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The Union Cabinet has approved the Atomic Energy Bill, 2025, also called the SHANTI Bill (Sustainable Harnessing of Advancement of Nuclear Technology for India). It represents the biggest reform in India’s nuclear energy governance since the Atomic Energy Act of 1962.

Background of India’s Nuclear Sector

• India’s civilian nuclear power sector has traditionally been under complete government control. Nuclear power plants are operated only by public sector entities such as Nuclear Power Corporation of India Limited (NPCIL) and BharatiyaNabhikiya Vidyut Nigam Limited (BHAVINI).
• Private participation has remained restricted mainly due to the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 (CLND Act), which created legal and liability-related uncertainties for suppliers and investors.

Need for the SHANTI Bill

India has set a target of 100 GW of nuclear power capacity by 2047. Achieving this requires massive investment, advanced technology, and faster project execution. Existing laws were considered outdated, fragmented, and restrictive for modern nuclear expansion, especially with regard to private and foreign participation.

Scope and Nature of the Bill

The SHANTI Bill seeks to create a single, modern legal framework governing nuclear energy in India. It replaces the earlier fragmented legal structure with a unified system covering licensing, safety regulation, liability, and industry participation.

Opening of the Nuclear Value Chain

• The Bill allows private and foreign companies to participate in selected non-strategic areas of the nuclear sector. These include atomic mineral exploration, nuclear fuel fabrication, and the manufacturing of nuclear equipment and components.
• However, sensitive and strategic domains such as nuclear weapons-related activities and certain categories of reactor operations will continue to remain under strict government control.

Reform of the Nuclear Liability Regime

• A key feature of the Bill is the restructuring of the nuclear liability framework. The law aims to clearly define the responsibilities of plant operators, equipment suppliers, and the government in case of a nuclear incident.
• It proposes insurance-backed liability caps to reduce financial uncertainty for private players. Beyond a certain damage threshold, the government will step in to provide additional financial support. This brings India’s framework closer to global nuclear liability practices and addresses long-standing investor concerns under the CLND Act.

Independent Nuclear Safety Authority

• The Bill proposes the establishment of an independent nuclear safety authority. This body will be separate from agencies that promote nuclear energy, ensuring a clear distinction between promotional and regulatory roles. The aim is to enhance transparency, credibility, and adherence to international best practices in nuclear safety.

Dedicated Nuclear Tribunal

A specialised nuclear tribunal will be set up to handle disputes related to nuclear liability, contracts, and compensation. This is expected to ensure faster resolution of cases and reduce legal uncertainty in the sector.

Focus on Advanced Technologies and SMRs

The legislation supports research, development, and deployment of Small Modular Reactors (SMRs). SMRs are considered suitable for industrial decarbonisation, remote regions, and flexible grid integration, and are seen as a key part of the future nuclear expansion strategy.

Strategic Significance

Nuclear energy provides clean and reliable baseload power, which complements intermittent renewable sources like solar and wind. Expansion of nuclear power will help India reduce its dependence on coal and imported fossil fuels, thereby strengthening energy security.

The reform also supports India’s long-term climate commitments, including its net-zero emissions target by 2070, while breaking more than six decades of exclusive state monopoly in the sector.