Lok Sabha on Wednesday passed a Bill that would allow private sector participation in the country’s nuclear power sector. Calling it a “milestone legislation”, Union minister Jitendra Singh said that the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, would help the country achieve its target of 100 giga watts (GW) of nuclear capacity by 2047.
“India’s role in geopolitics is increasing. If we have to be a global player, we have to follow global benchmarks and global strategies. The world is moving towards clean energy. We too have set a target of 100 GW of nuclear energy capacity by 2047,” he said.
The legislation includes core activities such as exploration of atomic minerals, fuel fabrication, equipment manufacturing, and aspects of plant operations. The SHANTI Bill proposes a slew of structural reforms, including an independent nuclear safety authority and a dedicated nuclear tribunal.
“ The Bill enables a single harmonized law for nuclear power in India by consolidating and repealing the Atomic Energy Act 1962 and Civil Liability for Nuclear Damage Act (CLNDA) 2010,” said Anujesh Dwivedi, Partner, Deloitte India.
The Bill caps the liability at $360 million, or about Rs 3,000 crore at current exchange rates.
Nuclear Power will now be open to participants beyond the Central government and its entities by the introduction of a licensing framework.
“SHANTI Bill, when enacted, will also address the issue of suppliers’ exposure to civil liabilities, which were introduced under CLNDA 2010. This move will alleviate the concerns of global players and pave the way for leveraging their capabilities and IPR (Intellectual Property Rights) for future projects in India,” Dwivedi said.
The Bill seeks to provide a comprehensive legal framework for the promotion, regulation and expansion of nuclear energy and radiation applications in the country in line with its target.
Another significant and progressive aspect of this Bill is the opening up of research, development, design, and innovation in nuclear energy for peaceful purposes, which can be undertaken without the requirement of any license, Dwivedi noted. “It will have an enduring impact on the country’s ability to achieve its 2070 Net Zero ambition,” he said.
Small Modular Reactors
The Department of Atomic Energy informed the parliament that Bhabha Atomic Research Centre (BARC) has initiated design and development works on small modular reactors which includes a 200 MWe (Megawatt electrical) Bharat Small Modular Reactor (BSMR-200), and a 55 MWe Small Modular Reactor (SMR-55) to fulfill the country’s nuclear goals.
BSMR-200 and SMR-55 can be deployed as captive plants for energy intensive industries such as aluminum, steel, etc., repurposing of retiring fossil fuel-based power plants and for providing energy for remote as well as off-grid locations. Thus, these SMRs are positioned as key contributors to ensure decentralised, scalable and cleaner nuclear power solutions across the country, the government said.
Additionally, the government is also developing a high temperature gas cooled reactor with capacity up to 5 MW for hydrogen production.
“Necessary technology for deployment of the large reactors such as 700 MWe indigenous PHWRs and Small reactors such as BSMR-200 and SMR-55, is available in the country and majority of equipment are within manufacturing capability of Indian industries with technological handholding by DAE,” the government said.
Post FY25 budget announcement of private players’ participation in deploying Bharat Small Reactors (BSR) as captive plants for industries, NPCIL has floated ‘Request for Proposal’ to deploy 220-MW PHWR technology-based BSR reactors by Indian industries, under the existing legal framework.
India’s Three-Stage Nuclear Strategy
The mission is further supported by R&D with the objective to develop indigenous advanced reactors comprising safety features, its fuel cycles and technology for hydrogen production for coupling with reactors for the decarbonising transport sector & process industry, the DAE said.The DAE has adopted a three-stage nuclear power programme, based on a closed nuclear fuel cycle, for generation of nuclear power and for achieving long term energy security with a view to optimally utilise limited uranium reserves and large thorium reserves in the country, it said.
The three-stage nuclear power programme, which is to be implemented sequentially, aims to multiply the domestically available fissile resources through the use of natural Uranium in Pressurised Heavy Water Reactors (first stage), followed by use of Plutonium obtained from the spent fuel of Pressurised Heavy Water Reactors in Fast Breeder Reactors, in the second stage.
Large scale use of Thorium will subsequently follow making use of Uranium- 233 that will be bred in Fast Breeder Reactors, when adequate nuclear installed capacity in the country has been built, the government informed the parliament. Accordingly, the utilisation of thorium as a practically inexhaustible energy source has been contemplated during the third stage of the Indian nuclear programme, which can be reached in future, it added.
The first stage of the nuclear power programme comprising indigenous Pressurised Heavy Water Reactors (PHWRs) is in the industrial domain, as per the government, adding a prototype Fast Breeder Reactor (PFBR) under the second stage is being commissioned by Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI) at Kalpakkam, Tamil Nadu.
The government has drawn up a roadmap to reach a capacity of 100 GW by 2047, of which NPCIL will contribute 54 GW by 2047 by setting up new nuclear power plants based on indigenous Pressurised Heavy Water Reactors and Light Water Reactors with foreign cooperation.
The present installed nuclear power capacity is 8.8 GW and the nuclear electricity generated during 2024-25 is 56,681 million units.
In the year 2024-25, the share of nuclear power was about 3.1% in the total electricity generation of the country.