India’s SHANTI Act and the Opening Up of Nuclear Power: Promise, Pitfalls, and the Road Ahead
Introduction
SHANTI Act 2025 India marks one of the most significant legislative shifts in India’s energy policy in decades. For UPSC aspirants, this is not just another bill — it signals a transformation in how India plans to meet its energy needs, balance economic growth with carbon commitments, and modernise its strategic sectors. As aspirants preparing for Prelims and Mains, you must grasp the implications of this Act not only for nuclear power but also for energy security, regulatory governance, and investment frameworks in India.
GS Paper Mapping
Relevant to:
- GS Paper 2: Governance and Policy Reforms
- GS Paper 3: Energy Security, Infrastructure, and Science & Technology
Why in the News?
In December 2025, the Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy Act, which replaces older laws like the Atomic Energy Act 1962 and the Civil Liability for Nuclear Damage Act 2010. This has opened up the civil nuclear sector for private participation under licenced regulatory oversight — a historic move after six decades of state monopoly.
Exam‑Ready
- New Legislation: Sustainable Harnessing and Advancement of Nuclear Energy Act (popularly the SHANTI Act 2025 India) has replaced outdated nuclear laws. World Nuclear News
- Private Sector Entry: For the first time, Indian private companies and select joint ventures can build, own, operate and decommission nuclear facilities. ETEnergyworld.com
- Foreign Investment: Up to 49% FDI allowed through joint ventures while retaining Indian control. ETEnergyworld.com
- Liability Reform: Tiered liability structure based on reactor capacity replaces the flat ₹1,500 crore cap. VISION IAS
- Capacity Target: Aims to scale nuclear capacity to 100 GW by 2047 as part of clean energy goals. VISION IAS
- Regulatory Strengthening: Atomic Energy Regulatory Board (AERB) gets statutory status. Press Information Bureau
- SMR & Innovation Push: Encourages advanced technologies like Small Modular Reactors (SMRs) and support for indigenous designs leading up to 2033. VISION IAS
Background
From History to Modernisation
For over 60 years, the Indian nuclear sector operated under the Atomic Energy Act, 1962, which largely restricted nuclear power generation to government entities such as NPCIL and DAE units. This was backed by the Civil Liability for Nuclear Damage Act, 2010 — a strict liability regime shaped by concerns from the Bhopal Gas tragedy and global safety norms.
Despite having robust indigenous PHWR technology, India’s nuclear capacity remained below 9 GW for decades — far less than its potential or needs. Policies in 2025 sought to change this structural bottleneck to scale investments and technology adoption.
What Exactly Is the SHANTI Act?
Objectives
- Energy Expansion: Ramp up nuclear share in energy mix aligned with India Net Zero 2070 goals.
- Private & Pvt‑Public Participation: Breaks state monopoly, allowing private entities to participate under a regulated regime.
- Regulatory Clarity: Single, unified law replacing older multiple acts for clearer compliance.
Key Provisions Explained
| Feature | Old Law | SHANTI Act 2025 India |
|---|---|---|
| Legal Framework | Multiple laws | Unified act |
| Private Sector | Not permitted | Permitted under licence |
| Liability Caps | Flat ₹1,500 crores | Tiered ₹100 – 3,000 crore |
| Regulator Status | Executive order | Statutory AERB |
| Foreign Role | Limited | JV permitted up to 49% |
Significance of the SHANTI Act
Strategic & Economic
- Energy Security: Nuclear energy provides reliable, large‑scale, round‑the‑clock power — crucial for industrial growth and demand stability.
- Decarbonisation: Supports India’s goal of clean energy and reduction of carbon emissions.
- Investment & Innovation: Private investment can speed up adoption of Indigenous SMR design 2033, boosting jobs and tech innovation.
🛡 Governance & Regulatory
- Modern Framework: AERB gets statutory authority, improving transparency and safety oversight.
- Liability Reform: Aligns India with global norms, potentially making the sector more attractive to investors.
Concerns and Criticisms (Balanced View)
While the Act opens opportunities, critics argue risks remain:
- Liability Caps: Some believe the caps may under‑compensate victims in severe accidents. Peoples Democracy
- Safety Oversight: Debate continues on whether the new regulatory framework is robust enough. Reddit
- Public Accountability: Issues like environmental impact assessments have been raised.
UPSC‑Oriented Practice Questions
Prelims MCQ
Q: Under the SHANTI Act 2025 India, which of the following is true about nuclear liability?
A. A flat liability cap of ₹1,500 crore remains unchanged
B. Liability cap varies with reactor size
C. Suppliers are solely liable for nuclear accidents
D. No liability applies to any entity
Correct Answer: B — Liability cap now varies based on reactor capacity.
Mains Question (2025/26)
“Critically examine how the SHANTI Act 2025 India could reshape India’s nuclear energy landscape. In your answer, assess the opportunities and risks associated with private sector participation and the implications for energy security.”
Final Notes for Aspirants
Understanding the SHANTI Act 2025 India is crucial for both Prelims and Mains. It intersects energy policy, governance reforms, industry regulation, and strategic planning — all vital for GS Papers 2 and 3.
Stay tuned for updated official gazette notifications and regulatory rules as these will be further tested in exams.
