India has taken a historic leap in its energy policy, passing the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, which opens the country’s civil nuclear sector to private and foreign investment for the first time since independence. On December 18, 2025, the Lok Sabha passed the bill, and a day later, the Rajya Sabha approved it by voice vote, defeating opposition demands to refer the legislation to a standing committee. Once the President gives assent, the bill will become law, ushering in a new era for India’s energy landscape.
Prime Minister Narendra Modi hailed the bill as a "transformational moment for our technology landscape," linking it to India’s ambitions for clean energy, global leadership in artificial intelligence, and green manufacturing. In a post on X, Modi expressed gratitude to MPs for supporting the bill’s passage. He said, "From safely powering AI to enabling green manufacturing, it delivers a decisive boost to a clean-energy future for the country and the world. It also opens numerous opportunities for the private sector and our youth. This is the ideal time to invest, innovate and build in India!"
The SHANTI Bill is designed to supercharge India’s clean energy transition, aiming to scale the country’s nuclear capacity from the current 8.9 GW to an ambitious 100 GW by 2047. Achieving this target will require investments of Rs 19.3 trillion (approximately $214 billion), according to Bloomberg. Jitendra Singh, Minister of State for Atomic Energy, defended the bill in Parliament, stating, "This (nuclear energy) will be the most reliable, steady 24x7 source of energy, unlike some other renewable sources." With India’s power demand surging due to industrial growth, data centers, and urban expansion, the bill seeks to ensure a firm, carbon-free power source, in contrast to the intermittent nature of solar and wind energy.
So, what exactly does the SHANTI Bill change? The law overhauls the entire nuclear governance architecture, combining safety, licensing, regulation, liability, and dispute resolution into a single statute. For the first time, Indian private firms are permitted to construct, possess, and manage civil nuclear facilities, and foreign entities can participate through partnerships or joint ventures. The bill repeals the outdated Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage (CLND) Act of 2010, creating a modernized regulatory structure.
One of the most significant changes is the redefinition of liability. Operators’ liability is now capped—Rs 3,000 crore for large reactors—and the government can establish a Nuclear Liability Fund to cover claims that exceed this limit. Suppliers are generally protected from liability unless specifically stated in their contracts. The Atomic Energy Regulatory Board (AERB) has been granted statutory independence, with the authority to inspect, halt, or shut down operations if safety is compromised.
The bill introduces a dual authorization system, requiring nuclear plants to have both an operating license and a safety authorization for every activity, from construction to waste management. Jitendra Singh emphasized in Parliament, "The standard operating procedure explicitly states: 'safety first, then production.'" He further noted that India’s safety protocols remain grounded in the Nehru-era approach, with stringent standards and international oversight.
Singh also highlighted in the Lok Sabha that safety is the cornerstone of India’s nuclear energy policy, reiterating the government’s commitment to the principle of "safety first, production next." He pointed out that India’s nuclear power plants operate under strict safety protocols and are subject to international oversight. Radiation levels at Indian nuclear facilities are consistently well below global benchmarks. For example, emissions at the Kudankulam plant have plummeted from 0.081 microsieverts a decade ago to just 0.002 microsieverts in 2025. The Kalpakkam plant has also seen a significant reduction in emissions. Additionally, India’s nuclear plants are strategically designed to withstand natural disasters such as tsunamis and floods. Facilities on the eastern coast are more than 1,300 km from tsunami-prone zones in Indonesia, while those on the western coast, like the Tarapur plant, are over 900 km from tsunami risk zones in Pakistan.
The SHANTI Bill isn’t just about energy; it has major geopolitical and economic implications. India’s 2010 liability law had deterred global suppliers, causing companies like GE, Westinghouse, and EDF to shelve projects worth billions. By removing statutory risks and aligning with global conventions such as the Convention on Supplementary Compensation, India signals its readiness to revive stalled projects and attract foreign investment. The bill supports the deployment of Small Modular Reactors (SMRs)—compact, factory-assembled reactors under 300 MW—enabling industrial hubs and remote areas to generate their own clean power. According to Bloomberg, Indian conglomerate L&T is already exploring SMR technology.
Opposition parties, however, have raised sharp concerns. MPs questioned the wisdom of opening the nuclear sector to private and foreign players, warning of threats to national sovereignty, public safety, and accountability. Manoj Kumar Jha of the Rashtriya Janata Dal cautioned, "We are seeing profits being privatized, and risks being socialized," referring to taxpayer-backed safety nets for private companies. IUML’s Haris Beeran argued, "The bill dismantles the liability framework established after the Bhopal gas tragedy. Posterity will judge us very badly." Congress’ Jairam Ramesh accused the government of rewriting history and ignoring earlier contributions, while Trinamool Congress MP Sagarika Ghose called the bill "fundamentally dangerous," warning that it places a sensitive sector "at the mercy of crony capitalism and government-friendly oligarchs as well as foreign pressure." DMK MP P Wilson described the bill as a "nuclear bomb which threatens the country’s peace and security," and AAP MP Sandeep Pathak questioned the government’s ideological consistency regarding foreign involvement in the nuclear sector.
Critics also argue that the SHANTI Bill weakens accountability standards, capping operator compensation and limiting victims’ legal recourse. G Sundarrajan, an anti-nuclear activist, told the Associated Press that the bill "takes away essential safeguards," making it "nearly impossible" for radiation victims to seek legal redress. "This also provides little recourse for any Indian citizen to claim damages from nuclear companies," he said.
Union Minister Singh responded to these concerns by stating, "Wide consultations were held... with industry leaders, scientific experts, startups, and ministries. We took more than a year, and the bill was framed with safety and global benchmarks in mind." He also noted that India’s nuclear energy budget has nearly tripled since 2014, rising from Rs 13,879 crore to Rs 37,483 crore in 2025, and that the government has approved the establishment of 10 new reactors since 2017.
Globally, nuclear power is experiencing a renaissance, with countries like China, South Korea, Japan, the US, and EU investing in new reactors and SMRs to meet climate goals. India’s plan to achieve 100 GW of nuclear capacity by 2047, energy independence by 2047, and net-zero emissions by 2070 positions it as a key player in the clean energy transition.
The SHANTI Bill represents a bold bet on nuclear power as a cornerstone of India’s energy future. As the country navigates the complexities of investment, safety, and public trust, the world will be watching to see how quickly India can turn legislative ambition into a safe, reliable, and sustainable energy reality.
