The Indian Parliament has introduced major reforms in nuclear energy policy by passing the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill (SHANTI BILL). The SHANTI Bill seeks to modernise India’s nuclear legal framework in line with the vision of Viksit Bharat by consolidating existing laws into a single, comprehensive statute. It marks a significant shift from exclusive government control by allowing limited private sector participation and foreign direct investment.
INTRODUCTION
The SHANTI bill was introduced on 15 December 2025 in Lok Sabha. On 18 December 2025 the Rajya Sabha approved the bill, completing its passage through both Houses of Parliament. The Bill became a law on 20 December 2025 after the honourable President Droupadi Murmu granted assent to the “SHANTI Bill”.
The SHANTI Bill consolidates and modernises India’s nuclear legal framework. It strengthens statutory regulation by granting statutory recognition to the Atomic Energy Regulatory Board (AERB). It supports India’s clean energy transition and the long term objective of achieving 100 GW
nuclear energy capacity by 2047.
This new SHANTI law aims to provide for the promotion and development of nuclear energy and ionising radiation for nuclear power generation, application in healthcare, food, water, agriculture, industry, research, environment, innovation in nuclear science and technology, for the welfare of the people of India, and for robust regulatory framework for its safe and secure utilisation.
India having achieved self-reliant capability in production and use of nuclear energy, recognises the potential it offers towards rapidly meeting the ever-increasing energy needs of the country through further research and development. It’s designed in a way that it will reduce its dependence on fossil fuel along with providing clean energy.
KEY ELEMENTS
1. The SHANTI bill consolidates the previous statutes the Atomic Energy Act, 1962 and The Civil Liability for Nuclear Damage Act, 2010, bringing them under a single comprehensive legal framework it intends to illuminate ambiguities and legal fragmentation.
2. Provides a regulatory framework for the use of nuclear and radiation technologies in health care, agriculture, industry, research and other peaceful applications.
3. The key highlight of the SHANTI bill is, Earlier the nuclear sector was under the state monopoly and Nuclear Power Corporation of India (NPCIL) controlled the operations of the plants, but now with this bill. It has opened up the possibility of joint ventures and privatization for limited private participation in the nuclear sector under regulatory oversight.
4. It strengthens statutory regulation by granting statutory recognition to the Atomic Energy Regulatory Board (AERB).
5. It introduces ‘Graded Liability Structure’ in contrast to existing laws that impose a single statute on operators’ liability.
PRIVATE SECTOR UNIFICATION
1. The SHANTI Bill permits private companies to participate in India’s nuclear sector, enabling them to undertake plant operations. The new law also allows up to 49% foreign direct investment (FDI) in certain nuclear sector activities, which is expected to help bring capital into the sector as well as speed up research and development and the adoption of new technologies.
2. Private firms will have to issue a licences to operate nuclear power plants by the nuclear regulatory authority, allowing firms to participate in fuel cycle activities, plant operations, power generation, equipment manufacturing, and selected activities such as the fabrication of nuclear fuel including conversion, refining and enrichment of uranium 235 up to such threshold value, or production, use, processing or disposal of other prescribed substance.
3. The private or foreign firms can operate these activities through joint ventures only, with the government entities like the NPCL and PSU, the government entities will retain the majority ownership or golden share. The government entities will also ensure regulatory compliance, safety protocol, international treaty obligations and strategic decision making.
ACTIVITIES EXCLUSIVELY UNDER CENTRAL GOVERNMENT PURVIEW
Under the SHANTI Bill, certain sensitive nuclear fuel cycle activities are reserved exclusively for the Central Government or its wholly owned institutions. These include enrichment or isotopic separation of prescribed or radioactive substances (unless otherwise notified), management of spent fuel such as reprocessing, recycling, radionuclide separation, and high-level waste handling, production and upgradation of heavy water, and any other facilities or activities specifically notified by the Government.
LICENCING
1. Licensing functions as a critical safety mechanism by determining who is authorised to engage in activities related to nuclear power plants. No entity is permitted to operate a nuclear facility unless a licence has been duly granted by the competent regulatory authority. In this regard, the Act establishes a structured framework for licensing and safety oversight, providing for the grant, suspension, modification, or cancellation of licences and safety authorisations for the production, use, and regulation of nuclear energy.
2. Any entity interested in setting up any facility or activity in the nuclear sector shall be eligible to apply for a licence from the central government as given in the section 3 of chapter 2 of this bill.
3. The bill has also specified the activities granted for licensing to private sector and public sectors. Further, any activity involving radiation exposure will require a safety authorisation from the Atomic Energy Regulatory Board. Certain activities are also exempted from licence activities like research, development, and innovation related work.
