What is the Shanti Bill? India’s Plan to Open Nuclear Sector to Private Players

The Lok Sabha passed legislation that permits private Indian corporations to construct and run nuclear plants for the first time, marking the largest step India has taken in decades to transform its nuclear power sector. Dismantling the legislative structure that has maintained nuclear power firmly under state control since the early years of the atomic programme is the goal of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (Shanti) Bill, 2025.

The change, according to the administration, is necessary to scale clean, dependable power. It raises unanswered concerns about risk, safety, and responsibility, according to critics. The Bill, if passed, would replace the Civil Responsibility for Nuclear Damage Act of 2010 and the Atomic Energy Act of 1962 with a single, unified law that would regulate nuclear power generation, safety, responsibility, and compensation. The government's aim to extend nuclear technology beyond electricity is reflected in the law, which also covers non-power uses of nuclear and ionising radiation, such as industrial, medicinal, and research purposes.

End of Nuclear Power Corporation

The termination of the Nuclear Power Corporation of India's effective monopoly over power generation is the most significant shift. Subject to central government approval, Indian commercial businesses and Indian-incorporated joint ventures may seek licences to construct, own, operate, and decommission nuclear power facilities under the Bill.

The opening, nevertheless, falls short of permitting foreign rule. Nuclear operating licences cannot be held by companies that are controlled by foreign organisations or that were not incorporated in India. Only technology partners, suppliers, or service providers operating within Indian corporations are permitted to participate.

The government's attempt to draw in international knowledge without giving up control of vital infrastructure is reflected in this arrangement. According to earlier reports from Reuters, ownership limits and supplier responsibility were two of the main obstacles for foreign nuclear vendors.

Key Changes Made by the Government

The Atomic Energy Regulatory Board (AERB), which had previously functioned under executive authority, now has legislative status according to the Bill. The regulator will have the authority to impose safety regulations, grant permissions, carry out examinations, and revoke or suspend licences. A planned Atomic Energy Redressal Advisory Council would hear disputes before the Supreme Court hears appeals.

At a time when the government is likewise promoting rapid expansion, opposition MPs questioned if the regulator would be sufficiently independent. The reform has been connected by ministers to India's larger energy and climate objectives. With slightly under 9 GW of installed capacity, nuclear power now provides around 3% of India's electricity. In order to guarantee steady baseload electricity, the government has expressed plans to grow this significantly during the ensuing decades in conjunction with renewable energy sources.

During his speech in Parliament, State Minister Jitendra Singh called the Bill a "historic" step that would help India achieve its goal of being net-zero by 2070 and less dependent on fossil fuels. The opposition has not been persuaded. During the debate, MP Shashi Tharoor cautioned that the bill was a "dangerous leap into privatised nuclear expansion," contending that business interests shouldn't take precedence over environmental preservation or public safety. Others expressed worries about regulatory independence, liability caps, and the rate of private participation introduction.