The SHANTI Act 2025

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, is a landmark piece of legislation in India that overhauls the nation’s 60-year-old nuclear legal framework. Passed during the Parliament’s Winter Session in December 2025, it received Presidential assent on December 20, 2025.

The Act primarily aims to scale India’s nuclear capacity from approximately 8–9 GW to 100 GW by 2047 to meet “Net Zero” climate goals and energy security needs.

Key Reforms and Provisions

End of State Monopoly: For the first time since independence, private Indian companies and joint ventures are permitted to build, own, operate, and decommission nuclear power plants under government license.

Repeal of Older Laws: The Act repeals and replaces two major foundational laws:

- Atomic Energy Act, 1962 (which restricted nuclear activity to the government).
- Civil Liability for Nuclear Damage Act, 2010 (which governed accident compensation).
- Statutory Status for the Regulator: The Atomic Energy Regulatory Board (AERB) is granted formal statutory recognition, strengthening its independence and regulatory authority over safety standards and inspections.

Revised Liability Framework:

- Graded Caps: Instead of a single flat cap, it introduces a tiered liability structure (₹100 crore to ₹3,000 crore) based on plant capacity.
- Supplier Shield: It removes the automatic “right of recourse” against equipment suppliers for defects, a move intended to align with international norms and attract foreign technology partners.
- Focus on New Technology: It provides a legal roadmap for the rapid deployment of Small Modular Reactors (SMRs) and indigenous 700 MW reactors.

Sensitive Activities (Reserved for the State)

- While the sector is opening up, the Central Government retains exclusive control over the most sensitive parts of the nuclear fuel cycle:
- Uranium enrichment and isotopic separation.
- Spent fuel reprocessing and high-level waste management.
- Heavy water production.

History of the SHANTI Act 2025

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, originated from the government’s need to modernise a 60-year-old legal framework and attract the massive private investment required to reach 100 GW of nuclear capacity by 2047.

1. Historical Context and Evolution

The SHANTI Act represents a “natural progression” from decades of highly controlled state dominance.

1948–1962: India’s initial nuclear programs were governed by the 1948 Act and then the Atomic Energy Act of 1962, which established a complete government monopoly over all nuclear activities.
1987–2015: Minor amendments to the 1962 Act gradually allowed public sector joint ventures, such as those between the Nuclear Power Corporation of India (NPCIL) and other government companies like NTPC, to participate in nuclear projects.

2008–2010: The 2008 Indo-US civil nuclear deal and subsequent Civil Liability for Nuclear Damage (CLND) Act, 2010, were intended to attract foreign investment. However, “Right of Recourse” clauses in the 2010 Act, which held suppliers liable for accidents, effectively deterred private and international participation for over a decade.

2. 2025 Legislative Timeline

February 2025: The Union Budget 2025–26 officially announced a “Nuclear Energy Mission” with an outlay of ₹20,000 crore to develop Small Modular Reactors (SMRs) and hinted at major legislative overhauls.
December 15, 2025: Minister of State Dr Jitendra Singh introduced the SHANTI Bill in the Lok Sabha.
December 17, 2025: The bill was passed by the Lok Sabha by voice vote, despite walkouts by several opposition members over concerns about a lack of detailed debate.

December 18, 2025: The Rajya Sabha approved the bill.
December 20, 2025: President Droupadi Murmu granted Presidential Assent, officially making it the SHANTI Act, 2025.

3. Strategic Rationale for Change

The Act was developed to address critical bottlenecks that stalled India’s nuclear growth for years:

Capital Gap: Achieving the 100 GW target by 2047 requires an estimated ₹15–20 lakh crore, which the public sector alone cannot mobilise.
Global Realignment: To secure technology transfers from global giants (like Westinghouse or EDF), the government replaced the restrictive 2010 liability law with a graded liability system that shields suppliers from long-term risks.
New Tech Focus: The Act provides the first formal legal framework for Small Modular Reactors (SMRs) and Bharat Small Reactors (BSRs), which are central to the new energy mission.

Main Criticisms and Concerns

Criticisms and concerns regarding the SHANTI Act 2025 primarily focus on potential compromises to public safety, environmental integrity, and democratic transparency in the pursuit of rapid private sector expansion.

