India’s Nuclear Power Revolution: How the SHANTI Bill Unlocks Private Investment and Energy Security 

The proposed Atomic Energy (Amendment) Bill 2025, rebadged as the SHANTI Bill, aims to fundamentally overhaul India’s state-controlled nuclear sector by amending the Atomic Energy Act of 1962 to allow private and foreign investment for the first time.

This strategic shift is driven by the urgent need for reliable, low-carbon baseload power to complement intermittent renewables and meet rising energy demand, targeting a massive scale-up from the current 8 GWe to 100 GWe by 2047. A core pillar of the reform is fostering indigenous Small Modular Reactors (SMRs) through a dedicated ₹20,000 crore R&D mission and attracting private capital for their deployment. Crucially, the bill seeks to resolve the long-standing bottleneck of the 2010 nuclear liability law, which has deterred foreign vendors, thereby aiming to finally unlock the commercial potential of the 2008 Indo-US civil nuclear deal. If successfully implemented with a balanced approach to safety, liability, and investment, this framework could become a cornerstone of India’s energy security and climate strategy.

India’s Nuclear Power Revolution: How the SHANTI Bill Unlocks Private Investment and Energy Security 

India is undertaking its most significant nuclear energy reform in over six decades. The proposed Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill 2025 aims to dismantle a longstanding state monopoly, opening the sector to private investment to meet an audacious goal: growing nuclear capacity from under 10 gigawatts (GWe) today to 100 GWe by 2047. This move represents a strategic pivot, positioning nuclear power as a clean, reliable baseload essential for both economic growth and climate commitments. 

1 The SHANTI Bill: Rewriting Six Decades of Nuclear Policy 

The SHANTI Bill proposes a foundational rewrite of India’s nuclear governance, centered on two pivotal legislative changes. 

• Amending the Atomic Energy Act, 1962: This Cold War-era law centralized all nuclear activities—from mining to generation—under government control, explicitly barring private sector participation. The new bill breaks this monopoly, allowing regulated private entry into the entire nuclear value chain. For the first time, private companies can participate in uranium exploration, fuel fabrication, reactor component manufacturing, and potentially aspects of plant operations and ownership. 

• Reforming the Civil Liability for Nuclear Damage Act (CLNDA), 2010: This law, passed after the landmark Indo-U.S. nuclear deal, became a major stumbling block. Its Section 17(b) allows plant operators to seek “right of recourse” from equipment suppliers in case of an accident, a provision foreign vendors see as a deal-breaker. The SHANTI Bill aims to create a clearer, more predictable liability regime, potentially capping supplier liability and aligning India with global conventions like the Convention on Supplementary Compensation (CSC). 

The scale of the ambition is captured in the following comparison of India’s nuclear landscape before and after the proposed reforms: 

2 The Driving Forces: Energy Security, Climate, and Economics 

This radical policy shift is not occurring in a vacuum. It is driven by a powerful convergence of energy, economic, and environmental imperatives. 

• The Baseload Dilemma in the Renewable Age: India’s electricity demand is projected to double by 2040. While solar and wind expansion is rapid, their intermittent nature creates grid instability without massive, costly storage. Nuclear power offers a compelling solution: 24/7 low-carbon electricity with a minimal land footprint and long-term price stability. As the International Atomic Energy Agency (IAEA) notes, nuclear is increasingly seen globally as a crucial partner to renewables for a reliable clean energy transition. 

• A Pragmatic Climate Tool: At the COP26 climate summit, India committed to achieving net-zero emissions by 2070. With coal projected to dominate the energy mix for decades, nuclear energy provides a viable path for deep decarbonization of the power sector without sacrificing the baseload power needed for industrialization and development. 

• Economic and Strategic Calculus: Financing 100 GWe of new nuclear capacity requires colossal capital, estimated in the hundreds of billions of dollars. The state alone cannot shoulder this burden. Opening the sector taps into private capital and global investment pools. Furthermore, developing a domestic SMR industry could position India as a technology hub and exporter, enhancing its strategic autonomy and geopolitical leverage. 

