Govt opens nuclear sector to private players: What SHANTI Bill proposes and why is it needed?

The hybrid mechanism is designed to improve investor confidence while maintaining strong safety protections.

December 12, 2025 18:24 IST

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The SHANTI Bill positions nuclear energy as a central element of India’s long-term decarbonisation roadmap. (Representational Image: Reuters)

The Union Cabinet on Thursday began a crucial meeting with several major policy proposals on the agenda. The Cabinet, chaired by PM Narendra Modi, greenlit several proposals including the approval of the 2027 Census, according to multiple news reports.

Among the proposals reportedly cleared today was the Nuclear Energy Bill. It was officially titled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. The legislation is aimed at expanding India’s nuclear energy capabilities and it also marks a structural shift in how the sector is governed.

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What does the SHANTI Bill do?

In a major policy departure, the Bill proposes opening India’s decades-old, tightly controlled nuclear ecosystem to private sector participation. This would overturn the long-standing monopoly of the Department of Atomic Energy (DAE) in core activities such as atomic mineral exploration, fuel fabrication, equipment manufacturing and potentially certain aspects of plant operations.

According to reports, the move is driven by India’s goal of reaching 100 GW of nuclear power capacity by 2047, a tenfold jump from current levels. Achieving this target will require substantial capital, advanced technologies and shorter project timelines. These are the factors that the government believes cannot be delivered through public funding alone.

Central to India’s decarbonisation roadmap

The SHANTI Bill positions nuclear energy as a central element of India’s long-term decarbonisation roadmap, especially as the country works to reduce its dependence on fossil fuels and build a more stable, low-carbon energy mix.

A key and closely watched component of the draft legislation is its proposed reform of nuclear liability norms, long a barrier for private and foreign investors. According to a report by Business Today, the current Civil Liability for Nuclear Damage Act has often been criticised for placing ambiguous and excessive liability burdens on suppliers.

What will the new framework cover?

Under the new framework being discussed, liability responsibilities will be clearly defined, insurance-backed liability caps will be introduced and the government will provide backstop support beyond a specified threshold, the report further stated.

The hybrid mechanism is designed to improve investor confidence while maintaining strong safety protections, aligning India’s nuclear governance with international standards.

This article was first uploaded on December twelve, twenty twenty-five, at twenty-four minutes past six in the evening.