The Indian Government has approved a Bill that seeks to open up the civil nuclear power sector for private participation. At a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet approved the Sustainable Harnessing & Advancement of Nuclear Energy for Transforming India (SHANTI) Bill.
In her Budget speech in February, Finance Minister Nirmala Sitharaman had announced plans of opening up the nuclear power sector for private sector participation. The legislation breaks decades of state control over the sector, creating a unified legal framework allowing private and global companies to participate in key areas of the nuclear value chain.
More broadly, the SHANTI Bill lays the foundation for a unified and modern legal framework for nuclear energy by consolidating multiple existing laws, addressing regulatory gaps, and creating a structure that supports expansion at scale. It proposes opening areas such as mineral exploration, fuel fabrication and equipment manufacturing to private and global companies. Although sensitive and strategic operations will remain under government control, officials say wider participation will accelerate expansion, innovation and technology access.
A central feature of the Bill is a redesigned nuclear liability framework, which seeks to address long-standing investor concerns by:
- clearly defining liability responsibilities;
- introducing insurance-backed liability caps; and
- ensuring government support beyond a fixed threshold.
The existing Civil Liability for Nuclear Damage Act has been criticised for placing heavy and ambiguous liability burdens on suppliers, deterring private and foreign companies from entering the market. This model is designed to strike a balance between investor confidence and public safety, aligning India more closely with international best practices.
The legislation also proposes setting up a new independent nuclear safety authority to bolster regulatory oversight in line with international standards. It also calls for a dedicated tribunal to handle nuclear-related disputes, intended to streamline resolution and enhance transparency in the sector.
India aims to scale nuclear power capacity to 100 GW by 2047, a target that will require significant capital investment, advanced technology and faster execution, which policymakers believe cannot be fulfilled by government funding alone. The government views private participation as essential to meeting its long-term clean-energy goals.
While the state will retain strategic control over sensitive activities, the participation of industry players is expected to accelerate project delivery and innovation.
The SHANTI Bill is seen as key to the development of India’s nuclear programme, balancing national security considerations with the need for rapid clean-energy expansion. If implemented effectively, it could attract billions in investments, catalyse advanced technology partnerships, and support India’s long-term climate and energy goals.
In late November, Modi promised opportunities for private firms in the nuclear sector. The move, he said, would create opportunities in small modular reactors (SMRs), advanced reactors, and nuclear innovation. “This reform will give new strength to our energy security and technological leadership.
