Cabinet clears SHANTI Bill, allows private entry into nuclear power sector

The Union Cabinet approved a bill aimed at opening the restricted nuclear power sector to private companies, a key move to achieve the country’s target of 100 gigawatts of nuclear power capacity by 2047.

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill proposes amendments to the civil liability law to protect nuclear plant operators, cap the liability of equipment suppliers, and restructure operator insurance coverage to Rs 1,500 crore per incident under the Indian Nuclear Insurance Pool.

The bill proposes permitting up to 49% foreign direct investment and establishing a unified legal framework for atomic energy, including the creation of a specialised nuclear tribunal. Entry of private players will be governed by clearly defined rules under government supervision, while the Department of Atomic Energy (DAE) will continue to retain control over core areas such as nuclear material production, heavy water, and waste management.

Finance Minister Nirmala Sitharaman had announced the government’s intention to open the sector to private participation in her February Budget speech. She also unveiled a Nuclear Energy Mission, allocating ₹20,000 crore for research and development of small modular reactors (SMRs), along with a plan to operationalise five indigenously developed SMRs by 2033. Prime Minister Narendra Modi had indicated last month that preparations were underway to allow private players into the nuclear sector.

At present, the Atomic Energy Act prohibits private entities and state governments from operating nuclear power plants. The Nuclear Power Corporation of India Limited (NPCIL), a public sector undertaking under the DAE, is the sole operator and manages all 24 commercial reactors in the country.