India’s civil nuclear energy framework has entered a new phase with the introduction of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill (SHANTI Bill), 2025. Tabled by the Union Government, the legislation marks a structural shift in the governance of nuclear power by allowing private sector participation for the first time since Independence in a domain that has historically remained under exclusive government control.
The SHANTI Bill seeks to modernise India’s nuclear energy ecosystem by creating a unified legal and regulatory framework. It proposes amendments to existing laws, including the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, with the objective of enabling private investment while retaining strategic oversight with the state.
Below are five key provisions of the SHANTI Bill that define its scope and impact.
- Entry of Private Players into Nuclear Power Generation
The Bill permits private companies and joint ventures to participate in the development of nuclear power projects. Under the proposed framework, eligible private entities will be allowed to build, own, operate and decommission nuclear power plants and reactors. This provision represents a fundamental departure from the earlier model, under which nuclear power generation was restricted to public sector entities.
- Cap on Private Sector Investment
Private participation in nuclear power projects will be subject to a foreign and domestic investment cap of 49 per cent. This limit is designed to allow meaningful private involvement while ensuring that majority ownership and strategic control remain with government-linked entities. The provision establishes a mixed ownership structure for nuclear projects without fully privatising the sector.
- Unified Legal and Regulatory Framework
To create regulatory clarity, the SHANTI Bill proposes amendments to multiple existing laws governing nuclear energy. By aligning provisions under a single legislative framework, the Bill aims to simplify licensing procedures, strengthen regulatory oversight and harmonise compliance requirements. This consolidation is intended to reduce procedural complexity across project approvals, operations and oversight.
- Revised Nuclear Liability and Dispute Resolution Mechanism
The Bill introduces changes to the nuclear liability regime by proposing clearer allocation of responsibilities among operators, suppliers and other stakeholders. It also provides for the establishment of a dedicated atomic disputes tribunal. This specialised body is intended to address disputes related to nuclear operations, contracts and liabilities, offering a structured mechanism for resolution within the sector.
- Retention of Strategic Functions with the State
While private entities are allowed to participate across several stages of the nuclear power value chain, the Bill clearly reserves strategic and sensitive activities for the government. Functions such as nuclear material production, heavy water manufacturing and radioactive waste management will continue to remain under the control of the Department of Atomic Energy. This provision preserves state oversight over critical national security and safety-related aspects of nuclear energy.
Broader Implications
The shift from a government-only monopoly to a hybrid governance model is expected to reshape India’s nuclear energy landscape. The framework enables participation in project development, plant construction and supporting infrastructure while maintaining public control over core strategic assets. The Bill also creates space for the adoption of newer technologies, including small modular reactors, within a regulated environment.
Summary
The SHANTI Bill, 2025, introduces private participation into India’s nuclear power sector through a restructured legal and regulatory framework. Key provisions include permitting private ownership and operation of nuclear plants, capping private investment at 49 per cent, streamlining regulatory laws, revising liability mechanisms with a dedicated tribunal, and retaining strategic nuclear functions under state control. Together, these measures mark a significant evolution in India’s civil nuclear energy policy.
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