Modi govt unveils SHANTI Bill: Will private players power India’s nuclear leap?

India has taken a decisive step towards reshaping its clean energy future, with the Union Cabinet on Friday approving the ambitious Atomic Energy Bill, 2025 – named SHANTI (Sustainably Harnessing Nuclear Energy Progress to Transform India). The move signals a historic shift in India’s atomic energy policy, which had long been state-dominated.

The Cabinet approval, headed by Prime Minister Narendra Modi, represents one of the most significant reforms in the sector since the start of India’s nuclear programme. Shanti’s bill lays the foundation for a unified, modern legal framework for nuclear energy – consolidating multiple existing laws, addressing regulatory gaps, and creating a structure that supports large-scale expansion.

Importantly, this legislation opens up India’s tightly controlled nuclear ecosystem to private sector participation, breaking the decades-old monopoly of the Department of Atomic Energy. This includes basic activities such as atomic mineral exploration, fuel manufacturing, equipment manufacturing, and perhaps even aspects of factory operations.

Why the bill matters

India has set an ambitious target of achieving 100 gigawatts of nuclear power capacity by 2047, nearly ten times current levels. Achieving this goal will require massive capital infusions, cutting-edge technology, and accelerated project timelines—conditions that policymakers believe cannot be achieved through government funding alone.

Shanti’s bill is designed to position nuclear power as a key pillar of India’s long-term decarbonization strategy, especially as the country seeks to reduce dependence on fossil fuels and stabilize its energy mix.

Rewriting the rules of responsibility

One of the most transformative — and closely scrutinized — areas of the draft legislation is nuclear liability, a long-standing sticking point for both domestic and global investors.

The current civil liability law for nuclear damage has been criticized because it places heavy and ambiguous liability burdens on suppliers, preventing private and foreign companies from entering the market.

In the new framework:

• Responsibility responsibilities are expected to be clearly defined.
• Insurance-based liability caps will be introduced.
• The government will provide support beyond a specified threshold.

This hybrid model is designed to balance investor confidence and public safety, and bring India closer to international best practices.

Institutional reform

The Shanti Bill proposes a range of structural reforms, including:

1. New independent nuclear safety body: Having a regulator that complies with global standards would enhance credibility, transparency and safety oversight.
2. Specialized nuclear court: This specialized body will deal with liability disputes and other disputes, with the aim of simplifying the resolution process and enhancing investor reassurance.

These reforms address long-standing industry requirements for predictability, professional oversight and regulatory independence.

From the margin to the nuclear value chain

By opening the door to private sector participation, India hopes to harness the capabilities of local and global companies in several sectors:

• Mining and exploration of atomic minerals
• Fuel cycle activities, including manufacturing
• Manufacture of reactors and equipment
• Potential participation in factory operations under government-supervised structures

While the state will retain strategic control over sensitive activities, the participation of industry players is expected to accelerate the pace of project delivery and innovation.

Shanti’s bill represents a watershed moment for India’s nuclear program, as it balances national security considerations with the need for rapid expansion of clean energy. If implemented effectively, it could unlock billions in investments, catalyze high-tech partnerships, and support India’s long-term climate and energy goals.