The SHANTI Bill 2025: A Deep Dive into India’s Nuclear Energy Shift

The emergence of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, represents the most significant legislative reorganization of India’s atomic energy sector since the country’s independence. Passed by the Lok Sabha on December 17, 2025, and subsequently by the Rajya Sabha, this bill fundamentally alters a sixty-year-old governance model by repealing the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. The transition from a state-centric, closed-door monopoly to a regulated, multi-stakeholder framework is positioned as a mathematical necessity to bridge the gap between India’s burgeoning energy demands and its international climate commitments. As the nation targets a 100-gigawatt (GW) nuclear capacity by 2047 and Net Zero emissions by 2070, the SHANTI Bill serves as the legal and financial architecture required to mobilize nearly ₹20 lakh crore in private capital and integrate advanced modular technologies into the national grid.

The Anatomy and Core Objectives of the SHANTI Bill

The SHANTI Bill is a consolidated statute that seeks to modernize India's nuclear framework in line with contemporary technological and economic realities while maintaining the core principles of safety and national sovereignty. By replacing the archaic 1962 Act, the legislation expands the definition of atomic energy to the broader category of nuclear energy and ionizing radiation, thereby encompassing civilian applications in healthcare, agriculture, and industry that were previously hindered by rigid controls.

Defining the Legislative Scope

The bill creates a unified legal regime for licensing, safety, and liability. Historically, the nuclear sector was governed by the 1962 Act, which focused on state control and strategic substances, and the 2010 Act, which dealt specifically with compensation following a nuclear incident. The SHANTI Bill merges these concerns, institutionalizing a structure where the Central Government retains strategic oversight while delegating operational and developmental roles to a wider array of entities.

The Historical Evolution: From State Monopoly to Market Integration

The history of the SHANTI Bill is intrinsically tied to the evolution of the Indian state’s relationship with nuclear technology. In the immediate post-independence era, the Atomic Energy Act of 1948 established the initial foundation, which was subsequently replaced by the Atomic Energy Act of 1962 under the guidance of Prime Minister Jawaharlal Nehru and Dr. Homi J. Bhabha.

The Era of "Nuclear Apartheid" and Sovereignty

For decades, the 1962 Act served as a shield, ensuring that India’s nuclear research and fuel cycle remained under sovereign control, particularly as the nation faced international sanctions and "nuclear apartheid" following its 1974 and 1998 tests. This legislative environment effectively locked the sector into a public sector monopoly, where only the Nuclear Power Corporation of India Limited (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI) were authorized to operate reactors.

The 2010 Pivot and Liability Barriers

The next major evolution occurred with the Civil Liability for Nuclear Damage Act (CLNDA), 2010. This was a response to the India-U.S. Civil Nuclear Agreement, intended to open India to global technology. However, the inclusion of Section 17, which allowed operators to sue suppliers for defective equipment, became a major deterrent. Suppliers from the United States and France viewed this as an excessive risk, leading to a decade of industrial stasis where planned projects with foreign collaboration remained stalled.

The 2025 Catalyst: Modi 3.0 and Reform

The SHANTI Bill 2025 is the culmination of structural reforms initiated during the third term of Prime Minister Narendra Modi, characterized as Modi 3.0. This period, marked by the Year of Technology Absorption and Year of Reforms, sought to break the six-decade stalemate by recalibrating state control to allow for private infusion of capital and technology. The bill reflects a shift in national policy from viewing nuclear power as a purely strategic asset to treating it as a critical infrastructure pillar for a Viksit Bharat (Developed India).

The Parliamentary Storm: Controversy and Contestation

The introduction and passage of the SHANTI Bill were met with intense resistance from the opposition, primarily the INDIA bloc, who raised fundamental questions regarding safety, transparency, and accountability.

Allegations of "Oligarchisation" and Cronyism

A central point of contention in Parliament was the timing of the bill. Opposition leaders, including members of the Congress party and the Samajwadi Party, noted that the legislation was introduced shortly after major private conglomerates like the Adani Group publicly expressed interest in the nuclear sector. Critics alleged that the bill was designed to oligarchise nuclear energy, providing a free pass to private interests to profit from a sector that carries catastrophic risks for the public.

The "Bhopal Shadow" and Liability Caps

Parliamentary debates frequently invoked the 1984 Bhopal Gas Tragedy to illustrate the dangers of diluting supplier liability. Congress MP Manish Tewari argued that by removing the supplier liability provisions of the 2010 Act, the government was abandoning the consensus that protected Indian citizens from faulty foreign equipment. The opposition highlighted that the $410 million liability cap in the SHANTI Bill was effectively lower than the inflation-adjusted compensation for Bhopal, describing it as a paltry sum compared to the hundreds of billions of dollars required to remediate disasters like Fukushima or Chernobyl.

