Parliament on Thursday approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, marking a major policy shift in India’s nuclear power sector. The legislation, which was cleared by the Lok Sabha on Wednesday, was introduced in Parliament on Monday by Union Minister of State for Atomic Energy Jitendra Singh. With its passage in both Houses, the Bill now paves the way for private companies to play a direct role in building and running nuclear power plants in the country.

Until now, nuclear power generation in India has largely remained the domain of public sector companies, with only limited participation through joint ventures. The SHANTI Bill changes this framework by allowing private companies, joint ventures, and other entities approved by the central government to construct, own, operate, and even decommission nuclear power plants and reactors in India. However, these entities will be required to obtain proper licences and safety authorisations, especially concerning radiation exposure and nuclear safety norms.

One of the key objectives of the SHANTI Bill is to boost investment in the nuclear power sector. According to an earlier report by HT, the government aims to significantly scale up nuclear energy generation to help India achieve its ambitious target of 100 gigawatts (GW) of nuclear power capacity by the year 2047. At present, India’s nuclear capacity is far below this target, and the government believes that private participation will bring capital, technology, and efficiency to accelerate growth in the sector.

The Bill proposes several important changes to existing laws governing nuclear energy. A major provision is the removal of a controversial liability clause related to suppliers of nuclear fuel and technology. This clause, part of the Civil Liability for Nuclear Damage Act (CLND Act) of 2010, had long been seen as a deterrent for private and foreign companies looking to invest in India’s nuclear sector. By addressing this issue, the government hopes to make the sector more attractive to investors.

In addition, the SHANTI Bill seeks to rationalise the compensation or payout levels in the event of a nuclear accident. This is intended to create what the government describes as a more “pragmatic civil liability regime for nuclear damage,” balancing the need for accountability with a goal of encouraging investment and participation from a wider range of players.

Reacting to the passage of the Bill, PM Modi described it as a significant milestone for the country. In a post on X, the Prime Minister said the approval of the SHANTI Bill “marks a transformational moment for our technology landscape.” He also thanked Members of Parliament who supported the legislation, acknowledging their role in enabling the reform.

The Prime Minister highlighted the broader impact of the Bill on India’s future development goals. He said the legislation would help in “safely powering AI” and in supporting green manufacturing initiatives across the country. Emphasising the global relevance of the move, PM Modi stated that the Bill “delivers a decisive boost to a clean-energy future for the country and the world.” He further noted that it opens up “numerous opportunities for the private sector and the youth,” adding, “This is the ideal time to invest, innovate and build in India!”

The SHANTI Bill clearly defines who can participate in nuclear energy projects under the new framework. It allows “any department of the Government of India or any institution or authority or corporation established or owned or controlled by such government, any government company, any other company, a joint venture among any of the aforesaid; or any other person expressly permitted by the central government, by notification, to set up such facilities or undertake such activities.” This wide definition is aimed at creating flexibility while keeping overall control with the central government.

Another significant aspect of the Bill is its proposal to repeal two existing laws: the Atomic Energy Act of 1962, and the Civil Liability for Nuclear Damage Act of 2010. By repealing and replacing these older laws, the government intends to update India’s nuclear legal framework to better reflect current technological, economic, and energy needs. The Bill also removes a specific clause from the CLND Act that had been a point of concern for suppliers.

The statement of objects and reasons of the SHANTI Bill also mentions changes beyond plant operations and liability. It calls for amendments to the Patents Act, 1970, to allow the grant of patents related to atomic energy. This move is expected to encourage research, innovation, and technological development in the nuclear sector, including indigenous solutions and advanced reactor technologies.

Supporters of the Bill argue that nuclear energy is a crucial part of India’s clean energy transition. Unlike fossil fuels, nuclear power provides a stable and low-carbon source of electricity, which can complement renewable energy sources such as solar and wind. By opening the sector to private players, the government hopes to speed up project execution, reduce delays, and meet long-term energy demands.

With the passage of the SHANTI Bill, India enters a new phase in its nuclear energy journey. The government believes that the reforms will not only strengthen energy security but also support emerging sectors like artificial intelligence, advanced manufacturing, and green technologies. As the focus now shifts to implementation, all eyes will be on how effectively the new law translates into increased capacity, safer operations, and greater participation from the private sector.