India Opens Nuclear Sector to Private Players with SHANTI Bill: A Landmark Energy Reform

The Union Cabinet has approved the Atomic Energy Bill, 2025, known as the SHANTI Bill (Sustainable Harnessing and Advancement of Nuclear Technologies and Innovations), marking one of the most transformative reforms in India’s civil nuclear sector since independence. For decades, India’s nuclear energy ecosystem has been tightly controlled by the Department of Atomic Energy (DAE) and the Nuclear Power Corporation of India Limited (NPCIL). With this new legislation, the government aims to create a more flexible, competitive, and innovation-driven framework by allowing private companies to participate meaningfully in nuclear power generation, fuel processing, equipment manufacturing, and advanced reactor technologies.

The Bill is expected to be tabled during the ongoing Winter Session of Parliament. Once passed, it will replace outdated regulatory structures and bridge long-standing gaps that have slowed India’s ability to scale nuclear power in line with rising energy needs and climate goals.

Image from NDTV

Opening the Nuclear Sector to Private Participation

The SHANTI Bill represents a major shift in India’s approach to nuclear energy. It introduces a unified legal structure that permits private corporations to engage across the value chain—from mining atomic minerals and fabricating fuel to developing new technologies such as Small Modular Reactors (SMRs). These provisions not only open the door for domestic companies but also create space for foreign direct investment under regulated conditions. Industry analysts believe this shift is necessary to attract large investments, boost domestic manufacturing, and modernize India’s nuclear infrastructure, which has historically struggled with long construction timelines and limited capacity expansion.

At the policy level, the Bill draws comparisons with the opening of India’s space and defence sectors to private players, which resulted in rapid innovation and increased efficiency. By replicating that model in nuclear energy, the government aims to accelerate the nation’s transition toward cleaner and more reliable power sources.

Strengthening Regulation and Safety Standards

To accompany the expansion of private participation, the SHANTI Bill proposes the creation of an independent nuclear safety authority. This body will ensure stronger compliance with international safety norms set by global institutions such as the IAEA. It will also oversee plant design approvals, safety audits, licensing, and the long-term monitoring of nuclear installations. The Bill additionally introduces specialised tribunals to resolve disputes in nuclear projects, ensuring faster, more transparent decision-making.

Liability—one of the biggest barriers to private and foreign participation—is also addressed through clearer provisions under the Civil Liability for Nuclear Damage framework. These reforms are designed to balance safety with the need to create a business-friendly environment in which nuclear suppliers and operators can invest without disproportionate legal exposure.

India’s Ambitious Nuclear Expansion Goals

The reforms align with India’s long-term energy vision, which includes an ambitious target of expanding nuclear capacity to 100 gigawatts (GW) by 2047. This is a major leap from the current 8–9 GW, generated across 25 operational reactors. With electricity demand expected to double by 2040 and coal-based generation facing environmental limitations, nuclear energy is seen as a crucial pillar for achieving India’s net-zero emissions goal by 2070.

The government’s broader Nuclear Energy Mission, announced in the Union Budget 2025–26, further strengthens this push by allocating significant funding for advanced technologies. This includes ₹20,000 crore for R&D in SMRs, along with plans to deploy at least five indigenous SMRs by 2033. The combination of legislative reform, financial support, and private participation is expected to speed up reactor construction, promote innovation, and reduce dependence on fossil fuels.

Challenges and Considerations Ahead

While the SHANTI Bill has been welcomed by industry experts, it also brings important challenges. Public perception surrounding nuclear safety remains sensitive, particularly due to incidents worldwide that have shaped global attitudes. Ensuring transparency, strong regulation, and clear communication will be essential to building long-term trust.

Moreover, nuclear power remains capital-intensive, with long project timelines and complex supply chains. Private companies will require stable policies, predictable tariffs, and adequate liability protections to make investments viable. The success of the Bill will depend on how well India manages these structural challenges while maintaining high safety standards.

The MGMM Outlook

India’s decision to open the nuclear sector to private participation through the SHANTI Bill marks a turning point in the country’s clean-energy journey. For the first time, private players will be able to contribute across the nuclear value chain—fuel processing, reactor technology, equipment manufacturing, and advanced innovations like SMRs. This shift modernises a system that remained restricted for decades under DAE and NPCIL, creating opportunities for faster expansion, greater investment, and cutting-edge technological development. Strengthened regulatory mechanisms, including an independent nuclear safety authority and clearer liability norms, further ensure that growth does not compromise safety. The reform positions India to accelerate nuclear capacity at a time when the country is seeking alternatives to coal and moving steadily toward its net-zero goals.

The Bill aligns seamlessly with India’s long-term vision of scaling nuclear power to 100 GW by 2047, supported by significant funding for next-generation reactors and streamlined project approvals. As demand for reliable, clean baseload power grows, the move signals a confident shift toward innovation-driven and globally competitive nuclear infrastructure. While long timelines, public perception, and high capital requirements remain challenges, the new framework lays the foundation for collaboration between government and industry at an unprecedented level. The reform stands as a milestone in building an advanced, secure, and future-ready nuclear ecosystem capable of supporting India’s rising energy ambitions.

(Sources: NDTV, Economic Times, Times of India)