Yesterday, the Indian Parliament witnessed a legislative event that will be remembered as the “1991 moment” for the energy sector. Minister of State Dr. Jitendra Singh introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025.
For the readers of dharmendrakumhar.com, this isn’t just another policy update. It is a fundamental reset of India’s atomic framework. By seeking to repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, the government is dismantling decades of state monopoly to invite private and foreign investment into the nuclear fold.
- The Death of Monopoly: A 49% Revolution
Since the days of Dr. Homi Bhabha, nuclear power in India has been a “fortress sector,” restricted entirely to the Nuclear Power Corporation of India (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam (BHAVINI). The SHANTI Bill changes this by allowing Indian private companies to apply for licenses to build, own, operate, and decommission nuclear power plants.
However, the government is playing it smart. To ensure national security remains paramount, the Bill caps private and foreign equity at 49%. This means while companies like Tata Power, Reliance, and Adani can bring in capital and management expertise, the strategic “steering wheel” remains in the hands of the Indian government.
- The 100 GW Ambition: Why Nuclear, Why Now?
India’s current nuclear capacity stands at a modest 8.2 GW, contributing less than 2% to our total energy mix. Yet, the Prime Minister has set a colossal target of 100 GW by 2047.
Why the sudden rush? The answer lies in the baseload problem. As India aggressively expands solar and wind energy, the grid faces instability because the sun doesn’t always shine and the wind doesn’t always blow. To support a $10 trillion economy and 24/7 industrial operations (especially for power-hungry data centers and semiconductor fabs), we need a clean, steady, and high-density power source. Nuclear is the only carbon-free technology capable of providing this “round-the-clock” (RTC) power.
- The SMR Factor: Small is the New Big
One of the most exciting aspects of the SHANTI Bill is the push for Small Modular Reactors (SMRs). Traditional nuclear plants are massive, multi-billion-dollar projects that take over a decade to complete. SMRs, on the other hand, have a capacity of less than 300 MW and can be factory-built.
The government has allocated ₹20,000 crore for an SMR mission. These reactors are perfect for “captive power”—meaning a steel plant or a tech park could have its own dedicated nuclear reactor on-site. The SHANTI Bill provides the legal pathway for private entities to manufacture and operate these modular units, significantly reducing the gestation period for nuclear projects.
- Solving the “Right of Recourse” Bottleneck
For over a decade, the Civil Liability for Nuclear Damage Act (2010) was the biggest hurdle for foreign partners like Westinghouse (USA) or EDF (France). A specific clause—the “Right of Recourse”—allowed Indian operators to sue equipment suppliers if an accident occurred due to faulty parts. Global vendors found this risk uninsurable and stayed away.
The SHANTI Bill replaces this with a pragmatic liability regime. It caps the maximum liability for a nuclear incident at 300 million Special Drawing Rights (SDRs), aligning India with international conventions. By exempting equipment suppliers from long-term, uncertain litigation, the Bill effectively re-opens the doors for the Indo-US civil nuclear deal to finally bear fruit.
- Institutional Overhaul: The New AERB
To manage this new “hybrid” model of public and private players, the Bill grants statutory status to the Atomic Energy Regulatory Board (AERB). Previously an executive body, the new AERB will be an independent powerhouse answerable to Parliament. It will have the final say on safety authorizations for everything from mining atomic minerals to fuel fabrication and waste management.
Furthermore, the Bill proposes a Nuclear Damage Claims Commission and a specialized Atomic Disputes Tribunal to ensure that any legal or safety issues are resolved with the speed of a fast-track court, rather than being stuck in legal limbo for years.
- What remains under Government Control?
Despite the “opening up,” the SHANTI Bill is clear about “Red Lines.” The following sensitive activities will remain exclusively with the Department of Atomic Energy (DAE):
- Enrichment and Isotopic Separation: The heart of nuclear fuel production.
- Spent-Fuel Reprocessing: Managing used nuclear fuel to extract plutonium.
- Heavy Water Production: Essential for India’s indigenous PHWR (Pressurized Heavy Water Reactor) fleet.
Conclusion: A Paradigm Shift for dharmendrakumhar.com Readers
The SHANTI Bill 2025 is not just about power plants; it’s about self-reliance (Atmanirbharta). It acknowledges that the government cannot fund the $100 billion required to reach 100 GW alone. By inviting the private sector, India is leveraging the same “Triple-P” (Public-Private Partnership) model that revolutionized our highways and airports.
As a nation, we are moving from being “nuclear-cautious” to “nuclear-ambitious.” For the common man, this means a future with less coal smoke, more stable electricity bills, and a robust industrial sector powered by the atom.
What is your view on private companies managing nuclear plants? Is the 49% cap enough for safety? Let me know in the comments below!
