In the evolving landscape of India’s energy security and sustainable development, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, marks a significant departure from the country’s longstanding nuclear framework. Introduced in December 2025, this legislation aims to modernize India’s civil nuclear sector by opening doors to private participation, streamlining liability norms, and enhancing regulatory mechanisms. For UPSC aspirants, understanding this policy shift is crucial, as it intersects with themes of energy policy, governance, national security, and environmental sustainability. This essay-type article analyzes the changes from the previous policy, highlights what’s new, and evaluates the pros and cons, providing a balanced perspective for civil services preparation.
India’s nuclear journey began with the Atomic Energy Act of 1962, which established a state monopoly to ensure control over sensitive technologies amid Cold War geopolitics. Over decades, this framework prioritized self-reliance but stifled growth, with nuclear power contributing only about 3% to India’s energy mix today. The Civil Liability for Nuclear Damage (CLND) Act of 2010 introduced supplier liability, which deterred foreign investments post the 2008 Indo-US nuclear deal. The SHANTI Bill, by repealing these acts, signals India’s ambition to scale nuclear capacity to 100 GW in the next 20 years, aligning with net-zero emissions targets by 2070.
Changes from the Previous Policy
The SHANTI Bill fundamentally alters the restrictive regime of the Atomic Energy Act, 1962, which confined nuclear activities to government entities like the Nuclear Power Corporation of India Limited (NPCIL). A 2015 amendment to the 1962 Act permitted joint ventures (JVs) with state-run companies such as NTPC and Indian Oil Corporation, but none materialized into operational plants due to bureaucratic hurdles and liability concerns. Similarly, the CLND Act, 2010, imposed strict liability on operators and allowed them to sue suppliers for defective equipment, which foreign vendors like Westinghouse and EDF viewed as a barrier.
Key changes include:
- Privatization of Operations: Unlike the previous monopoly, private companies and individuals can now fully own, build, operate, and decommission nuclear plants. This contrasts with the limited JV model, enabling entities like Tata Power, Adani Power, and Reliance Industries to invest directly.
- Liability Reforms: The Bill eliminates the broad supplier liability clause under Section 46 of the CLND Act. Now, operators’ right of recourse against suppliers is limited to written contracts or cases of intentional damage. Liability amounts are scaled based on reactor size, ranging from Rs 100 crore (for <150 MW) to Rs 3,000 crore (for >3600 MW), with a cap at 300 million Special Drawing Rights (SDR).
- Regulatory Overhaul: The Atomic Energy Regulatory Board (AERB) gains statutory status, and new bodies like the Atomic Energy Redressal Advisory Council and Nuclear Damage Claims Commission are introduced for dispute resolution and claims adjudication. Previously, oversight was fragmented and lacked independent adjudication.
- Information Restrictions: Section 39 empowers the Centre to classify nuclear-related information (e.g., plant designs, fissile material locations) as “restricted” for national security, exempting it from disclosure under the Right to Information (RTI) Act, 2005. This is a stark shift from the relatively open framework, raising concerns about transparency.
These modifications reflect a pragmatic approach to attract investments while retaining government control over “sensitive” activities like fuel enrichment and spent-fuel reprocessing.
What’s New in the SHANTI Bill
The Bill introduces several innovative provisions to catalyze India’s nuclear ambitions:
- Expanded Private Role: Private firms can now import, export, fabricate, and process nuclear fuel (including uranium enrichment up to a threshold), activities previously reserved for the state. Foreign Direct Investment (FDI) is allowed in JVs with Indian partners, and global suppliers (e.g., GE-Hitachi, Rosatom) can provide technology without fear of unlimited liability.
- Nuclear Liability Fund: A dedicated fund, potentially linked to the 2010 Convention on Supplementary Compensation, will cover claims exceeding operator liability or for government-owned plants. This ensures financial security for victims in case of incidents.
- Appellate Mechanisms: The Appellate Tribunal for Electricity will handle nuclear electricity disputes, with appeals directly to the Supreme Court within 60 days. Courts are barred from intervening in regulatory matters, protecting actions taken in “good faith.”
- R&D and Peaceful Uses: Clause 9 promotes research in nuclear energy for peaceful applications, excluding sensitive areas, fostering innovation in areas like medicine and agriculture.
- Penalties and Inspections: Violations attract fines from Rs 50 lakh to Rs 1 crore, with enhanced powers for inspections and registries of radioactive substances.
These elements position SHANTI as an “umbrella law,” consolidating fragmented regulations into a cohesive framework to boost nuclear capacity from the current 8.2 GW.
Pros and Cons: A Balanced Analysis
Pros
- Economic and Energy Boost: By dismantling the monopoly, the Bill could attract billions in private investments, accelerating India’s transition to clean energy. With nuclear power being low-carbon, it supports climate goals and reduces dependence on fossil fuels, potentially creating jobs and enhancing energy security.
- Technological Advancements: Eased liability norms will encourage collaborations with international players, bringing advanced reactors and safety technologies. This aligns with India’s “Atmanirbhar Bharat” by blending self-reliance with global partnerships.
- Scalability: Targeting 100 GW capacity addresses India’s growing energy demand (projected to triple by 2040), promoting sustainable development and reducing import bills.
- Victim Protection: Scaled liability and the dedicated fund ensure better compensation mechanisms than before, drawing from global best practices.
Cons
- Transparency and Accountability Issues: The RTI exemptions under Section 39 grant sweeping secrecy powers to the Centre, potentially shielding mismanagement or safety lapses from public scrutiny. Critics argue this “nukes” the RTI framework, eroding democratic oversight in a sector prone to environmental risks.
- Safety and Environmental Risks: Private involvement, while innovative, raises concerns about profit-driven shortcuts in safety. Historical incidents like Chernobyl underscore the dangers, and limited liability caps may not suffice for catastrophic events, burdening taxpayers.
- Centralization of Power: The Bill vests excessive discretion in the executive, bypassing parliamentary amendments to RTI and limiting judicial intervention. This could lead to arbitrary decisions and favoritism in licensing.
- Geopolitical Implications: While focused on civil nuclear, relaxed norms might indirectly affect India’s nuclear diplomacy, especially amid calls to revise the military “No First Use” doctrine. Opposition walkouts highlight political divisions, potentially delaying implementation.
In UPSC terms, aspirants should weigh these against constitutional principles like Article 21 (right to life and environment) and federalism, while linking to schemes like the Indo-US deal.
Conclusion
The SHANTI Bill 2025 represents a bold reform in India’s nuclear policy, transitioning from a protectionist era to one of liberalization and growth. While it promises economic dividends and energy independence, the trade-offs in transparency and safety demand vigilant implementation. For UPSC preparation, this topic exemplifies the interplay of policy evolution, governance challenges, and sustainable development. Aspirants must critically analyze such reforms, drawing on diverse sources to form nuanced arguments, ensuring India’s nuclear path truly embodies “shanti” – peace and progress for all.SHANTI Bill 2025: India’s New Nuclear Policy Changes & Analysis