Blitz Bureau
NEW DELHI:India has redrawn the contours of its energy policy with the passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, ending a six-decade-old state monopoly over civilian nuclear power. Passed by Parliament on December 18, the legislation marks the most significant reform in the sector since the Atomic Energy Act of 1962 and signals a decisive shift towards private capital, global technology partnerships, and accelerated capacity creation.
At a time when India is balancing rapid economic growth with its commitment to achieve net-zero emissions by 2070, the Government has acknowledged a central constraint: public resources alone cannot finance the scale of clean, reliable energy required. Nuclear power — unlike solar and wind — offers round-the-clock, low-carbon baseload electricity, making it indispensable to India’s long-term energy mix.
Gap between ambition and capacity
India operates about 8 gw of nuclear power, contributing just over 3 per cent of total electricity generation. Official targets, however, envisage nuclear capacity rising to 100 gw by 2047. Meeting this goal would require investments estimated at around ₹15 lakh crore ($180–200 billion).
The Bill removes supplier liability and places it on plant operators while capping it at approximately ₹3,000 crore. This brings India into alignment with the Convention on Supplementary Compensation (CSC), a move long advocated by the Ministry of External Affairs and industry stakeholders.
Budgetary allocations have fallen far short of this requirement. The Union Budget for 2025–26 earmarked roughly ₹20,000 crore for the nuclear sector, underlining the urgency of tapping private and foreign capital. The SHANTI Bill directly addresses this gap by allowing Indian private companies and joint ventures to build, own, operate, and decommission nuclear power plants.
It also permits up to 49 per cent foreign direct investment, ensuring access to advanced reactor technology and global financing while retaining Indian majority control.
Removing roadblocks
For decades, India’s nuclear expansion was constrained by outdated legal frameworks. The Atomic Energy Act, 1962 barred private ownership, while the Civil Liability for Nuclear Damage Act, 2010 imposed a supplier liability clause that made international vendors wary of entering the Indian market.
The SHANTI Bill removes this anomaly by placing primary liability on plant operators and capping liability at approximately ₹3,000 crore. This brings India into alignment with the Convention on Supplementary Compensation (CSC), a move long advocated by the Ministry of External Affairs and industry stakeholders.
The change is widely seen as essential to unlocking stalled cooperation with global players from the United States, France, Russia, and Canada, more than a decade after the 2008 Indo-US civil nuclear agreement.
Safety, sovereignty, and regulation
The Government has sought to reassure critics that liberalisation will not dilute safety or national security. The Bill grants statutory status to the Atomic Energy Regulatory Board (AERB), making it an independent regulator accountable directly to Parliament. Strategic areas — uranium enrichment, spent fuel reprocessing, and heavy water production — remain under exclusive Government control, preserving India’s non-proliferation commitments and strategic autonomy.
Nuclear Energy Mission
Legislative reform is being reinforced by the newly launched Nuclear Energy Mission, which aims to execute capacity expansion in mission mode rather than through fragmented projects. A key focus is on Small Modular Reactors (SMRs) and indigenously designed “Bharat Small Reactors” (BSRs) of around 200–220 mwe.
These reactors offer lower upfront costs, shorter construction timelines, and improved scalability, making them attractive for private investment. The Mission envisages nuclear industrial parks, standardised reactor designs to reduce cost overruns, and a strong domestic manufacturing ecosystem for critical components.
Workforce development is another priority, with plans to train large numbers of engineers, technicians, and safety professionals over the next two decades.
Importantly, the Mission allows energy-intensive industries — such as steel, cement, chemicals, refineries, and data centres — to set up captive nuclear plants. This could significantly reduce industrial emissions and help Indian exporters remain competitive as carbon border taxes gain traction in global markets.
Industry response gathers pace
With regulatory barriers removed, several major Indian conglomerates are positioning themselves for entry. Larsen & Toubro is expanding beyond its traditional role as an engineering contractor.
Reliance Industries is evaluating SMRs to decarbonise its large manufacturing and new-energy facilities. Tata Power and Adani Power are examining grid-scale nuclear options, while JSW Energy is assessing captive reactors for steel production. Public-sector major BHEL is aligning itself as a manufacturing and technology partner within private-led consortia.
Industry estimates suggest that the first phase of SMR and BSR deployment could unlock $25–30 billion in private investment over the next decade.
Global alignment and trade impact
Internationally, India’s move brings it closer to established nuclear economies. The United States operates an almost entirely private nuclear sector, while the UK uses regulated asset-base models to attract private finance. Canada and Japan follow mixed utility models, and even France’s EDF functions as a commercial entity with global partnerships.
By adopting a similar framework, India aims not only to expand domestic capacity but also to integrate into global nuclear supply chains. Policy makers see export potential in standardised, cost-competitive SMRs for developing countries in Africa and Southeast Asia, positioning nuclear power alongside renewables as a future “Make in India” export.
Strategic recalibration
Over the long term, officials estimate that a 100 gw nuclear fleet could save India more than $10 billion annually in fossil fuel imports, stabilise power prices, and create millions of high-skill jobs across engineering, manufacturing, and digital safety systems.
Taken together, the SHANTI Bill and the Nuclear Energy Mission represent a strategic recalibration of India’s energy doctrine — recognising nuclear power not merely as a strategic asset, but as a central pillar of economic growth, climate resilience, and global competitiveness in the decades ahead.