Govt tables SHANTI Bill to end nuclear monopoly, open sector to private players

The Indian government has tabled a landmark piece of legislation in the Lok Sabha aimed at dismantling the state’s monopoly on atomic energy, proposing to open the tightly regulated sector to private corporations for the first time in history.

Introduced by Minister of State for Science and Technology Jitendra Singh, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 seeks to repeal the decades-old Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010.

The move signals a radical shift in India’s energy policy. Cleared by the Union Cabinet last week, the Bill is designed to attract billions in investment by allowing private entities and joint ventures to build, own, and operate nuclear power plants, with a specific focus on deploying Small Modular Reactors (SMRs).

Ending the supplier liability deadlock Crucially, the SHANTI Bill overhauls India’s nuclear liability regime—a long-standing friction point for global investors. The draft legislation proposes removing the contentious “supplier liability” clause, which had previously held equipment manufacturers legally liable in the event of an accident.

This clause effectively froze foreign investment for over a decade, deterring giants like Westinghouse and GE from entering the market. The new framework introduces a “pragmatic civil liability structure” capped at 300 million Special Drawing Rights (approx. ₹3,000 crore) per incident, aligning India more closely with global norms.

Scope for private players Under the proposed law, the central government will be empowered to issue licenses to private companies for the full lifecycle of nuclear projects—from construction and operation to decommissioning.

Licensed operators would also be permitted to import nuclear fuel, manage fuel fabrication, and handle spent fuel storage, breaking the exclusive control of the Nuclear Power Corporation of India (NPCIL). The Bill also outlines applications beyond power generation, including healthcare (radiology), agriculture, and water desalination.

Govt backs nuclear for data centers Commerce Minister Piyush Goyal publicly backed the legislation over the weekend, framing it as essential for India’s industrial future. “Nuclear power is critical for ensuring uninterrupted electricity supply, particularly for energy-intensive sectors like data centers, while complementing our renewable capacity,” Goyal stated.

To resolve legal disputes swiftly, the Bill proposes establishing a specialized tribunal for nuclear matters, removing jurisdiction from standard civil courts to ensure regulatory certainty for investors.

Summary

The government has introduced the SHANTI Bill in Parliament, proposing to end the state monopoly on nuclear energy. The Bill allows private companies to build and operate nuclear plants, promotes Small Modular Reactors (SMRs), and removes the controversial “supplier liability” clause that stalled foreign investment. The move aims to accelerate clean energy capacity to power India’s industrial growth.

FAQs

Q1: What is the SHANTI Bill? 

It is a proposed law (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) that repeals the Atomic Energy Act of 1962. Its main goal is to open India’s nuclear power sector to private investment and technology.

Q2: Why is the liability change important? 

The previous 2010 law held equipment suppliers liable for accidents, which scared away foreign tech providers (like US and French firms). The SHANTI Bill removes this clause and caps liability at approx. ₹3,000 crore, making the market investable for global companies.

Q3: Can private companies build nuclear plants now? 

If the Bill passes, yes. The government can license private firms or public-private partnerships (PPPs) to build, own, and operate reactors. Previously, only government-owned entities like NPCIL could do this.

Q4: What are Small Modular Reactors (SMRs)? 

SMRs are smaller, factory-built nuclear reactors that are cheaper and faster to deploy than traditional massive power plants. The Bill specifically encourages SMRs to provide round-the-clock power for industries like steel, cement, and data centers.

Q5: Does this affect safety regulations? 

The Bill proposes a comprehensive regulatory framework for safety across all uses of nuclear energy (power, medical, agricultural). It mandates that operators must have insurance coverage for potential liabilities, although central government plants are exempt.