SYLLABUS

GS-3: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: Recently, the Union Cabinet approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill to enable private sector participation in India’s tightly regulated civil nuclear power sector. 

More on the News

• The SHANTI Bill, also known as the Atomic Energy Bill, 2025, is likely to be tabled ahead of Parliament's winter session's closes on December 19.

• In her Budget speech in February, the Finance Minister had also announced plans to open up the nuclear power sector for private sector participation.

• The Bill aims to repeal both, the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010 and open India's highly restricted nuclear power sector to private participation.

About SHANTI Bill

• The SHANTI Bill proposes opening areas such as atomic mineral exploration, fuel fabrication and equipment manufacturing to private and global companies. While sensitive and strategic operations will remain under government control.

• The Bill seeks to address long-standing investor concerns by:

• clearly defining liability responsibilities
• introducing insurance-backed liability caps
• ensuring government support beyond a fixed threshold

• The legislation proposes setting up an independent nuclear safety authority to bolster regulatory oversight.

• It also calls for a dedicated tribunal to handle nuclear-related disputes, intended to streamline resolution and enhance transparency in the sector.

• The SHANTI legislation ushers in a ‘pragmatic civil liability regime for nuclear damage’ and does away with the contentious supplier liability clause (Section 46 CLND Act)- which was a big deterrent for the likes of US companies from building nuclear power plants in India.

• It also opens the doors for private sector ‘operators’ into India’s highly restricted atomic energy sector allowing them to operate N power plants, import N fuel and process it as per Clause 3 of the Bill.

Significance of the Bill

• Break from decades of State exclusivity: Currently, India’s nuclear energy base remains modest, with 23 reactors run solely by the state-owned Nuclear Power Corporation of India Ltd (NPCIL), with an installed capacity of just 8.8 GW. However, it has set a target of achieving 22 GW capacity by 2032 and 100 GW by 2047. 

• Revamp of nuclear liability regime: There has been little movement on civil nuclear energy progression signed between India and the United States, largely because of an onerous civil liability clause that targeted suppliers, and is widely believed to have kept potential investors away. The changes are aimed at improving investor confidence while maintaining public safety safeguards.

• Push towards 100 GW by 2047: India aims to scale nuclear power capacity to 100 GW by 2047, a target that will require significant capital infusion, advanced technology and faster execution. With government funding alone insufficient, policymakers view private participation as essential to meeting long-term clean-energy goals.

• Energy Security: The SHANTI Bill is one of the most significant reforms in India’s nuclear programme, positioning atomic energy as a core pillar of the country’s energy transition and future energy security.