Lok Sabha Passes SHANTI Bill, Opening India's Nuclear Energy Sector to Private Firms

Historic Shift in India's Nuclear Policy

In a significant legislative move, the Lok Sabha on Wednesday, December 17, 2025, passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This landmark legislation is set to fundamentally reshape India's civil nuclear sector by ending the state's exclusive control and opening it up to private and international participation. The bill was approved amidst debates, with opposition parties raising concerns over safety and liability.

The SHANTI Bill aims to replace the existing Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, consolidating them into a unified, modern legal framework. This overhaul is intended to meet India's escalating energy demands and ambitious climate commitments, including a target of 100 GW nuclear capacity by 2047.

Key Provisions and Objectives

The core objective of the SHANTI Bill is to incentivize private sector involvement in nuclear power generation. It allows Indian private companies and joint ventures (including those with foreign entities) to build, own, operate, and decommission nuclear power plants and reactors. This marks the first time since India's independence that private entities will be permitted to participate in this tightly regulated sector.

Key provisions of the bill include:

• Expanded Private Sector Role: Private firms can now engage in areas such as mineral exploration, nuclear fuel fabrication, equipment manufacturing, and research and development.
• Investment Limits: Private companies are permitted to hold up to 49% equity in nuclear power projects, with the government retaining majority control and strategic oversight.
• Revised Liability Framework: The bill introduces a new civil nuclear liability regime, replacing the 2010 law. It features a tiered liability structure with limits ranging from ₹100 crore to ₹3,000 crore based on reactor capacity, and mandates compulsory insurance for operators. It also addresses long-standing concerns around supplier liability, which global companies viewed as a risk.
• Strategic Operations: Sensitive and strategic operations, such as uranium enrichment, spent fuel handling, and heavy water production, will remain exclusively under the control of the central government.
• Regulatory Strengthening: The bill confers statutory status to the Atomic Energy Regulatory Board (AERB), strengthening its role in safety, security, and emergency preparedness.

Finance Minister Nirmala Sitharaman had initially announced plans for opening the nuclear power sector to private participation in her February Budget speech. Minister of State for Atomic Energy Dr. Jitendra Singh introduced the bill, describing it as a forward-looking reform.

Debate and Future Outlook

The passage of the SHANTI Bill was met with strong opposition from several parliamentarians, who demanded that the legislation be referred to a parliamentary panel. Opposition MPs, including Congress MP Shashi Tharoor, criticized the bill as a 'dangerous leap' into privatized nuclear expansion without adequate safeguards, raising concerns about public safety, environmental protection, and victim justice.

Despite the opposition, the government defended the bill as crucial for energy security, investment, and long-term growth, aiming to boost clean energy production and achieve India's 2070 net-zero targets. The bill now moves to the Rajya Sabha for further discussion before it can become law.