Cabinet Approves SHANTI Bill, Opening India’s Nuclear Energy Sector To Private Participation

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Atomic Energy Bill, 2025, named SHANTI – Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India. This Bill brings the biggest change in India’s nuclear energy sector since its creation. For more than six decades, nuclear power has been fully controlled by the Department of Atomic Energy. With SHANTI, the government plans to open the sector to private companies for the first time.

The Bill is likely to be introduced in Parliament early next week during the Winter Session. Once passed, it will bring together several existing laws, remove regulatory gaps, and create a single legal framework to support the faster growth of nuclear power in the country. India already has full capabilities across the nuclear energy value chain, from mining to power generation.

This reform is important because India has set a target of achieving 100 gigawatts of nuclear power capacity by 2047. At present, India operates 25 nuclear reactors with a total installed capacity of 8,880 megawatts. Another 17 reactors are under construction. The government plans to increase capacity to 22,000 megawatts by 2032 and then scale it up further to 100 gigawatts by 2047. This expansion is seen as essential for meeting India’s net-zero emissions goal by 2070 and for ensuring reliable base-load power as coal and gas plants are gradually phased out.

Reaching this scale will require huge investments, advanced technology, and quicker project execution. Government funding alone is not enough. By allowing private companies to enter the sector, the SHANTI Bill aims to attract capital, encourage innovation, and speed up project development. The private sector may be allowed to participate in areas such as atomic mineral exploration, fuel production, equipment manufacturing, and possibly certain plant operations.

The Bill also proposes a modern legal structure to replace older laws, simplify licensing, and strengthen safety and compliance systems. An independent nuclear safety authority is expected to be created to improve transparency and align India with global safety standards. Changes to nuclear liability laws are also planned to clearly define the responsibilities of operators and suppliers, supported by insurance and government backing.

Finance Minister Nirmala Sitharaman has already announced a Nuclear Energy Mission for Viksit Bharat, with a focus on law reforms and private participation. She also announced a Rs 20,000 crore allocation for research and development of Small Modular Reactors, with a goal to commission at least five indigenous SMRs by 2033.

NPCIL is expected to deliver around half of the 100 gigawatts target, while the rest will come from private and international players. While challenges such as high costs and safety concerns remain, the SHANTI Bill is seen as a major step toward energy security, climate action, and long-term economic growth for India.