SHANTI Bill 2025: India’s Nuclear Sector Reforms | UPSC Notes

On December 18, 2025, Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. It became an act after receiving Presidential assent on December 20, 2025.

• High relevance for Prelims & Current Affairs
• GS Paper III: Science & technology, energy security, clean energy transition
• Ethics (GS IV): Nuclear safety, public accountability, intergenerational responsibility
• Essay Paper: Energy security, sustainable development, technology vs risk

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill (SHANTI Bill 2025), modernises India's nuclear energy laws by replacing the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. 

The law allows limited private sector and joint venture participation in building, owning, and operating nuclear power plants for the first time, while retaining strategic areas, such as fuel production, under government control.

• Grants statutory recognition to the Atomic Energy Regulatory Board (AERB) for strengthened regulatory independence.
• It supports India’s clean-energy transition and the long-term objective of achieving 100 GW nuclear energy capacity by 2047.
• Establishes a structured system for granting, suspending, or cancelling licences and safety authorisations for nuclear energy production and use.
• Provides a regulatory framework for the use of nuclear and radiation technologies in health care, agriculture, industry, research, and other peaceful applications.
• India operates 24 reactors across 7 locations with 8.78 GW capacity (approximately 3% of total electricity generation).

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The SHANTI Bill, 2025, aims to modernise India’s nuclear energy framework to meet future energy needs while ensuring safety, sustainability, and private participation.

• Accelerate nuclear capacity expansion from the current 8.7 GW to 100 GW by 2047 (increasing nearly 10% of total electricity supply).
• Achieve net-zero emissions by 2070 and decarbonise the economy by harnessing clean, zero-carbon nuclear energy alongside renewables.
• Facilitate deployment of Small Modular Reactors (SMRs) and indigenous reactor designs (Bharat Small Reactors-BSMR-200, SMR-55) for flexible, faster deployment in industrial and remote applications.
• Enhance the utilisation of India's domestic nuclear fuel cycle capabilities developed over decades of responsible nuclear stewardship.
• Establishes a structured system for granting, suspending, or cancelling licences and safety authorisations for nuclear energy production and use. 

The SHANTI Bill brings several structural changes in how nuclear energy is governed in India, from licensing to safety to liability.

1. Private Sector Participation

• Permits private companies to operate nuclear plants, generate power, and manufacture nuclear equipment.
• Allows limited fuel-cycle activities (including uranium-235 enrichment up to notified limits) with prior safety approval.

2. Activities Reserved for the Central Government

• Strategic activities like uranium enrichment (unless notified), isotopic separation, and spent fuel management remain government-only.
• High-level radioactive waste handling and heavy water production are under exclusive Central control.

3. Licensing and Regulatory Oversight

• Establishes a structured system for granting, suspending, and cancelling nuclear licences.
• Makes safety authorisation mandatory for all radiation-related activities.

4. Operator Liability Framework

• Introduces a graded liability system instead of a single statutory liability cap.
• Liability limits vary based on the type and nature of the nuclear installation (Second Schedule).

5. Non-Power Applications of Nuclear Energy

• Regulates nuclear and radiation technologies in healthcare, agriculture, industry, and research.
• Ensures peaceful non-power applications operate under a legal safety framework.

6. Atomic Energy Regulatory Board (AERB)

• Grants statutory status to AERB, strengthening its legal authority.
• Enhances regulatory independence and nuclear safety oversight.

7. Central Government Acquisition Powers

• Vest's exclusive acquisition rights related to nuclear activities with the Central Government.
• Applies in specific cases notified under the Act.

8. Appellate Authority

• Designates the Appellate Tribunal for Electricity as the appellate authority.
• Empowers it to hear appeals under the SHANTI Bill.

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The Atomic Energy Regulatory Board (AERB) is India's principal statutory authority responsible for ensuring that the use of nuclear energy and ionising radiation does not pose undue risk to public health, worker safety, or the environment.

• Establishment: November 15, 1983 (now gets statutory status under the SHANTI Bill).
• Mission: Ensure safe use of ionising radiation and nuclear energy in India.
• Who it reports to: Previously reported to the government; now accountable to Parliament.
• Structure under SHANTI Bill: Chairperson + 1 whole-time member + up to 7 part-time members.
• Appointment tenure: 3 years, extendable for another 3 years.
• Eligibility: Chairperson and whole-time member must be persons of eminence in nuclear energy.
• Regulatory powers: Conducts safety reviews, inspections, issues safety authorisations, and enforces nuclear and radiation safety standards.

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The SHANTI Bill is seen as a landmark reform as it overhauls a 60-year-old regime and sets the stage for expanded nuclear energy participation and climate goals.

• Energy Security: Diversifies India’s energy mix, reducing reliance on coal and imported oil.
• Financial Relief: The government budget is limited; private money can speed up the construction of expensive nuclear plants.
• Technology Access: Resolving liability issues opens the door for advanced US and French technology (like EPRs and AP1000 reactors) to finally enter India.
• Innovation: Encourages the development of Small Modular Reactors (SMRs), which are safer, quicker to build, and ideal for industrial captive use.
• Healthcare Expansion: Enables nuclear medicine applications for cancer diagnosis and treatment through medical isotopes.

Despite its potential, the SHANTI Bill has raised some concerns among critics related to transparency, liability and risk oversight.

• Safety Fears: Private companies might cut corners on safety to maximise profits, increasing the risk of accidents like Fukushima or Chernobyl.
• Regulation Strength: While AERB gets statutory status, ensuring it remains truly independent of political or corporate pressure is a practical challenge.
• Cost of Power: Nuclear energy is expensive to set up. If private players demand high tariffs to recover costs, electricity might become costlier for consumers.
• Waste Management: Handling radioactive waste has been a massive responsibility for thousands of years; the bill leaves this burden largely on the state, which is a financial risk.

The SHANTI Bill became law on December 20, 2025, but its actual implementation depends on rules and procedures that are still being drafted. Here's the roadmap:

• The government must notify which private entities qualify to build/operate plants.
• Setting competitive power tariff frameworks to prevent monopolistic pricing.
• Clarifying uranium procurement and fuel availability terms.
• Establishing transparent compensation mechanisms and accelerated claim processing.

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