Cabinet clears SHANTI Act to open nuclear power sector

The Union Cabinet has approved the Atomic Energy Bill, 2025, also known as the SHANTI Act, enabling private-sector participation in India’s nuclear energy sector for the first time.  

The bill, formally titled Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI), is scheduled to be tabled in Parliament this week. It marks the first major reform of nuclear sector laws since the Atomic Energy Act, 1962 and ends the long-standing monopoly of the Department of Atomic Energy (DAE). The proposed framework seeks to consolidate existing laws, address regulatory gaps, and create a unified structure to accelerate nuclear capacity addition.

The SHANTI Bill proposes opening core nuclear activities to private companies, including atomic mineral exploration, fuel fabrication, and equipment manufacturing. It also establishes an independent nuclear safety authority and amends the Civil Liability for Nuclear Damage Act to clarify liability provisions and enhance investor confidence.  

India currently operates 25 nuclear reactors with a combined installed capacity of 8,880 MW. Another 17 reactors are under construction. The national roadmap targets 22,000 MW of nuclear capacity by 2032, followed by a scale-up to 100 GW by 2047. This represents an almost eleven-fold increase over current levels and is intended to support baseload power needs, enable the net-zero emissions goal by 2070, and reduce dependence on fossil fuels.

The Nuclear Power Corporation of India Limited (NPCIL) is expected to deliver at least 50 per cent of the 100 GW capacity target. The remaining capacity is planned to come from private developers and potential foreign technology partnerships. While the reforms are expected to unlock investment and innovation, the sector continues to face challenges related to project complexity, fuel security, and regulatory capacity.

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