SHANTI Bill, 2025: Key Features, Objectives & Challenges

The Centre introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill in the Lok Sabha to overhaul India’s nuclear energy framework.

It seeks to incentivise private sector participation in the nuclear power sector to reach 100 GW capacity by 2047 and Net Zero by 2070.

Key Features of the SHANTI Bill

Legal Overhaul: Replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010, with a unified SHANTI Act.
Regulatory Status: Grants statutory status to the Atomic Energy Regulatory Board (AERB), making it accountable to Parliament.
Appellate Body: Designates the Appellate Tribunal for Electricity (APTEL) to hear nuclear disputes.
Claims Commission: Establishes a Nuclear Damage Claims Commission to adjudicate compensation for severe damage.

Monopoly: Ends the Nuclear Power Corporation of India Limited (NPCIL) monopoly over nuclear power plant operations.
Private Operations: Permits Indian private companies to build, own, and operate nuclear power plants, subject to license.
FDI Cap: Restricts Foreign Direct Investment (FDI) in nuclear power projects at 49%.

Tiered Liability: Links operator liability to plant size, ranging from ₹100 crore (<150 MW) to ₹3,000 crore (>3.6 GW).
Supplier Immunity: Exempts suppliers from liability by removing provisions allowing operators to sue suppliers for equipment failures.
Penalty Limit: Limits the maximum financial penalty for violations of the act to ₹1 crore.
Liability Fund: Creates a central fund to cover damages exceeding the operator’s capped liability.

Patent Reform: Amends Section 4 of the Patents Act, 1970, to allow patenting of peaceful nuclear energy inventions.
Bharat SMRs: Institutionalises the ₹20,000 crore ‘Nuclear Energy Mission’ to deploy indigenous 220 MW Small Modular Reactors (SMRs).
Strategic Control: Retains full government control over uranium enrichment, spent fuel reprocessing, and heavy water production.

Mobilise ₹15-20 lakh crore private capital to scale nuclear capacity to 100 GW by 2047.
Deploy Small Modular Reactors to replace coal use and help industries bypass carbon taxes.
Facilitate advanced nuclear technology transfers by resolving critical liability barriers.
Secure nuclear energy as clean baseload power to stabilise the grid against renewable fluctuations.
Position nuclear energy as the third pillar, alongside solar and wind, to achieve Net Zero by 2070.

India operates 25 nuclear reactors at seven power stations with 8,880 MW installed capacity.
Nuclear energy accounted for 3% of India’s total electricity generation in FY 2024-25.
India targets nuclear capacity of 22.5 GW by 2031-32 and 100 GW by 2047.
Kazakhstan supplies 80% of India’s uranium imports, followed by Russia, Uzbekistan & Canada.
The Atomic Energy Act, 1962, restricts nuclear power generation to the central government and PSUs.
The Atomic Energy Regulatory Board oversees nuclear safety, licensing, and regulatory compliance.

High Capital Intensity: Nuclear power projects have long gestation periods and high upfront costs. Mobilising ₹15–20 lakh crore in private capital is a massive target, especially when renewable alternatives (solar/wind) are cheaper and faster to deploy.
FDI Limitations: While the bill invites private participation, the 49% cap on Foreign Direct Investment (FDI) may deter global nuclear giants (like Westinghouse or EDF) who often seek controlling stakes to manage proprietary technology and operational risks.
Regulatory Capacity: Shifting from a government monopoly (NPCIL) to multiple private operators will exponentially increase the burden on the Atomic Energy Regulatory Board (AERB).
Fuel Cycle Dependency: Private players can build and operate reactors, but the government retains control over uranium enrichment and spent fuel reprocessing.
SMR Technological Maturity: While Small Modular Reactors (SMRs) are a key focus, commercially proven SMR technology at scale is still globally nascent.

Green Taxonomy Inclusion: Officially classify nuclear energy as “green finance” to allow access to lower-cost capital, green bonds, and international climate funds.
Strict Safety Audits: Implement a “safety-first” licensing regime where private licenses are subject to periodic, stringent reviews rather than one-time approvals.
Public-Private Partnerships (PPP): Rather than full privatisation immediately, starting with PPP models (e.g., NPCIL forming JVs with private steel or power companies) could smooth the transition.
Liability Fund Management: Ensure the central Liability Fund is capitalised adequately and transparently to handle potential claims exceeding the operator’s cap, maintaining public trust.