In a significant policy shift, the Union Cabinet on Thursday cleared the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, marking the first major reform in India’s nuclear governance framework in decades. The meeting, chaired by Prime Minister Narendra Modi, also approved the proposal for conducting the 2027 Census, according to multiple reports.
A Structural Shift in India’s Nuclear Landscape
The SHANTI Bill aims to overhaul India’s tightly controlled nuclear ecosystem by allowing private sector participation in activities that were previously monopolised by the Department of Atomic Energy (DAE). These include atomic mineral exploration, fuel fabrication, equipment manufacturing and, potentially, segments of nuclear plant operations.
If enacted, this would be a historic break from India’s long-standing model of complete state control over nuclear energy.
Why the Reform Is Needed
India has set an ambitious target of achieving 100 GW of nuclear power capacity by 2047, nearly ten times its current capacity. Meeting this goal requires massive capital infusion, faster project execution and access to advanced technologies—factors the government believes cannot be achieved through public sector efforts alone.
Opening the sector to private players is expected to:
- Accelerate capacity addition
- Bring in global best practices
- Reduce project delays
- Lower dependence on fossil fuels as India pushes toward long-term decarbonisation
Central to India’s Clean Energy Roadmap
The Bill positions nuclear power as a critical pillar of India’s strategy to achieve a stable, low-carbon energy mix. Nuclear energy, with its high reliability and zero emissions, is seen as essential to balancing the intermittency of solar and wind alternatives.
Reforming Nuclear Liability Norms
One of the most closely watched aspects of the SHANTI Bill is its proposed overhaul of India’s nuclear liability framework. The current Civil Liability for Nuclear Damage Act has long been criticised for vague and heavy liability requirements, discouraging both private firms and foreign technology suppliers.
Under the new mechanism being considered:
- Liability responsibilities will be clearly defined
- Insurance-backed liability caps will be introduced
- The government will offer backstop support beyond a pre-specified limit
This hybrid liability model is intended to provide investor confidence while maintaining strong safety and accountability standards, aligning India more closely with global nuclear norms.