Sustainable Harnessing and Advancement of Nuclear energy for Transforming India (SHANTI) Bill, 2025

Why in news?

The Minister of State for Science and Technology introduced the SHANTI Bill, 2025, in Parliament, marking a major step towards updating India’s legal framework governing nuclear energy.

• Aim – To open India’s nuclear sector to private players, streamlining laws, and positioning nuclear energy as a cornerstone of clean, reliable power for industrial growth.
• Replacing laws — It replaces outdated laws, such as the Atomic Energy Act of 1954 and the Civil Liability for Nuclear Damage (CLND) Act of 2010.

Key Provisions of the bill

• Private Sector Participation – For the 1^st time, private companies will be allowed to invest up to 49% in nuclear projects.
• They can also participate in core activities such as exploration of atomic minerals, fuel fabrication, equipment manufacturing, and potentially even aspects of plant operations.
• Unified Legal & Regulatory Framework - It consolidates multiple existing laws into a single legislative regime, simplifying licensing, compliance, safety, and operational rules to enhance clarity and investor confidence.
• It grants statutory status to the Atomic Energy Regulatory Board (AERB).
• Market Reform – It ends Nuclear Power Corporation of India Limited (NPCIL)’s monopoly over nuclear plant operations by opening the sector to private and foreign players.
• Liability Reforms – The amendments to the Civil Liability for Nuclear Damage (CLND) Act will clarify operator and supplier responsibilities.
• It introduced insurance-backed caps and provided government backstops-critical to attracting private and foreign investment.
• Penalty cap – It shields operators by capping their liability according to the size of the plants they run, and sets a maximum penalty of Rs 1 crore, even in cases of a “serious violation.”
• Removal of Supplier liability – It restricts the instances under which nuclear plant operators are allowed to seek compensation from equipment suppliers in case of an accident.
• Compensation framework – It penalises operators in case of a nuclear accident, requiring them to compensate on the basis of the plant size, not actual damage.
  • Installation above 3,600 MW - Operators pay up to Rs. 3,000 crore;
  • Between 1,500 MW and 3.600 MW up to Rs 1,500 crore; and
  • Lower down (150 MW) to Rs 100 crore.
• Safety & Preparedness – It strengthens mechanisms for safety, security, safeguards, quality assurance, and emergency preparedness.
• Operator’s right to claim from suppliers (recourse) – Allowed only if -
  • There is an explicit agreement with the supplier.
  • The accident is proven to have been caused by the supplier or faulty equipment.
  • The accident was due to deliberate intent to cause nuclear damage.
• India’s Target – India has set an ambitious target of 100 gigawatts (GW) of nuclear power capacity by 2047, nearly 11 times increase from current levels.
• Current status (2025) – India operates 25 reactors with a combined installed capacity of 8,880 megawatts, and 17 more reactors are under various stages of construction.

India is already a nuclear weapons state having acquired atomic bombs in 1998.

References

1. The Hindu | SHANTI Bill spurs private sector to make, run nuclear plants
2. NDTV | SHANTI Bill, 2025, was tabled in Parliament