Transparency and the RTI Override

Another significant issue raised in the Rajya Sabha was the inclusion of Section 39, which allows the Central Government to declare any nuclear-related information as restricted. Transparency activists and opposition MPs argued that this provision effectively nukes the Right to Information (RTI) Act, allowing the government to hide data on plant design, safety audits, and radiation levels from public scrutiny.

Mechanism of Action: How the SHANTI Bill Works

If the SHANTI Bill functions as envisioned, it will fundamentally reorganize the production, regulation, and distribution of nuclear power in India. The bill's operational success relies on a dual-permit structure and a new financial ecosystem.

Licensing and Safety Authorization

Under the SHANTI framework, an entity must obtain a Central Government license to build or own a facility, and a separate Safety Authorization from the statutory AERB to operate it. This structural separation is designed to ensure that commercial or political pressure for energy generation does not compromise safety oversight. The AERB is empowered to conduct periodic audits, and licenses can be suspended or canceled for severe breaches of safety protocols.

Strategic Ring-Fencing

While the private sector is invited to build and operate reactors, the bill maintains strict state control over the sensitive portions of the nuclear fuel cycle.

• Uranium and Thorium Mining: Remains under government monitoring to prevent illegal extraction and ensure fuel security.

• Enrichment and Isotopic Separation: Strictly reserved for the Central Government to prevent proliferation risks.

• Spent Fuel and Reprocessing: Private operators must store spent fuel for a prescribed cooling period and then hand it over to the government for further management and plutonium extraction.

• Heavy Water Production: Exclusive to the state to maintain control over a strategic moderator.

The Financial and Dispute Resolution Ecosystem

The bill envisages the creation of a Nuclear Liability Fund, financed through levies on operators, to meet compensation obligations that exceed individual plant caps. For legal matters, an Atomic Energy Redressal Advisory Council and a dedicated tribunal will handle disputes, moving them away from the overburdened civil court system to ensure faster resolution for investors and victims alike.

Advantages to the People and the Nation

The proponents of the SHANTI Bill emphasize that its primary beneficiary will be the Indian citizen, who currently faces high electricity prices and grid instability.

Energy Security and Decarbonization

Nuclear energy provides a clean, non-intermittent baseload power source that complements variable solar and wind energy. By scaling to 100 GW, the bill aims to reduce India's reliance on fossil fuel imports and provide 24/7 electricity to stabilize industrial corridors and urban clusters. The deployment of Bharat Small Reactors (BSRs) as captive plants for energy-intensive industries like steel and aluminum can lower production costs and reduce the carbon footprint of the manufacturing sector.

Economic Multiplier and Job Creation

Mobilizing ₹15–20 lakh crore in private capital is expected to create a massive surge in demand for heavy engineering, electronics, and research. The construction of 200 Small Modular Reactors (SMRs) over the next two decades would generate thousands of high-skilled jobs for scientists, engineers, and safety professionals. Furthermore, the bill's support for non-power applications ensures that nuclear technology continues to benefit Indian farmers through food irradiation (increasing shelf life) and medical patients through indigenous radioisotope production for cancer treatment.

Global Standing and Technological Leadership

By aligning its liability framework with international norms, India aims to shed the last vestiges of its isolation from the global nuclear market. This allows for the import of advanced Light Water Reactor (LWR) technology from the U.S., France, and Russia while simultaneously positioning India as a global manufacturing hub for modular reactors that can be exported to other developing nations.

Disadvantages and Risks to Human Beings and Nature

Conversely, critics and civil society organizations warn of deep-seated risks that the SHANTI Bill may exacerbate, particularly concerning the marginalized and the environment.

Human Health and Social Risks

The hazardous nature of nuclear power means that even a low-probability event can have catastrophic consequences for human life.

• Radiation Exposure: Neighbors of nuclear facilities face potential long-term health risks from low-level radiation leaks or accidents. Critics point to the existing health concerns near the Koodankulam plant as a warning.

• Mass Displacement: Nuclear expansion requires significant land acquisition, often in coastal or remote areas, leading to the mass displacement of local communities and the collapse of traditional livelihoods such as fishing and agriculture.

