Date: 23.12.2025
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, is a landmark shift in India’s energy policy. It transitions the country from a state-run, closed nuclear regime to a “hybrid” model that integrates private capital. Several provisions of this bill warrant closer examinations ,some of the notable changes includes :
- Replacement Of Previous Bills : The Bill has been passed with an aim to replace both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.
- Private Sector Entry : For the first time since independence, the Bill ends the exclusive monopoly of the Nuclear Power Corporation of India Limited (NPCIL). While previous laws restricted nuclear operations to “Government Companies” (where the government held 51% stake), the SHANTI Bill allows the Central Government to grant licenses to private Indian companies and Joint Ventures.Private players can now participate in building, owning, and operating plants, as well as equipment manufacturing and front-end fuel fabrication.
- The Strategic “Red Line” : Despite liberalization, the government has defined clear “red lines” to protect national security and non-proliferation commitments. Enrichment of uranium-235, isotopic separation, and heavy water production remain exclusive government domains. All “spent fuel” (used nuclear fuel) must be handed back to the government for reprocessing or disposal. Private players cannot own or trade in spent nuclear materials.
- Transition to Graded Liability : The Bill modernizes the Civil Liability for Nuclear Damage Act, 2010, by moving away from a “one-size-fits-all” liability cap. Instead of a flat ₹1,500 crore cap, liability is now scaled based on the thermal capacity of the reactor:
- Large Reactors (>3600 MW): Capped at ₹3,000 crore.
- Standard Reactors (1500–3600 MW): Capped at ₹1,500 crore.
- Small Modular Reactors (SMRs) (<150 MW): Capped as low as ₹100 crore.
- Removal of “Right of Recourse” for Suppliers : Previously, operators could sue equipment suppliers (like GE, Westinghouse, or Rosatom) if an accident was caused by “defective equipment.” This “Right of Recourse” was a major deterrent for foreign and domestic vendors. The Bill removes the automatic right to sue for “defective equipment.” Operators can now only seek recourse if:
- It is explicitly written into their private contract.
- The incident was caused by a deliberate act with the intent to cause damage.
- Transparency vs. Secrecy (Section 39) : The Bill introduces Section 39, which has sparked debate regarding the Right to Information (RTI).The government can declare specific categories of information (design, location, security audits) as “restricted.”Once information is classified as restricted, it is exempted from the RTI Act, and the decisions of the government in this regard are final and cannot be appealed in civil courts.
