Blitz Bureau
NEW DELHI:India’s passage of the SHANTI Bill, 2025 marks a decisive moment in the country’s economic and energy journey. By opening the nuclear power sector to private participation while retaining sovereign control over strategic assets, the Government has signalled a clear intent: energy security and economic resilience can no longer be postponed, nor can they rely solely on the public exchequer.
For decades, nuclear power in India remained confined to a narrow institutional framework. While this ensured strategic control and safety, it also limited scale, speed, and capital availability. The result is evident in the numbers. Despite early ambitions, nuclear power today contributes barely 3 per cent to India’s electricity generation.
At the same time, the country’s energy demand continues to rise, driven by industrial expansion, urbanisation, and digital infrastructure. The SHANTI Bill recognises that the old model has reached its limits.
The economic case for reform is compelling. India’s target of 100 GW of nuclear capacity by 2047 requires investments of nearly ₹15 lakh crore — an amount that cannot be met through budgetary support alone. By inviting private capital and permitting up to 49 per cent foreign investment, the Government is unlocking long-term financing while reducing pressure on public resources.
This is fiscal prudence, not privatisation for its own sake. Public funds can now be redirected towards social infrastructure, while private investors take on commercially viable generation projects under strict regulation.
Equally important is the reform of India’s nuclear liability framework. The earlier supplier liability regime, though well-intentioned, isolated India from global nuclear markets and stalled technology inflows. Aligning with international conventions restores credibility and opens doors to advanced reactor technologies.
The earlier supplier liability regime, though well-intentioned, isolated India from global nuclear markets and stalled technology inflows. Aligning with international conventions restores credibility and opens doors to advanced reactor technologies.
In a sector where safety and precision matter as much as capital, access to global expertise strengthens, rather than weakens, India’s nuclear programme.
From an economic standpoint, nuclear power offers advantages few alternatives can match. It provides clean, stable baseload electricity — something intermittent renewables cannot guarantee without costly storage.
For energy-intensive sectors such as steel, cement, chemicals, and data centres, reliable power is not optional; it is foundational. The Government’s parallel Nuclear Energy Mission, with its emphasis on Small Modular Reactors and captive nuclear plants for industry, directly addresses this requirement.
By lowering energy costs and reducing carbon exposure, nuclear power enhances India’s competitiveness in global trade, particularly as carbon border taxes become a reality.
The employment and industrial impact should not be underestimated. A large-scale nuclear expansion will generate high-skilled jobs across engineering, advanced manufacturing, safety systems, and digital monitoring.
It will also deepen domestic supply chains, from heavy forgings to precision components, strengthening India’s manufacturing base. In time, India could emerge not just as a nuclear power producer, but as an exporter of affordable, standardised reactor technologies to the developing world.
Critically, the reforms do not dilute oversight. By granting statutory independence to the nuclear regulator and retaining Government control over sensitive areas, the state has preserved both safety and sovereignty. This balance between openness and control is the Bill’s defining strength.
The SHANTI Bill is, ultimately, an economic reform disguised as an energy law. It recognises that a modern, growing economy requires dependable power, financial realism, and global integration. By recalibrating nuclear policy to meet these needs, the Government has taken a long-term view — one that strengthens India’s economy today while securing its energy future for generations to come.