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Introduction

Nuclear power currently contributes only about 3% of India’s electricity generation. In this context, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 seeks to reform India’s civil nuclear framework by expanding the pool of operators and easing investment constraints. The Bill repositions nuclear energy as a key pillar of India’s clean and net-zero transition.

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Advantages of the SHANTI Bill

• Expands investment base: Allows licensed participation of domestic private entities and joint ventures, widening capital mobilisation for large-scale nuclear expansion.
  Eg: Permission for “any other company” to operate nuclear facilities beyond government entities.
• Supports clean energy transition: Enables scaling up low-carbon baseload power critical for achieving net-zero targets.
  Eg: Government target of 100 GW nuclear capacity by 2047, including SMRs.
• Encourages risk-sharing: Distributes construction and financial risks across multiple operators rather than the state alone.
• Protects sensitive fuel cycles: Retains state control over proliferation-sensitive activities while allowing private participation in plant construction and supply chains.
• Reduces regulatory uncertainty: Consolidates safety, licensing, liability and dispute resolution within a single statutory framework, lowering transaction costs.
• Facilitates faster deployment: Streamlined approvals can shorten site clearance and commissioning timelines.

Risks Associated with the SHANTI Bill

• Limited operator liability: The liability cap of ₹3,000 crore may be insufficient for compensating victims and environmental remediation after a major accident.
  Eg: Centre assumes liability beyond the operator cap.
• Public burden of risk: Government can assume full liability for non-government installations in public interest, shifting risks to taxpayers.
• Uneven supplier accountability: Supplier liability depends largely on contractual terms, leading to inconsistent accountability across projects.
• Transparency concerns: Exemption of government installations from mandatory insurance places greater importance on public financial disclosure.
• Regulatory independence deficit: Significant control of appointments by the Centre and Atomic Energy Commission may weaken regulator autonomy.
• Public trust challenges: Perceived concentration of power and limited oversight could affect social acceptance and investor confidence.

Conclusion

The SHANTI Bill strengthens nuclear energy’s role in India’s clean energy strategy by unlocking investment, reducing regulatory barriers and safeguarding sensitive domains. However, liability caps, governance concentration and regulatory independence remain key concerns. Balancing scale, safety and accountability will determine whether nuclear power can sustainably support India’s net-zero ambitions.

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