• Justice Access Barriers: The bill restricts the ability of citizens or civil society groups to file criminal complaints for nuclear-related offenses, limiting this power to government-authorized officials. This narrows the path to justice for those affected by negligence or accidents.

Environmental Degradation and Nature

The environmental footprint of a privatized and expanded nuclear fuel cycle is a subject of significant concern for ecological experts.

• Nuclear Waste Management: The bill is criticized for lacking a legislated Nuclear Waste Fund for decommissioning and long-term storage, potentially leaving environmental hotspots that will burden future generations.

• Mining Impact: Privatizing uranium and thorium mining increases the risk of acid mine drainage into local aquifers, which can contaminate water sources for humans and wildlife for centuries.

• Ecological Thermal Pollution: Large reactors require vast amounts of water for cooling, often discharged back into the sea or rivers at higher temperatures, which can devastate local marine ecosystems and thermal-sensitive species.

Technology and Innovation: The Bharat SMR Revolution

A central pillar of the SHANTI Bill’s future outlook is the Bharat SMR (Small Modular Reactor) program led by BARC. Unlike traditional large-scale reactors (e.g., the 700 MW PHWRs), SMRs are designed to be safer, faster to build, and more flexible in their deployment.

The Technical Roadmap for SMRs

The Department of Atomic Energy (DAE) has allocated ₹20,000 crore to develop and deploy these reactors as part of the Nuclear Energy Mission for Viksit Bharat.

1. Bharat SMR-200: A 220 MW electrical reactor using pressurized heavy water technology. It is intended for industrial "captive" use, where a private company like Tata Power or Larsen & Toubro could operate the plant to power their own manufacturing hubs.

2. SMR-55: A 55 MW variant designed for remote locations and off-grid islands where traditional power lines are difficult to maintain.

3. High-Temperature Gas-Cooled Reactor (HTGR): A 5 MW thermal reactor designed specifically for green hydrogen production, helping India meet its goals under the National Green Hydrogen Mission.

The SHANTI Bill facilitates this by allowing private vendors to manufacture critical components - such as low alloy steel forgings and reactivity control mechanisms - previously reserved for the state. The goal is to operationalize at least five indigenously designed SMRs by 2033.

Specifications of India’s Indigenous Modular Fleet

The Future Outlook: If the SHANTI Bill Works

The long-term success of the SHANTI Bill would transform India into a global nuclear powerhouse, altering the geopolitics of energy in Asia.

The 2047 Vision: 100 Gigawatts

By 2047, the 100th anniversary of independence, the government envisions a grid where nuclear energy contributes a double-digit percentage of the nation's electricity, up from the current 3%. This would require the successful integration of foreign Light Water Reactors (LWRs) from Russia and the U.S. alongside hundreds of indigenous modular units.

A Global Manufacturing Hub

If the regulatory framework remains stable and the liability reforms are accepted by global insurers, India could emerge as a manufacturing alternative to China and Russia for modular nuclear technology. This would invigorate the Make in India initiative, with domestic giants like Godrej, L&T, and Walchandnagar Industries exporting reactor components and modular units to the global south.

The Net Zero 2070 Achievement

Nuclear energy is positioned as the third pillar alongside solar and wind for achieving Net Zero by 2070. Because nuclear provides reliable power during evening peak loads when solar is unavailable, it reduces the need for expensive battery storage systems and ensures the long-term sustainability of the national grid.

Conclusion: Synthesizing the "Peace" and the "Protest"

The SHANTI Bill, 2025, is aptly named as an acronym for the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India, yet its namesake - Shanthi (Peace) - remains elusive in the political and social spheres. The legislation represents a bold, structural break from the state-led models of the 20th century, acknowledging that the massive capital requirements of the 21st-century energy transition cannot be met by the public exchequer alone.

However, the bill's success will not be measured solely by the gigawatts it adds to the grid, but by its ability to resolve the inherent contradictions it has introduced. The removal of supplier liability and the capping of operator financial responsibility are significant incentives for private entry, but they create a moral hazard where the costs of failure are socialized while the rewards of success are privatized. Similarly, the statutory empowerment of the AERB is a progressive step, but it must be matched by a culture of transparency that resists the secrecy provisions of Section 39.

As India embarks on this historic expansion, the primary challenge for the government will be building public trust. A safety-first licensing regime, transparent engagement with local communities, and a robust mechanism for victim-centric safeguards are essential if nuclear energy is to truly transform India without causing irreparable harm to its people and its environment. The SHANTI Bill has opened the door; the quality of the governance that follows will determine whether India’s nuclear future is one of clean prosperity or a recipe for disaster.