The SHANTI Act Opens Indian Nuclear Power to Private Capital. The Hard Part Starts Now
India's nuclear legal framework changed in a single week this month. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, known as SHANTI, was tabled in the Lok Sabha on 15 December, passed there on 17 December, passed by the Rajya Sabha on 18 December, and received presidential assent on 20 December. The Act repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, gives statutory recognition to the Atomic Energy Regulatory Board, permits private companies to take part in plant operation, power generation, equipment manufacture and selected fuel cycle activities, and replaces the single statutory cap on operator liability with a graded framework.
According to World Nuclear News, the Act enables limited private participation under regulatory oversight. Private firms may operate plants and generate power, manufacture equipment, and undertake selected fuel activities including conversion, refining and enrichment of uranium-235 up to a threshold the government will set. Under the 2010 law, operators had a statutory right of recourse against suppliers in the event of an accident caused by defective equipment or services. World Nuclear Association data cited by World Nuclear News show 24 operable reactors in India with total capacity of 7,943 MW, six reactors totalling 4,768 MW under construction, and ten more units of about 7 GW in pre-project stages.
The government has set out a Nuclear Energy Mission aiming at 100 GWe by 2047 with large reactors and small modular reactors. NPCIL's request for proposals inviting Indian industry to finance and build a fleet of 220 MW Bharat Small Reactors has been extended to 31 March 2026, according to World Nuclear News. Going from about 8 GW to 100 GW in 22 years implies adding more than 4 GW a year on average, far above anything India has managed.
The emphasis on Bharat Small Reactors, based on India's indigenous pressurised heavy water reactor design, reflects a pragmatic choice. The SHANTI Act is the most important reform of India's nuclear sector since the 2008 civil nuclear agreement.