Atomic Energy Bill 2025 (SHANTI Bill): Nuclear Power Sector
Atomic Energy Bill 2025 (SHANTI Bill) boosts India’s energy security with $214bn private nuclear investment, 49% FDI, ₹1,500Cr liability cap, and 100 GW target by 2047.
UPSC Prelims
Current affairs
Latest Update
Gajendra Singh Godara
Dec 16, 2025
4
mins read
India is rewriting its nuclear energy rules. The Union Cabinet has approved the Atomic Energy Bill, 2025, officially branded as the SHANTI Bill. This legislation ends the government's decades-old monopoly on nuclear power generation. It opens the doors for private companies to build, own, and operate nuclear plants.
Here is a breakdown of what the SHANTI Bill means for India’s energy future.
SHANTI stands for Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India.
This new umbrella law repeals two older acts:
The Atomic Energy Act, 1962.
The Civil Liability for Nuclear Damage Act, 2010 (CLND Act).
The government introduced this bill to modernize India's nuclear architecture. It aims to boost India's nuclear power capacity from the current 8.8 GW to 100 GW by 2047.
The SHANTI Bill introduces four major changes to the sector.
1. Private Sector Entry
For the first time, private companies can enter the entire nuclear value chain. The bill allows private players to participate in India's Nuclear Sector:
Plant Operations: Companies can now build, own, and operate nuclear power plants.
Fuel Cycle: Private firms can handle nuclear fuel fabrication and uranium exploration.
Equipment Manufacturing: The bill encourages the manufacturing of heavy reactor components.
Previously, only state-owned entities like the Nuclear Power Corporation of India Limited (NPCIL) could run these plants. The bill now permits up to 49% Foreign Direct Investment (FDI) in nuclear power projects.
2. Liability Reform
The bill fixes the "supplier liability" issue that stalled foreign investment for years.
Scrapping Section 46: The bill removes the contentious clause from the 2010 Act that allowed operators to sue suppliers.
Capped Liability: It introduces insurance-backed caps on liability. The operator caps their liability at ₹1,500 crore per incident.
Government Backstop: The government will cover damages beyond this cap, aligning India with international norms like the Convention on Supplementary Compensation (CSC).
3. Independent Regulator
The bill creates a statutorily Independent Nuclear Safety Authority. This group will manage safety and compliance. These tasks will be separate from the Department of Atomic Energy (DAE), which supports the sector.
4. Small Modular Reactors (SMRs)
The government has launched a ₹20,000 crore Nuclear Energy Mission to support the development of Small Modular Reactors (SMRs).
Target: Operationalize five indigenously developed SMRs by 2033.
Use Cases: These smaller reactors will power energy-intensive industries like steel, cement, and data centers.
India faces a triple challenge: rising energy demand, climate goals, and grid stability.
Net Zero by 2070: Nuclear power provides the "baseload" clean energy needed to balance intermittent solar and wind power.
Data Center Demand: The boom in AI and data centers requires reliable, 24/7 electricity that coal cannot sustainably provide.
Capital Requirement: Expanding to 100 GW requires massive capital. The government cannot fund this alone. It needs private investment of about $26 billion.
This plan aims for 100 GW of nuclear capacity by 2047. The total cost is around $214 billion. The initial push requires about $26 billion from the private sector.
The SHANTI Bill does more than generate power. It strengthens India's strategic autonomy.
Energy Security: reducing dependence on imported coal and gas.
Global Hub: Positioning India as a manufacturing hub for SMRs and nuclear technology.
Jobs: Creating high-skilled jobs in engineering and R&D.
Key Challenges & Solutions for India's Nuclear Energy Expansion
Safety & Regulation: Strengthen independent Nuclear Safety Regulatory Authority (NSRA) oversight for reactor safety and waste disposal. Promote Small Modular Reactors (SMRs) to help reduce carbon emissions and stabilize the grid. Invest ₹20,000 crore in research and development. The goal is to create 5 local SMRs by 2033.
Private Sector & Partnerships: Expand commercial viability through liability reforms aligned with global norms. Deepen strategic partnerships with the US, France, and Russia. Russia's Kudankulam project demonstrates successful cooperation with 2 units operational and 4 more under construction.
Scalability & Technology Mix: Transition from PHWR-dominated (current 8.8 GW) to globally dominant Light Water Reactor (LWR) technology while preserving indigenous capability. India targets 100 GW by 2047 with a balanced portfolio: 46.5 GW PHWR, 38.8 GW PWR, 10 GW SMRs.
Balanced Growth Path: Integrate nuclear energy within India's climate transition strategy while maintaining sovereignty. Ensure clear liability frameworks protecting victim compensation without deterring private investment-critical for achieving 4.15 GW annual capacity growth needed.
