Parliament passes the SHANTI Bill, ending India’s nuclear power monopoly and allowing private companies to build and operate nuclear plants.
Key Highlights
- Parliament has passed the SHANTI Bill, 2025, opening India’s nuclear energy sector to private players.
- The bill ends the six-decade monopoly of the Nuclear Power Corporation of India Limited (NPCIL).
- Operator liability is capped at ₹3,000 crore, while supplier liability has been removed.
- India aims to expand nuclear power capacity from 8.9 GW to 100 GW by 2047.
- The legislation awaits President Droupadi Murmu’s assent to become law.
In a historic legislative decision, Parliament on Thursday passed the Sustainable Harnessing and Advancement of Nuclear Technology for India (SHANTI) Bill, 2025, formally opening India’s nuclear energy sector to private companies for the first time. The passage of the SHANTI Bill marks a decisive end to the state monopoly that has governed nuclear power generation in India for more than six decades.
The Rajya Sabha cleared the SHANTI Bill through a voice vote, a day after it was passed by the Lok Sabha amid heated debates and opposition protests. With parliamentary approval secured, the bill now awaits President Droupadi Murmu’s assent before becoming law.
The government has described the SHANTI Bill as one of the most significant structural reforms in India’s energy policy, positioning nuclear power as a critical pillar of the country’s long-term clean energy transition.
Private Entry Ends State Monopoly in Nuclear Power
The SHANTI Bill repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, replacing them with a new framework that allows domestic and foreign private companies to build, own, and operate nuclear power plants in India. Until now, only the state-run Nuclear Power Corporation of India Limited was permitted to develop and manage nuclear facilities.
Minister of State for Atomic Energy Dr. Jitendra Singh termed the SHANTI Bill a “transformational reform” that would unlock nuclear energy’s potential as a stable and clean source of power. Addressing Parliament, Singh said nuclear energy provides round-the-clock baseload power, unlike renewable sources such as solar and wind, which are intermittent by nature.
He emphasized that rising electricity demand from artificial intelligence, data centers, green manufacturing, and electric mobility will require dependable power sources.
According to official data, India currently generates about 8.9 gigawatts of nuclear power, a small share of its total installed capacity. The government has set an ambitious target of expanding nuclear capacity to 100 gigawatts by 2047 as part of India’s clean energy roadmap.
Major Indian conglomerates, including Tata Power, Adani Power, and Reliance Industries, have expressed early interest in the nuclear sector following the passage of the SHANTI Bill. Global nuclear technology leaders such as Westinghouse from the United States and EDF of France are also expected to explore partnerships and joint ventures under the new regime.
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Opposition Raises Liability and Safety Concerns
The SHANTI Bill faced strong resistance from opposition parties, including the Congress, Trinamool Congress, and Left groups, who raised concerns over nuclear safety and liability dilution. Critics argued that the revised liability framework weakens safeguards put in place after global disasters such as Bhopal and Fukushima.
Senior Congress leader Jairam Ramesh accused the government of rushing the SHANTI Bill without adequate scrutiny and demanded that it be referred to a parliamentary standing committee. The demand was rejected, allowing the bill to proceed to passage.
Under the new law, operator liability for large nuclear reactors is capped at ₹3,000 crore, while supplier liability has been removed entirely. The government has stated that this aligns India’s nuclear liability regime with international conventions, making the sector more attractive to investors.
Defending the provisions, Dr. Singh said the SHANTI Bill establishes a government-managed Nuclear Liability Fund to ensure compensation mechanisms remain intact. He also highlighted the government’s increased spending on nuclear safety, noting that the Department of Atomic Energy’s budget has risen from ₹13,879 crore in 2014 to ₹37,483 crore in 2025.
SHANTI Bill Seen as Boost to Clean Energy Goals
Prime Minister Narendra Modi hailed the passage of the SHANTI Bill as a “monumental step” toward achieving India’s clean energy and energy independence goals. In a message posted on social media platform X, the Prime Minister said private sector participation would accelerate innovation, create jobs, and ensure sustainable power delivery.
The passing of the SHANTI Bill by both Houses of Parliament marks a transformational moment for our technology landscape. My gratitude to MPs who have supported its passage. From safely powering AI to enabling green manufacturing, it delivers a decisive boost to a clean-energy…
— Narendra Modi (@narendramodi) December 18, 2025
Energy experts have described the SHANTI Bill as the most consequential reform in India’s nuclear sector since the program’s inception. Analysts believe the legislation could attract billions of dollars in private investment, reduce dependence on fossil fuel imports, and support India’s commitment to achieving net-zero emissions by 2070.
However, experts have also cautioned that effective implementation, transparent regulation, and strict safety oversight will be essential to maintain public trust and ensure sustainable growth of nuclear power in India under the new framework.
