SHANTI Bill 2025: India Opens Nuclear Sector to Private Companies, Ending State Monopoly

The legislation proposes a more “pragmatic” liability framework that drops the controversial supplier liability clause that has long deterred foreign participation and instead focuses on operator liability with defined financial security requirements. File Photo.

On Monday, the Union government introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025. It is popularly known as the SHANTI Bill in the Lok Sabha as part of the ongoing Parliament Winter Session. According to government sources, Minister of State for Science & Technology Jitendra Singh presented this bill with a mandate to reshape India’s nuclear energy landscape, ending a decades-long state monopoly and enabling private sector participation.

The SHANTI Bill focuses on repealing two foundational laws, the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, that have until now kept nuclear power generation and allied activities exclusively within the government domain. Officials said the move opens the door for private companies and joint ventures to enter India’s highly restricted nuclear power sector for the first time.

Under the proposed legislation, any eligible government or private company, including joint ventures, can apply for a licence from the Centre to build, own, operate or decommission nuclear power plants and reactors. It allows private entities to engage in nuclear fuel fabrication, including conversion, refining and enrichment of uranium-235 up to specified thresholds, as well as transportation, storage, import or export of nuclear fuel and related equipment or technology, according to government officials.

According to officials, a key feature of the SHANTI Bill is its overhaul of the civil liability regime for nuclear damage. The legislation proposes a more “pragmatic” liability framework that drops the controversial supplier liability clause that has long deterred foreign participation and instead focuses on operator liability with defined financial security requirements.

The bill seeks to strengthen regulatory oversight. It envisages statutory status for the Atomic Energy Regulatory Board and the creation of dispute resolution mechanisms, including specialised tribunals outside traditional civil courts, aiming to ensure safety, accountability and investor confidence, government sources said.

Prominent leaders, including Commerce Minister Piyush Goyal, welcomed the legislation. Goyal said the SHANTI Bill will help position nuclear energy as a reliable, base-load power source to support India’s growing energy needs and the transition to round-the-clock clean electricity.

Officials said that the introduction of the SHANTI Bill marks a watershed moment in India’s energy policy, signalling a shift towards a more competitive, private-inclusive nuclear power ecosystem that aligns with the nation’s long-term clean energy and energy security goals.

Source: The Economic Times