Union Cabinet Clears SHANTI Bill to Open Nuclear Power Sector

Cabinet Approves SHANTI Bill to Reform India’s Nuclear Power Sector

The Union Cabinet has approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill , signalling a major shift in India’s civil nuclear policy. The proposed legislation seeks to open the nuclear power sector to private participation , a move seen as essential for meeting India’s ambitious target of 100 gigawatt nuclear capacity by 2047 and strengthening long-term energy security.

Private Entry With Strategic Safeguards

Under the SHANTI Bill, private companies will be permitted to participate in civil nuclear power generation under strict government supervision. However, the Department of Atomic Energy (DAE) will retain control over sensitive strategic functions such as nuclear fuel production, heavy water management and radioactive waste disposal. The reform aims to attract large-scale investment that cannot be met by public sector resources alone.

Legal and Investment Framework Reforms

A key element of the Bill is the overhaul of India’s civil nuclear liability regime , which has long discouraged private and foreign investors. The proposed changes seek to cap supplier liability and provide greater protection to plant operators. Operator insurance coverage is planned at ₹1,500 crore per incident through the Indian Nuclear Insurance Pool . The Bill also allows up to 49% foreign direct investment (FDI) and proposes a unified legal structure, including the establishment of a specialised nuclear tribunal .

Supporting Energy Transition Goals

Officials highlighted that the reforms align with rising energy demand from industry, digital infrastructure and data centres, as well as India’s net-zero target by 2070 . Nuclear energy is positioned as a reliable, low-carbon base-load source complementing renewables. The government has also announced a ₹20,000 crore Nuclear Energy Mission to develop Small Modular Reactors (SMRs) , with five indigenous units targeted by 2033 .

Regulatory and Industry Implications

Experts note that successful private participation will require independent regulation , including transparent tariff mechanisms. The Bill is expected to be tabled in Parliament during the winter session and could significantly reshape India’s civil nuclear ecosystem in line with global best practices.

Exam Oriented Facts

• India aims for 100 GW nuclear capacity by 2047 .

• SHANTI Bill permits up to 49% FDI in nuclear power.

• All existing reactors are operated by NPCIL .

• Small Modular Reactors (SMRs) suit industries and data centres.