India notified the draft rules for the SHANTI Act on Friday — paving the way for private companies to enter the nuclear energy sector. The rules replace multiple older frameworks to establish rules for operator liability, financial protection, waste management and radiation protection. It also provides for long-term regulatory oversight and conditions for the deployment of foreign reactors.
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.
What is the SHANTI Act?
The Act seeks to rapidly expand nuclear energy capacity and meet the net zero target by 2070. 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 also ends a longstanding government monopoly — opening the sector to private players for the first time. According to official updates, these companies will now 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 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,” Union Minister Jitendra Singh told the Rajya Sabha in late July.
The SHANTI Act also strengthens statutory regulation by granting statutory recognition to the Atomic Energy Regulatory Board.
SHANTI Act draft rules notified – Key details
The Department of Atomic Energy released the Draft rules for the SHANTI Act on Friday — outlining the operator liabilities and financial safeguards for private companies. The draft also requires foreign nuclear technology to have its design approved by a regulatory body in the country of origin.
Eligible entities looking to set up a nuclear power plant or reactor will have to apply for a license and go through screening procedures. The applicant can only begin negotiations with reactor technology vendors and set up the necessary infrastructure after receiving an ‘in-principle approval’. This can be granted even when the site or technology has not been selected.
The draft rules also state that the financial security has to remain in place till the removal of all spent fuel from the storage pool concerned. Nuclear plant operators have also been asked to maintain an insurance policy and ensure financial security for nuclear damage. According to the outline shared on Friday, the Centre will constitute a group of experts once every five years to review the maximum limits of an operator’s civil liability for nuclear damage.
It also mentions that there will be a single composite licence authorising the building, owning, operating and decommissioning of the nuclear power plant or reactor.
key safeguards for private companies
- Strict record-keeping, material balance, and inventory verifications for nuclear substances. Mandatory appointment of an approved officer to oversee material tracking and other compliance details.
- Protection of digital control systems and restrictions for nuclear data. The draft rules also mandate multi-layered physical barriers and access limits to counter theft, sabotage, or unauthorised entry.
- Operators will require a single, non-severable composite license spanning construction to decommissioning — with mandatory government reviews and strict quality standards.
- Licensees must enforce regulated containment and disposal for radioactive waste.
‘Foreign nuclear technology must meet approval’
The draft rules make it mandatory for any foreign nuclear power plant or reactor to have its design certified by the regulatory body in its country of origin. It also adds that such technology must already be operational in this country or any other foreign nation.
“Country of origin referred to in these rules means those countries which are self-reliant in nuclear reactor design and supply chain ecosystem whose regulatory approvals are trusted globally,” the official draft added.
The grant of licence shall be subject to fulfilment of the conditions:
- If a nuclear power plant or reactor is of a foreign design, its design should have been certified or approved in the country of origin by its regulatory body and should be operational either in country of origin or any other foreign country
- The technology intended to be imported or acquired domestically does not adversely affect the interest of India, does not constitute an unreasonable risk to public health and safety and is in conformity with the national policies framed under the Act.