The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, represents the most significant overhaul of India’s nuclear governance framework since Independence.

By repealing:

• The Atomic Energy Act, 1962
• The Civil Liability for Nuclear Damage Act (CLNDA), 2010

The SHANTI Act establishes a modern and consolidated legal framework aimed at expanding India’s nuclear energy capacity to 100 GW by 2047.

The legislation reflects India’s broader transition toward:

• Clean energy expansion
• Energy security
• Decarbonization
• Advanced technological modernization

while balancing strategic sovereignty and private-sector participation.

Why the SHANTI Act?

For decades, India’s nuclear sector functioned largely as a public-sector monopoly.

While this model ensured strategic control and national security oversight, it also limited:

• Capital inflow
• Technological innovation
• Project execution speed
• Private-sector participation

To achieve its ambitious Net Zero 2070 targets, India requires a massive expansion of reliable “baseload” power that can complement renewable energy sources like solar and wind.

The SHANTI Act is designed to remove long-standing bottlenecks by shifting India’s nuclear ecosystem from a government-only structure toward a regulated and investment-friendly framework.

This transition aims to accelerate nuclear capacity expansion while maintaining strict sovereign control over strategic areas.

Core Pillars of the SHANTI Act

1. End of the Public Sector Monopoly

For the first time, the Act allows private Indian companies and joint ventures to:

• Build nuclear power plants
• Own nuclear facilities
• Operate civilian nuclear projects

This marks a historic structural shift in India’s energy governance framework.

Key Objectives of Liberalization

Mobilize Capital

The reform seeks to attract large-scale private investment to supplement government funding and accelerate infrastructure growth.

Accelerate Projects

Private-sector efficiency is expected to improve execution timelines and reduce delays in nuclear power projects.

Drive Innovation

The Act also promotes the faster adoption of advanced nuclear technologies, particularly:

• Small Modular Reactors (SMRs)
• Next-generation reactor systems

These technologies are considered safer, more flexible, and quicker to deploy.

2. Overhaul of Liability Framework

One of the biggest challenges under the earlier CLNDA, 2010 framework was the controversial “supplier liability” clause.

This clause held equipment suppliers partially responsible in the event of a nuclear accident, discouraging foreign investment and international technology partnerships.

The SHANTI Act introduces a significantly restructured liability system.

Operator-Centric Liability

The Act shifts primary responsibility for nuclear liability to the plant operator rather than equipment suppliers.

This reform improves investor confidence and aligns India’s framework more closely with international nuclear liability standards.

Graded Liability Caps

Liability under the SHANTI Act is now linked to reactor capacity.

Proposed Liability Structure

• ₹100 crore → Small research reactors and SMRs
• Up to ₹3,000 crore → Large nuclear reactors above 3,600 MW

This graded system creates a more balanced and predictable regulatory environment.

Nuclear Liability Fund (NLF)

The Act also establishes a government-backed Nuclear Liability Fund (NLF).

The NLF will:

• Handle claims exceeding operator liability caps
• Provide financial protection during major incidents
• Create a safety net for private and foreign investors

This mechanism is expected to improve confidence among global nuclear technology partners.

3. Strengthening Regulatory Independence

The SHANTI Act grants formal statutory status to the Atomic Energy Regulatory Board (AERB).

Previously, the AERB operated under the Department of Atomic Energy (DAE), leading to concerns regarding institutional independence.

The new framework strengthens:

• Regulatory autonomy
• Safety oversight
• Transparency
• Parliamentary accountability

An independent regulator is considered essential for maintaining public trust and international credibility in nuclear governance.

4. Retaining Strategic Sovereignty

While the civilian nuclear energy sector is being liberalized, the Act continues to maintain strict sovereign control over strategically sensitive areas.

Fuel Cycle Control

Critical activities such as:

• Uranium enrichment
• Spent fuel reprocessing
• High-level radioactive waste management

will remain exclusively under Central Government authority.

Resource Control

The exploration, mining, and extraction of:

• Uranium
• Thorium

will continue to remain reserved for the Union Government and designated state agencies.

This ensures that India retains complete control over strategic nuclear resources and national security interests.

Facilitating Advanced Technology

The SHANTI Act has been specifically designed to support India’s broader Nuclear Energy Mission.

Small Modular Reactors (SMRs)

The legislation strongly encourages the development and deployment of Small Modular Reactors (SMRs).

SMRs offer several advantages:

• Compact design
• Enhanced safety mechanisms
• Faster deployment timelines
• Lower infrastructure requirements

They are also being viewed as potential replacements for aging coal-fired power plants.

Indigenous Research and Development

The Act promotes innovation in:

• Indigenous reactor technologies
• Bharat Small Reactors (BSRs)
• Molten Salt Reactors
• Advanced nuclear fuel systems

This aligns with India’s broader goal of achieving technological self-reliance in the strategic energy sector.

Why the SHANTI Act Matters for India

The SHANTI Act is not merely a regulatory reform — it represents a long-term economic, technological, and strategic roadmap for India’s energy future.

The legislation attempts to balance:
✔ Private-sector efficiency
✔ International investment
✔ Energy security
✔ Strategic sovereignty
✔ Climate commitments

By modernizing its nuclear governance architecture, India aims to position nuclear power as a central pillar of:

• Energy independence
• Industrial growth
• Clean energy transition
• Long-term decarbonization

Prelims Pointers

Important Features of the SHANTI Act

• Repeals Atomic Energy Act, 1962
• Replaces CLNDA, 2010
• Allows private participation in civilian nuclear energy
• Creates Nuclear Liability Fund (NLF)
• Grants statutory status to AERB

Important Technologies

• Small Modular Reactors (SMRs)
• Bharat Small Reactors (BSRs)
• Molten Salt Reactors

Strategic Areas Still Under Government Control

• Uranium enrichment
• Fuel reprocessing
• Radioactive waste management
• Thorium and uranium mining

Mains Perspective

Possible Question

“India’s SHANTI Act, 2025 reflects the transition from state-controlled nuclear governance toward a regulated strategic energy ecosystem.” Discuss.

Key Dimensions to Include

• Energy security
• Clean energy transition
• Net Zero 2070 goals
• Liability reforms
• Private-sector participation
• Nuclear safety governance
• Strategic sovereignty
• Indigenous technological innovation

Conclusion

The SHANTI Act, 2025 marks a transformative moment in India’s nuclear energy journey.

By opening the sector to carefully regulated private participation while retaining sovereign control over strategic functions, the Act attempts to combine:

• Economic efficiency
• Technological modernization
• National security
• Climate responsibility

As India moves toward its long-term clean energy and decarbonization goals, nuclear energy is expected to play an increasingly important role in ensuring:

• Reliable baseload power
• Industrial competitiveness
• Energy independence
• Sustainable economic growth

The SHANTI Act therefore represents not just a legal reform, but a strategic blueprint for India’s future energy architecture.

“The SHANTI Act transforms nuclear energy from a tightly controlled strategic sector into a carefully regulated engine of India’s clean energy transition.”