President Gives Assent to SHANTI Act, Opening India’s Nuclear Sector to Private Players

In a major policy shift with far-reaching implications for India’s energy future, President Droupadi Murmu has granted assent to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, paving the way for private participation in the country’s civil nuclear power sector.

The legislation, which was cleared by both Houses of Parliament during the Winter Session, marks the first time India has formally opened nuclear power generation—long considered a strategic and tightly controlled domain—to private companies under a regulated framework.

President Droupadi Murmu has granted assent to SHANTI Bill | NDTV

What the SHANTI Act Changes

The SHANTI Act fundamentally reshapes India’s nuclear energy architecture by allowing private entities and joint ventures to build, own, operate and decommission nuclear power plants, subject to licensing and regulatory approvals. Until now, nuclear power generation was almost exclusively handled by public sector undertakings, primarily the Nuclear Power Corporation of India Limited.

The government has argued that the move is essential to scale up nuclear capacity, reduce financial pressure on the exchequer, and accelerate project timelines at a time when India’s energy demand is rising sharply.

Old Laws Repealed, New Framework Introduced

One of the most significant aspects of the Act is the repeal of the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. These laws, framed in a different era, were widely seen as restrictive and a deterrent to private and foreign investment due to rigid control structures and liability provisions.

The SHANTI Act consolidates nuclear regulation into a modern legal framework that the government says aligns better with international norms while retaining sovereign oversight over critical aspects of the sector.

Strategic Areas Remain Under Government Control

Despite opening the door to private participation, the Act draws clear boundaries around sensitive activities. Strategic areas such as uranium and thorium mining, isotope separation, spent fuel reprocessing, radioactive waste management and heavy water production will continue to remain under government control.

Officials have emphasised that these safeguards ensure national security interests are protected even as commercial participation is expanded in power generation and allied activities.

Boost to Regulation and Advanced Technologies

The Act also gives statutory backing to the Atomic Energy Regulatory Board (AERB), strengthening India’s nuclear safety and oversight mechanism. This move is expected to enhance regulatory independence and transparency at a time when more players are set to enter the sector.

In addition, the new framework is designed to facilitate the deployment of advanced nuclear technologies, including Small Modular Reactors (SMRs), which are seen as safer, more flexible and easier to deploy compared to traditional large reactors.

Energy Security and Climate Goals

The SHANTI Act is closely linked to India’s long-term energy and climate objectives. While nuclear power currently contributes a relatively small share to the country’s electricity mix, the government views it as a critical component in achieving low-carbon growth and meeting net-zero commitments.

By encouraging private investment, the government hopes to significantly expand nuclear capacity over the coming decades, positioning it alongside renewables as a pillar of clean energy.

Support and Opposition

The legislation has been welcomed by industry stakeholders and policy experts, who say it could unlock investment, foster innovation and integrate India more closely with global nuclear supply chains. International partners, including the United States, have also indicated interest in deeper cooperation in civil nuclear technology and research.

However, the Act has faced opposition from some trade unions and political groups, who have raised concerns over safety, accountability and the risks of privatising a sensitive sector. The government has countered these criticisms by pointing to strengthened regulation and continued state control over critical functions.

A Landmark Shift

With the President’s assent, the SHANTI Act comes into force, marking a historic shift in India’s nuclear policy. By opening up the sector while retaining strategic oversight, the government has signalled its intent to modernise India’s nuclear ecosystem and make it a more central part of the country’s energy future.

How effectively the new law balances expansion with safety and public trust will be closely watched in the years ahead.

The MGMM Outlook

The President’s assent to the SHANTI Act marks a decisive turn in India’s energy and industrial policy, signalling a willingness to recalibrate long-held assumptions around nuclear power. By allowing regulated private participation in nuclear generation while keeping strategic assets firmly under state control, the law attempts to balance expansion with sovereignty. The repeal of legacy legislation such as the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 reflects an acknowledgment that India’s energy ambitions and global positioning demand a modern legal framework—one capable of attracting capital, technology and expertise without diluting national security priorities.

At a time when energy demand is rising and climate commitments are becoming non-negotiable, the SHANTI Act positions nuclear power as a serious pillar of India’s low-carbon future alongside renewables. Strengthening regulatory oversight through statutory backing to the Atomic Energy Regulatory Board and opening the door to advanced technologies like Small Modular Reactors underscores an intent to combine safety with scalability. While concerns around privatisation and accountability will continue to shape public debate, the Act represents a strategic effort to unlock capacity, reduce fiscal strain, and integrate India more deeply into global clean energy and nuclear innovation ecosystems.

(Sources: India Today, NDTV, The Hindu)