From 8.78 GW to 100 GW: How SHANTI Act plans to transform India’s nuclear sector and when can private firms apply for licences?

India has sought to boost nuclear power capacity to 100 GW by 2047 under the new law — updating the rules for private sector participation in nuclear power and liability. The ‘Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act of 2025’ repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010.

“The SHANTI Act is focused on the Nuclear Energy Mission of the Government of India, to achieve a target of 100 GW by 2047. This Act opens the nuclear energy sector to private participation. The rules and regulation under SHANTI Act are currently under the drafting stage and will be notified after following the due parliamentary process,” Union Minister Jitendra Singh told the Rajya Sabha in late July. 

What is the SHANTI Act?

It consolidates and updates the nuclear laws of India — supporting clean-energy transition and the long-term objective of achieving 100 gigawatt nuclear energy capacity by 2047.  It enables limited private participation in the nuclear sector under regulatory oversight. The SHANTI Act also strengthens statutory regulation by granting statutory recognition to the Atomic Energy Regulatory Board.

According to official data, the present nuclear energy capacity of India stands at 8.78 gigawatts. Multiple 700 MW and 1000MW indigenous reactors are being developed in different parts of the country, with capacity projected to cross the 22GW mark by 2031-32. 

Key tenets of the SHANTI Act

The Bill seeks to rapidly expand nuclear energy capacity and meet the net zero target by 2070. It also halts a longstanding government monopoly in the sector in favour of a collaborative model where private players can build and operate reactors. They would also be allowed to participate in core activities such as atomic mineral exploration, fuel fabrication, equipment manufacturing and potentially certain aspects of plant operations. Meanwhile the government will continue to retain control over sensitive fuel cycle activities. 

The Act also proposes a reform of nuclear liability norms that have long been a barrier for private and foreign investors. Liability responsibilities have been defined clearly and insurance-backed liability caps introduced. The government will provide backstop support beyond a specified threshold — alongside plans to “establish a Nuclear Liability Fund with levy charged from the tariff on the electricity sold to the consumers”. 

Section 84 and 85 of the Act outline a lengthy list of issues that need to be addressed while making the rules. Stipulations for the Centre and the Atomic Board cover dozens of areas and concerns — reportedly making the drafting process somewhat time-consuming. Rules and regulations created under this Act also need to be presented before both Houses of Parliament as soon as it is made.

“Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be composed in one session or in two or more successive sessions,” the Act adds. 

Consultations underway for SHANTI Act draft rules

Reports indicate that the government has already started consultations for the draft rules under SHANTI Act. A PIB press note from mid-July notes that the NITI Aayog had also “convened a stakeholder consultation on implementation” of the Act last month. The meeting brought together key leaders, policymakers and experts from the government, research institutions and industry to deliberate on the operational framework of the landmark Act.  

“Once the Act and rules come into force, all the stakeholders and private firms can carry out discussion on bilateral trade, investment and supply of technology with the local and foreign entities,” Singh told the Rajya Sabha on July 23.

Details shared by the government also indicated three major focus areas during technical decisions. The NITI Aayog-led deliberations last month had focused extensively on the regulations and FDI policy provisions related to the Act. 

The Press Information Bureau reported on July 11 that the consultation had also laid emphasis on the operationalisation phase —  with emphasis on “strengthening domestic manufacturing capabilities, ensuring operational readiness and building a skilled workforce to sustain the ecosystem”. The stakeholders reportedly discussed ways to enhance supply chain resilience and design dedicated capacity-building programmes that would support industrial scaling and develop a highly competent human resource base. The meeting also covered suitable insurance arrangements for long-term projects and examined the financial mechanisms and risk-mitigation frameworks needed to support implementation.