Cabinet clears path for private entry into civil nuclear sector with approval of SHANTI Bill
New Delhi, December 13. The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a key nuclear energy Bill aimed at opening India’s civil nuclear power sector to private participation, according to media reports. The move marks a significant policy shift as the government seeks to rapidly expand nuclear capacity to meet long-term energy and climate goals.
The proposed legislation, titled the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Bill, is expected to enable amendments to two core laws – the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage (CLND) Act, 2010. These changes are intended to address long-standing concerns that have discouraged private companies, including foreign technology and equipment suppliers, from investing in India’s nuclear power programme.
The reforms form part of the government’s strategy to achieve 100 GW of nuclear power capacity by 2047, a target aligned with India’s broader energy transition roadmap. The amendments are also aimed at facilitating the rollout of the Nuclear Energy Mission, announced by Finance Minister Nirmala Sitharaman in the Union Budget earlier this year.
The SHANTI Bill has already been listed on the legislative agenda of the ongoing session of Parliament. Union Minister Jitendra Singh had informed Parliament last week that the Bill was at an advanced stage of drafting, with final inputs from various ministries being incorporated.
A high-level government panel, in a report submitted in June, had flagged the limitations of the existing legal framework, noting that the Atomic Energy Act currently bars private companies – and even state governments – from participating in nuclear power generation. The panel said such restrictions would make it difficult to mobilise the scale of technical expertise and financial resources required to reach the 100 GW target within the stipulated timeframe.
While private participation is expected to improve access to capital and enhance construction efficiency for nuclear projects, potential investors and suppliers have remained wary of the liability regime under the CLND Act. Industry concerns centre on uncertainty over the extent of supplier liability in the event of a nuclear incident.
The panel had recommended allowing licensed private companies – not just central public sector enterprises – to operate nuclear power plants and undertake fuel cycle activities. It also suggested that the government step back from direct tariff regulation of nuclear projects to make the sector more attractive to investors.
On liability reform, the government has been examining options such as capping supplier liability and narrowing the definition of “supplier” to cover only providers of critical equipment. Beyond power generation, the proposed legislative changes could also open up related areas such as exploration and mining of critical minerals and nuclear fuel fabrication.