GRADED LIABILITY STRUCTURE
1.In contrast to existing laws that impose a single statutory cap on operator liability, the SHANTI Bill establishes a graded liability framework. Under this framework, the limits on operator liability are detailed in the Second Schedule of the bill and vary according to the type and characteristics of the nuclear installation.
2. The operator’s liability is subject to a maximum amount as mentioned in the second schedule and the central government bears any excess liability. Liability does not apply in specified cases such as a natural disaster.
CIVIL LIABILITY FRAMEWORK
1. Introduces a practical and balanced civil liability regime for addressing nuclear damage.
2. This framework is for a balanced regime that ensures prompt compensation for nuclear damage while limiting and clearly allocating liability to promote safe, insurable, and commercially viable nuclear operations.
THE NUCLEAR DAMAGE COMMISSION
1. Provides for a dedicated Commission to handle cases involving severe nuclear damage and ensure timely adjudication.
2. The Act also provides for appointment of a Commissioner or a Commission to adjudicate claims. This forum specialised and exclusive for adjudicating severe nuclear damage claims, ensuring timely and expert driven compensation to affected persons.
ATOMIC ENERGY REGULATORY BOARD
1. The bill commissions an independent statutory authority, Atomic Energy Regulatory Board (AERB) to strengthen regulatory independence, safety standards, oversight, and coordination, while ensuring protection of public health, environment, and national security.
2. This body has Comprehensive Safety Regulatory Powers, nuclear safety standards, radiation exposure limits, safety codes and regulations. Covers the entire life cycle of nuclear facilities from design and construction to operation and decommissioning.
3. This body also grants the licence for setting up any facilities or activities for nuclear power plants; it can regulate grant, suspension, modification, and cancellation of licences. Issues safety authorisations at various stages of nuclear activities. Can exempt low-risk activities from safety authorisation
SAFETY AND SAFEGUARD
1. The core element of this bill lies in the safety of creating a strong ecosystem for the development of nuclear power plants and harnessing the authority of regulation at the same time. The bill maintains sovereignty, but at the same time opens up to the private sector.
2. The central retains most of the power to operate this sector as a nuclear power plant is a hazardous element that may cause massive destruction.
3. The Government will have exclusive authority over the nuclear fuel cycle, waste management, and all security related operations.
4. The nuclear energy sector in the bill is structured in a way that does not compromise national security or India’s independent decision making.
CRITICISM OF THE BILL
1. Even though the SHANTI bill aims robust the regulatory framework for its safe and secure utilisation the engineer of the All India Power Engineers Federation(AIPEF) have opposed the bill along with the trade union pointing out the fact that this bill allows the private sector to have control over an asset that can that can pose serious risks to public safety, national security, and the environment if not managed exclusively under strict public ownership and accountability.
2. The SHANTI Act, 2025 looks less like a blueprint for energy security and more like a carefully designed instrument of risk transfer. They argue that a profit-oriented licensing model, this could lead to compromised safety standards, reduced oversight and greater commercial influence in areas where public welfare should be prioritised.
3. The All India Power Engineers Federation (AIPEF) have announced plans to hold a nationwide protest against the bill. Opposing allowing private and foreign participation in the civil nuclear sector, calling it a departure from decades of public sector control.
4. Contrary to the criticism, the government sees the SHANTI Bill as – “consolidates and modernises India’s nuclear legal framework and enables limited private participation in the nuclear sector under regulatory oversight. It also strengthens statutory regulation by granting statutory recognition to the Atomic Energy Regulatory Board (AERB) and supports India’s clean energy transition and the long-term objective of achieving 100 GW nuclear energy capacity by 2047.
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AUTHOR’S DETAILS: SHAILVI TRIPATHI 5TH YEAR LAW STUDENT AT AMITY UNIVERSITY, NOIDA.
References
- https://sansad.in/ls/legislation/bills
- https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/dec/doc20251222741701.pdf
- https://prsindia.org/billtrack/the-sustainable-harnessing-and-advancementof-nuclear-energy-for-transforming-india-bill-2025
- https://economictimes.indiatimes.com/news/india/shanti-bill-framework-on-liability-finally-aligns-india-with-csc-and-international-practice-dr-arun-kumar-nayak/articleshow/126141137.cms?from=mdr
- https://economictimes.indiatimes.com/news/politics-and-nation/why-private-entry-into-nuclear-power-is-an-imperative-not-a-choice-arun-kumar-nayak-on-the-shanti-bill/articleshow/126126787.cms?from=mdr