3 Unlocking a Stalled Partnership: The Indo-U.S. Dimension 

A key strategic objective of the SHANTI Bill is to finally realize the long-stalled promise of the 2008 Indo-U.S. Civil Nuclear Agreement. That landmark deal ended India’s nuclear isolation following its 1974 and 1998 tests, granting it a unique waiver from the Nuclear Suppliers Group (NSG) despite not being a signatory to the Non-Proliferation Treaty (NPT). 

However, nearly two decades later, its commercial potential remains largely untapped. Major projects with U.S. companies like Westinghouse and GE Hitachi have been frozen, primarily over liability concerns under the CLNDA. As noted in a June 2025 report, “the only foreign presence in India is that of Russia in Kudankulam,” where agreements predated the liability law. 

The SHANTI Bill’s liability reforms are directly aimed at removing this last major roadblock. By creating a framework that U.S. suppliers and insurers can work with, the bill is expected to unlock these stalled projects and integrate nuclear cooperation as a key pillar of broader Indo-U.S. trade and strategic ties. 

4 Small Modular Reactors: The New Frontier 

Central to India’s new nuclear strategy is a strong bet on **Small Modular Reactors (SMRs)**—typically reactors under 300 MWe that are factory-built and assembled on-site. 

• Why SMRs? They offer lower upfront capital costs, faster deployment, and scalability. Their smaller size makes them suitable for repurposing retiring coal plant sites, providing captive power for energy-intensive industries (steel, cement, data centers), and powering remote locations. 

• India’s SMR Push: The government has launched a Nuclear Energy Mission with ₹20,000 crore to develop at least five indigenously designed SMRs by 2033. The Bhabha Atomic Research Centre (BARC) is already developing designs like the 220 MWe Bharat Small Reactor (BSR) and a 200 MWe light-water reactor. 

• Private Sector Enthusiasm: This is where private interest is most intense. Major Indian corporations—including Reliance Industries, Tata Power, Adani Power, and JSW Energy—have expressed serious interest and identified 16 potential sites across six states for SMR deployment. The likely model involves private players financing and building the reactors, with state-owned NPCIL retaining ownership and operational control, providing the private investor with long-term, carbon-free captive power. 

5 Navigating the Challenges Ahead 

Despite its transformative potential, the SHANTI Bill’s path is fraught with complex challenges that will test India’s regulatory and diplomatic resolve. 

• The Liability Tightrope: Reforming the CLNDA is a delicate balancing act. While industry demands clarity and caps to align with global norms, there are legitimate concerns about diluting accountability. Opponents point to the tragic legacy of the Bhopal gas disaster, where victims struggled for justice, as a cautionary tale against weakening supplier liability. The government must craft a solution that protects public interest while providing the certainty investors demand. 

• Safety, Trust, and Regulatory Independence: Expanding nuclear capacity hinges on public trust, which requires demonstrably robust and transparent safety oversight. The bill’s proposal for an independent regulator is crucial but its effectiveness will depend on its operational autonomy, adequate staffing, and freedom from political or commercial influence. Civil society groups have already voiced concerns that privatisation could lead to compromises in safety and waste management. 

• Execution at Scale: India’s historical track record on nuclear capacity targets has been modest, with previous goals routinely revised downward. Going from under 10 GWe to 100 GWe in 22 years is an unprecedented scale-up. It will require not just capital and legal changes, but also a massive expansion of skilled human resources, a streamlined project approval process, and a resilient domestic manufacturing supply chain. 

6 Conclusion: A Cornerstone for a “Viksit Bharat” 

The SHANTI Bill, 2025, is more than a piece of energy legislation; it is a statement of strategic intent. By transitioning from a closed, state-dominated model to an open, investment-friendly framework, India is positioning nuclear energy as a cornerstone of its developed nation (“Viksit Bharat”) vision for 2047. 

Success would mean a more secure, diversified energy basket less vulnerable to global fuel shocks, a powerful tool for meeting climate obligations, and a thriving high-tech industrial ecosystem. Failure to address the accompanying challenges of safety, liability, and public trust could stall this ambition. 

If implemented with careful balancing, rigorous oversight, and institutional integrity, the SHANTI Bill could indeed help power India’s journey toward becoming a global economic powerhouse, securely and sustainably.