New Delhi: The Narendra Modi-led government is set to table the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 in Parliament during the last week of the Winter Session. The proposed legislation marks a historic shift in India’s civil nuclear policy, opening the sector to private participation for the first time in decades. The move aligns with the government’s ambitious goal of achieving 100 GW of nuclear power capacity by 2047.
Cabinet Approval and Policy Objective
The Union Cabinet approved the SHANTI Bill on December 12, 2025, providing a legal framework for private companies and joint ventures to build, own, operate, or decommission nuclear power plants and reactors. The legislation is part of India’s broader strategy to leverage private sector investment, enhance technological innovation, and integrate domestic companies into the global nuclear energy ecosystem.
Finance Minister Nirmala Sitharaman had earlier highlighted these plans in the 2025-26 Budget, announcing the Nuclear Energy Mission, with an outlay of Rs 20,000 crore for research and development of small modular reactors (SMRs), aiming to operationalize five indigenously developed SMRs by 2033.
Private Participation and Liability Framework
Under the SHANTI Bill, private operators will be liable for damages from nuclear incidents, except in cases of grave natural disasters, armed conflict, civil war, insurrection, or terrorism.
The legislation also limits liability, specifying that damages to under-construction nuclear installations, other nuclear facilities on the same site, or transport vehicles carrying nuclear material are excluded. The maximum liability per nuclear incident is capped at the rupee equivalent of 300 million Special Drawing Rights (SDRs), with flexibility for the Central Government to revise this amount through notifications.
Government Control Over Sensitive Activities
While private participation is permitted in several areas of the nuclear value chain, the Bill reserves certain activities exclusively for the government. These include:
- Enrichment or isotopic separation of radioactive substances
- Management of spent fuel, including reprocessing and recycling
- Production and upgrading of heavy water
Private players, however, can participate in the fabrication of nuclear fuel, including conversion, refining, and limited uranium-235 enrichment. They may also engage in handling, processing, and disposal of other prescribed substances under government regulations.
Imports, Safeguards, and Spent Fuel Management
The SHANTI Bill allows private firms to import, export, acquire, and possess nuclear fuel or prescribed substances, as well as import or export relevant technology and software.
All nuclear material—whether domestically produced or imported—will remain under Central Government surveillance for accounting and safeguard purposes. Spent fuel must either be delivered to the government for management or repatriated to the country of origin, while heavy water usage will remain under government supervision.
Strategic Importance and Long-Term Goals
The SHANTI Bill is intended to harness India’s nuclear potential through both public and private sector involvement, enabling domestic firms to participate in research, manufacturing, finance, insurance, and skill development within the nuclear sector.
Experts say the legislation could transform India’s civil nuclear landscape, attracting private investment, advancing technology adoption, and reinforcing the country’s commitment to sustainable energy growth.
Looking Ahead
With Cabinet approval in place, the SHANTI Bill is expected to be tabled in Parliament shortly, paving the way for a landmark reform of India’s nuclear energy framework. The bill not only encourages private sector participation but also ensures robust government oversight for critical and sensitive nuclear activities, balancing growth with safety and national security.