Accountability and Liability Gaps

Supplier Shielding: Critics and opposition leaders argue that removing the “right of recourse” against suppliers (except via explicit contract) effectively absolves them of responsibility for faulty equipment or design flaws.
Socialising Risk: Because the Central Government assumes liability once an operator’s cap is exhausted, critics warn that private companies will retain profits while taxpayers bear the catastrophic financial burden of any major accident.
Inadequate Caps: The ₹3,900 crore (300 million SDR) cap is criticised for being grossly insufficient compared to the actual economic fallout of disasters like Fukushima, which cost over $180 billion.

Environmental and Health Risks

Bypassing Oversight: Section 10 reportedly allows the Atomic Energy Regulatory Board (AERB) to approve safety without a standard Environmental Impact Assessment (EIA) or public discussion.

Ecological Hotspots: Legal experts warn that rapid private proliferation could create unmonitored environmental hotspots and risk unassessed acid mine drainage into aquifers.
Waste Management: The Act is criticised for lacking a clear, legislated roadmap or dedicated funding for long-term high-level radioactive waste disposal and plant decommissioning.

Transparency and Governance Concerns

RTI Override: Section 39 explicitly places nuclear-related information—including reactor designs and safety submissions—beyond the reach of the Right to Information (RTI) Act, which critics say institutionalises secrecy and deters whistleblowers.
Regulatory Capture: While the AERB is now statutory, it remains under executive control. Critics argue this creates a conflict of interest, as the same government authority is promoting expansion, issuing licenses, and underwriting liability.
Marginalisation of States: Opposition members have flagged the “excessive centralisation” of the Act, noting it provides no defined role for state governments or local bodies in siting or disaster management.
Sovereignty and Strategic Risks
National Security: Concerns have been raised regarding private ownership of nuclear assets, with critics warning of potential hidden foreign control through complex technology and funding structures.
Fuel Cycle Fragmentation: Allowing private entities to participate in uranium mining and fuel fabrication is seen by some as a risk to sovereign oversight of proliferation-sensitive materials.

Impact of the Shanti Act of 2025 on India and the Way Forward

The SHANTI Act 2025 is expected to fundamentally reshape India’s energy landscape by transitioning the nuclear sector from a state monopoly to a collaborative ecosystem involving private and foreign capital.

Strategic Impact on India

Energy Security and Net-Zero: By targeting 100 GW of nuclear capacity by 2047, the Act positions nuclear power as a critical “baseload” source to balance the intermittency of solar and wind energy.
Economic Renaissance: Achieving the 100 GW goal requires an estimated investment of ₹15 lakh crore. The Act unlocks this by allowing private companies to build and operate plants, potentially creating a high-skilled “nuclear supply chain” in precision manufacturing and engineering.
Technological Leadership: The focus on Small Modular Reactors (SMRs) allows for decentralised power generation, which is ideal for industrial clusters (e.g., steel and cement) and repurposing retired thermal plant sites.

Regional Growth: States with high industrial demand, such as Karnataka and Tamil Nadu, stand to benefit most from increased grid stability and reduced peak-hour deficits.

The Way Forward

The success of the SHANTI Act depends on navigating several execution and governance challenges:

Implementation of the “Nuclear Energy Mission”: The government has allocated ₹20,000 crore to operationalise at least five indigenously designed SMRs by 2033. Timely execution is critical to avoid the decades-long delays seen in previous projects like the Prototype Fast Breeder Reactor.
Operationalising the Regulator: The Atomic Energy Regulatory Board (AERB) must now transition into its new statutory role. Ensuring its financial and administrative independence from the Department of Atomic Energy (DAE) is essential for credible safety oversight.
Addressing the Transparency Gap: The government may need to balance the broad “restricted information” clauses in Section 39 with public demand for safety data to prevent a loss of public trust similar to post-industrial disaster scenarios.
Fuel Security: India must diversify uranium import partnerships and increase domestic mining through newly allowed private collaborations to feed a tenfold increase in reactor capacity.
Grid Modernisation: Integrating 100 GW of nuclear power requires a massive upgrade of India’s transmission infrastructure to handle high-capacity baseload power alongside fluctuating renewables.

Disclaimer

The above article is based on the facts, figures, and information taken from “The Hindu” news platform and “PIB”.

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The SHANTI Act 2025

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