For decades, nuclear power in India has been a government-only club. No private company could build, own or run a reactor. That may be about to change.
The Department of Atomic Energy (DAE) has released draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2026. Brokerage firm Elara Capital believes the framework could give a major push to India’s Small Modular Reactor (SMR) plans. So, which stocks could be positioned to benefit?
Why the SHANTI Rules matter
Simply put, it opens the door for private companies to enter civil nuclear power generation. Until now, only public sector entities could do this. The new rules let eligible private firms build, own, operate and eventually decommission nuclear plants and reactors.
The rules also expand the potential use of nuclear power beyond conventional electricity generation. Captive power, industrial process heat and hydrogen production are among the applications covered by the framework. That is a much bigger playing field than just running a power station.
But does private participation mean fewer checks?
Not exactly. The framework continues to impose requirements related to safety, financing, fuel supply, nuclear liability, radioactive waste and decommissioning.
SHANTI Rules: Private Sector Enters India’s Nuclear Power
One licence instead of many
Here is the practical bit. Instead of chasing multiple approvals at every stage, companies will apply for a single composite licence. This one licence covers construction, ownership, operation and decommissioning.
Companies will also get access to approved reactor technologies, both Indian and foreign, subject to regulatory clearance. That could open the door to global technology partnerships.
SMRs could be the biggest opportunity
The proposed framework could be particularly relevant for Small Modular Reactors, which are smaller nuclear reactors that can potentially be deployed for industrial and captive power requirements.
Elara Capital believes the rules could help move India’s SMR plans from an early-stage concept towards actual project development.
According to the Elara Capital report, “The SHANTI Rules and Regulations could materially accelerate India’s small modular reactor (SMR) opportunity by providing a framework for private participation.”
The brokerage also points to planned SMR ambitions involving NTPC, Jindal Nuclear, Tata Power, Reliance and Adani Power.
Who could benefit from the nuclear investment cycle?
The impact may not stop with power producers. A nuclear project requires a wide ecosystem of engineering, construction and specialised equipment. This is where companies such as Larsen & Toubro (L&T), Bharat Heavy Electricals (BHEL), Power Mech Projects, MTAR Technologies and Walchandnagar Industries could potentially enter the picture.
Elara Capital said the framework could create “a sizeable EPC and equipment opportunity” for these companies.
Who Could Benefit from India’s Nuclear Push?
Technology access could speed up deployment
Another important feature is the proposed access to approved domestic and foreign reactor technologies. This could allow Indian companies to explore technology partnerships rather than depending solely on domestically developed designs.
The brokerage house in the report noted, “The framework’s allowance for approved domestic and foreign reactor technologies could facilitate technology partnerships and faster deployment.” However, the rules still retain government control over strategic areas such as uranium and thorium mining.
India’s nucleat push: Safety remains a key condition
The proposed regulations also introduce stage-wise safety approvals covering site selection, construction, commissioning, operations and decommissioning.
Periodic safety reviews, emergency preparedness, radiation protection and radioactive waste management will remain part of the framework.
For investors,the nuclear opportunity is therefore not about immediate earnings. Projects will still require regulatory approvals, technology decisions and significant capital.
But if the framework translates into actual project execution, Elara Capital believes India’s nuclear pipeline could become a much larger opportunity for developers, EPC players and equipment suppliers.
Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.