Safety Regulatory Authority Bill, but SHANTI Bill’s private-entry focus reflects post-2024 policy shifts under Viksit Bharat, spurred by global nuclear revival post-COP28 pledges.
Benefits for India and Private Sector
SHANTI Bill supercharges clean energy: nuclear’s baseload reliability will power AI data centers (projected 10x growth) and green steel/chemicals, cutting emissions 20-30% cheaper than intermittents. It creates a $50-100 billion market for domestic firms like Tata Power, Adani and Reliance in mining, reactors and waste management, generating 5-10 lakh jobs in engineering and R&D.
Youth gain via skilling in nuclear tech; startups eye SMRs and isotopes for medicine/agri. Globally, it boosts India’s credentials, enabling tech exports and joint ventures with US/France under i2U2 and clean energy pacts.
Opposition Concerns and Safeguards
Critics flagged liability dilution—removing supplier accountability post-Fukushima—and rushed passage without committee scrutiny. The government countered that operator caps (scaled to capacity) maintain CLND rigor, with AERB’s statutory teeth ensuring IAEA-aligned safety, security and non-proliferation. No foreign land ownership or fissile material control is ceded.
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Modi’s Vision and Next Steps
Modi urged “invest, innovate and build in India,” tying SHANTI Bill to AI-green synergies. Implementation starts with AERB notifications, licensing auctions and NPCIL-private JVs. By 2030, 22-25 GW additions are targeted, scaling to 100 GW via 20+ new plants/SMRs. Success hinges on execution, but SHANTI positions nuclear as India’s clean baseload backbone for Viksit Bharat.
The passing of the SHANTI Bill by both Houses of Parliament marks a transformational moment for our technology landscape. My gratitude to MPs who have supported its passage. From safely powering AI to enabling green manufacturing, it delivers a decisive boost to a clean-energy…
— Narendra Modi (@narendramodi) December 18, 2025
