India’s Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 has now been approved by both houses of parliament and has been granted the assent of President Droupadi Murmu. The bill will take effect when it is notified in the official gazette with the enforcement date.
According to a Government of India explanatory note, the key takeaways of the bill are:
- The Bill consolidates and modernises India’s nuclear legal framework.
- It enables limited private participation in the nuclear sector under regulatory oversight.
- It strengthens statutory regulation by granting statutory recognition to the Atomic Energy Regulatory Board (AERB).
- It supports India’s clean-energy transition and the long-term objective of achieving 100 GW nuclear energy capacity by 2047.
The defining elements of the legislation are:
Private Sector Integration: The Bill permits private companies to participate in India’s nuclear sector, enabling them to undertake plant operations, power generation, equipment manufacturing, and selected activities such as the fabrication of nuclear fuel including conversion, refining and enrichment of uranium-235 up to such threshold value, or production, use, processing or disposal of other prescribed substances. In addition, all activities that involve radiation exposure must obtain prior safety authorisation from the regulatory authority.
Activities Under Exclusive Central Government Purview: Under the Bill, certain sensitive nuclear fuel‑cycle activities are reserved exclusively for the Central Government or its wholly owned institutions. These include enrichment or isotopic separation of prescribed or radioactive substances (unless otherwise notified), management of spent fuel such as reprocessing, recycling, radionuclide separation, and high-level waste handling, production and upgradation of heavy water, and any other facilities or activities specifically notified by the Government.
Licensing and Safety Oversight: The Bill establishes a structured system for granting, suspending, or cancelling licences and safety authorisations for nuclear energy production and use.
Graded Liability Structure: In contrast to existing laws that impose a single statutory cap on operator liability, the SHANTI Bill establishes a graded liability framework. Under this framework, the limits on operator liability are detailed in the Second Schedule of the bill and vary according to the type and characteristics of the nuclear installation.
Regulation of Non-Power Applications: provides a regulatory framework for the use of nuclear and radiation technologies in health care, agriculture, industry, research, and other peaceful applications.
Exemption for Certain Activities: allows exemption from a licence for limited activities like research, development, and innovation-related work.
Civil Liability Framework: introduces a practical and balanced civil liability regime for addressing nuclear damage.
Statutory Body: grants formal statutory recognition to the Atomic Energy Regulatory Board (AERB) to strengthen regulatory independence and authority.
Enhanced Safety, Security, and Safeguards: improves systems for security, safeguards, quality assurance, and coordinated emergency preparedness and response.
Central Government Acquisition Rights: vests exclusive acquisition rights with the Central Government in specific cases related to nuclear activities.
Dispute Redressal Mechanism: establishes an Atomic Energy Redressal Advisory Council to facilitate the redressal of disputes.
Appellate Tribunal Provision: The Appellate Tribunal for Electricity, set up under the Electricity Act, 2003, will serve as the appellate authority, empowered to hear appeals under provisions of the bill and any additional matters as notified by the Central Government.
Claims Commissioner Appointment: empowers the Central Government to appoint Claims Commissioners for adjudicating compensation claims related to nuclear damage.
Nuclear Damage Claims Commission: provides for a dedicated Commission to handle cases involving severe nuclear damage and ensure timely adjudication.
Safeguards and Strategic Oversight: Even as the sector opens up to private participation, the Bill ensures that critical functions remain firmly under sovereign oversight. The Government retains exclusive authority over the nuclear fuel cycle, waste management, and all security-related operations.
Regulatory Strengthening: The reforms reinforce safety standards and enhance India’s nuclear governance framework for future expansion.
Protection of Strategic Autonomy: The nuclear energy sector in the Bill is structured in a way that does not compromise national security or India’s independent decision-making.
Coordinated Oversight Mechanisms: Enhanced safeguards and monitoring systems ensure consistent compliance across all nuclear activities.
Conclusion
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, stands as a pivotal step in shaping the next phase of India’s nuclear journey. By modernising the legal framework and strengthening institutional oversight, it creates the foundation for a more efficient, innovative, and secure nuclear ecosystem. The Bill supports India’s long-term vision of expanding clean, reliable energy while ensuring that strategic interests remain fully protected. As the country moves toward greater energy independence and technological advancement, this legislation can play a defining role in driving the growth of India’s nuclear power and broader energy landscape.
