With the possibility of being placed before the President of India on December 17, 2025, the “Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025” has been passed by the Lok Sabha. The bill marks a historic shift in India’s nuclear energy sector, as it proposes opening a field that has remained entirely under government control to regulated private participation for the first time.

This legislation signals a transformative moment in India’s energy policy, balancing investment, technology advancement, and national security concerns.

Background: India’s Nuclear Energy Framework

India has been active in the nuclear energy domain for nearly 70 years, with the sector strictly regulated by the State and guided by environmental and safety priorities. Two key legislations have governed this space:

1. Atomic Energy Act, 1962

Enacted in 1962, this Act regulates nuclear science and energy usage in India. Its primary objectives include:

• Ensuring that the development, control, and use of nuclear energy remain exclusively under government authority for peaceful purposes.

• Restricting activities such as nuclear fuel production, reactor construction, and radiological research to government-owned entities only.

• Granting the Central Government complete leadership and regulatory powers over all nuclear-related operations.

Due to security concerns, this Act effectively barred private companies from participating in nuclear power generation.

2. Civil Liability for Nuclear Damage Act, 2010

Passed in 2010, commonly referred to as the CLND Act, this law established a compensation framework for victims of nuclear accidents:

• It introduced a “no-fault liability regime”, placing primary responsibility on the reactor operator.

• Suppliers and manufacturers were largely protected from direct liability.

• The operator’s liability was capped (for example, up to ₹1,500 crore for large reactors), with additional compensation support from a government-created nuclear damage fund.

• The Act was aligned with international nuclear liability conventions.

This legislation became necessary after the India–US Civil Nuclear Agreement (2008), as foreign suppliers sought legal clarity regarding accident liability before investing in India.

Why the SHANTI Bill Was Needed

Despite decades of experience, India’s nuclear power generation and research have not expanded at the desired pace. Meanwhile:

• India has set an ambitious target of 100 GW of nuclear power capacity by 2047.

• Advanced technologies such as Small Modular Reactors (SMRs) require substantial private investment and innovation.

• Certain liability provisions under the CLND Act discouraged foreign suppliers and investors.

The SHANTI Bill aims to modernize existing laws and create a comprehensive, investment-friendly framework while maintaining strong safety standards.

Key Features of the SHANTI Bill

1. Public–Private Partnership Model

• The bill allows regulated entry of private and foreign companies into the nuclear sector.

• Private entities may hold up to 49% equity, while operational control remains with government-regulated bodies.

• Reactor construction, operation, and fuel supply will require strict licensing and approvals.

2. Liability and Compensation Framework

• Operator liability is retained, but compensation limits are revised to range from ₹100 crore to ₹3,000 crore, depending on reactor capacity.

• Supplier liability has largely been removed, addressing a major concern of foreign vendors under the CLND Act.

• A government-backed compensation fund will support victims in case of severe accidents.

3. Regulation and Safety Oversight

• The Atomic Energy Regulatory Board (AERB) is granted statutory status, strengthening its independence and authority.

• Radiation control, safety protocols, and plant operations will be governed by strict regulatory standards.

Opposition to the SHANTI Bill: Why the Walkout?

During the bill’s passage, opposition parties staged a walkout, citing several concerns:

1. Safety and Liability Risks

Opposition leaders argue that reducing supplier liability may weaken compensation mechanisms for victims in case of nuclear accidents.

2. Public Safety and Environmental Impact

Some scientists warn that nuclear accidents can have catastrophic consequences, demanding a more comprehensive liability framework.

3. Lack of Parliamentary Scrutiny

The opposition demanded that the bill be referred to a Parliamentary Standing Committee, a step the government bypassed.

4. Pressure for Rapid Investment

Trade unions and activist groups have announced plans for nationwide protests, fearing that aggressive privatization could harm domestic industries and public interests.

Government’s Perspective

The government views the SHANTI Bill as a strategic opportunity:

• To position India as a global energy leader.

• To enhance energy security, attract investments, and foster technological innovation.

• To achieve the 100 GW nuclear capacity target by 2047, with private sector participation playing a crucial role.

Three Key Questions — Answered

1. Does the SHANTI Bill repeal the 1962 and 2010 Acts entirely?

Yes. The bill aims to replace both laws with a unified, modern, and private-sector-friendly regulatory framework.

2. Does it grant full control to private companies?

No. Private participation is capped at 49% ownership, while licensing, fuel control, and safety oversight remain firmly under government authority.

3. How has nuclear liability changed?

Operator liability continues, supplier liability is reduced, and a government-supported compensation fund has been introduced.

Conclusion

The SHANTI Bill is expected to unlock unprecedented levels of private investment, accelerate technological advancement, and enable rapid capacity expansion in India’s nuclear energy sector. It could be instrumental in achieving the 100 GW nuclear power goal by 2047.

However, opposition parties, lawmakers, scientists, and labor unions stress that stronger safeguards, clearer accountability, and enhanced public protection are essential as India moves forward.

Ultimately, the SHANTI Bill stands at a critical intersection of national energy priorities, safety concerns, and private investment interests, making it one of the most consequential policy reforms in India’s energy history.