The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill 2025 was introduced in Parliament on 15th December 2025. This Bill aims to incentivise private sector participation, both Indian and foreign, in nuclear power production. It does this by replacing India’s existing law the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010, with this new SHANTI Bill.
This Bill establishes an atomic energy regulatory structure accountable to Parliament, abolishes the Nuclear Power Corporation of India’s monopoly over operating nuclear plants, and limits the circumstances under which nuclear power plant operators can claim compensation from suppliers of equipment in the event of an accident. Simultaneously, it also buffers operators by introducing limits on the extent of liability, in case of violating the laws under the Act, based on the size of the plants they operate, and limits the maximum penalty on them to Rs 1 Cr, even in case of a severe breach.
The Bill proposes a revised and pragmatic civil liability framework for nuclear damages, confers statutory status on the Atomic Energy Regulatory Board (AERB) and strengthens mechanisms related to safety, security, safeguards, quality assurance, and emergency preparedness.
Privatising the nuclear power sector, which currently makes up 1.5% of India’s installed power capacity, and 3% of the electricity produced, has been on the NDA government’s agenda in recent years to boost clean energy production, improve grid stability, and move towards its 2070 net-zero (zero net-carbon emission)targets. This includes scaling-up the installed nuclear power to 100GW, up from current 8.8GW by 2047; a Rs 20,000 Cr mission announced in the Union Budget this year to develop ‘small modular reactors’ and a slew of customized 220 MW pressurized heavy water reactors (the Bharat Small Modular Reactors).
While the high costs of installing nuclear power plants, land acquisition, the disposal of used-up nuclear fuel, and apprehension of the fallout of nuclear accidents have retarded nuclear power expansion in India, investments in this sector has been conservative due to the potentially unlimited liability to plant operators and their partners in case of an accident.
The CNLD enables those affected by a nuclear accident to claim compensation from nuclear plant operator upto Rs 1,500 Cr and in theory involving the Centre upto Rs3,400 Cr (at current rates). These same laws also allow the plant operator to claim recourse from a supplier of the equipment under three instances, if (a) the supplier and operator have an explicit agreement, (b) the nuclear incident has proved to due to the suppliers’ or their equipment fault, and (c) the nuclear incident has resulted from deliberate intent to cause nuclear damage.
The SHANTI Bill, while repealing CNLD, even removes the word ‘supplier’ (which accidentally appeared only once in the CNLD), and removes the instances of supplier or their equipment being responsible for the accident as being grounds for operators to claim compensation. This has been one of the demands of foreign nuclear companies who have expressed interest in India.
As per Science and Technology Minister “ This is long overdue reform. The Bill gives hope for large-scale innovation in nuclear technology through amendments in patent laws, aligns with global liability conventions, and proposes the expansion of nuclear energy projects through private sector participation”.
The experts are of the opinion that this Bill is one step forward in terms of addressing concerns from foreign nuclear suppliers that have help up all contracts since 2010, but it still carries the ambiguity over liability. The SHANTI Bill penalizes the operators in case of nuclear accident, requiring them to compensate on the basis of size of the plants and not the damage experienced in itself. Installations with thermal power above 3600 MW can have operators pay upto Rs 3,000 Cr; between 1,500 MW and 3,600 MW upto Rs 1,500 Cr, and those lower down (150 MW) to Rs 100 Cr.
In 2010, the UPA 2 government under pressure amended CNLD which allowed for the jurisdiction of a civil court in certain cases of nuclear accidents. This led to protests from prospective nuclear suppliers, most notably the US’s Westinghouse and France’s Areva, both of whom have signed MOUs with India to construct nuclear plants, but did not eventually build them, for a number of reasons, including the liability issue. To date, only Russia supplies and operates a nuclear plant in India, in Kudankulam, under an agreement signed prior to CLND Act.
It is a fact that after 2010, no foreign supplier has signed a contract with India to supply and operate nuclear plant.
Controversies and Criticism of the SHANTI BILL
Opposition parties (including Congress and DMK) strongly criticized the Bill, describing it as reckless and dangerous
- Safety Concerns– Critics argued that diluting supplier liability reduces accountability and places the burden of potential accidents on the State.
- Lack of Transparency– The override of the RTI Act raised concerns about the institutionalization of secrecy in high-risk sector.
- Geopolitical Pressure– Some members of the opposition alleged the Bill was bulldozed to align India’s liability laws with international standards.
The Bill was passed by Lok Sabha on 17th December 2025, and approved by Rajya Sabha on 18th December 2025. On 20th December 2025, President Droupadi Murmu granted her assent, making it an ACT.
Anil Malik
Mumbai, India
23rd December 2025