Nuclear energy bill, SHANTI passed by the Parliament

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, has been passed by parliament on Thursday, despite demands from several Opposition parliamentarians for referring the legislation to a parliamentary panel, paving the way for private sector participation in nuclear energy which has so far remained strictly under state control. The bill was passed in Lok Sabha on Wednesday and Rajya Sabha also approved the bill on Thursday. Minister of State for Science and Technology Jitendra Singh introduced the bill earlier this week which seeks to repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act (CLNDA), 2010. This bill will support India’s energy demands and reduce fossil fuel dependence as it is closely linked to India’s long-term energy and climate goals.

Key Highlights of SHANTI Bill, 2025

1. Replacement of Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010: the SHANTI Bill will replace the existing nuclear laws and consolidate legal framework relating to nuclear laws for better governance.
2. Private sector participation: a major component of this bill is the entry of private sector to build, own, operate, and decommission nuclear power plants, which will end the monopoly of the Nuclear Power Corporation of India Limited (NPCIL) in operations.
3. Core areas under state control: the government has retained control over sensitive areas like nuclear fuel production, heavy water manufacturing, and radioactive waste management to safeguard the national security.
4. New institutional arrangements: the bill provides for the creation of an Atomic Energy Redressal Advisory Council, designation of Claims Commissioners, and a Nuclear Damage Claims Commission for cases involving severe nuclear damage, with the Appellate Tribunal for Electricity acting as the appellate authority.
5. Nuclear liability framework: nuclear plant operators alone are responsible for compensation, aligning India’s regime with international nuclear liability conventions. 
6. Equity share: the private companies will have 49% equity in nuclear power projects, with the government retaining majority shares with itself.

Comparison with existing laws

Aspect	Atomic Energy Act, 1962 & CLNDA, 2010	SHANTI Bill 2025
Sector Control	Complete government monopoly	Private participation allowed with government retaining major control
Private participation	Not permitted	Private sector now allowed up to 49% share holding.
Foreign Involvement	Not allowed	Foreign participation permitted through partnerships
Major technology	Large, indigenous and nuclear reactors	Small Modular Reactors (SMRs)
Investment Environment	Closed	Aligned with global practices

Challenges

1. Risk of nuclear accidents: it raises fears about safety and standards, the bill is being criticised for weak accountability in case of any nuclear mishap.
2. Public Trust: Public concerns persist regarding safety, displacement and environmental impact.
3. Commercial viability: long project timelines, high cost and uncertainty in tariff may discourage private investments.
4. Compensation issues: changes in nuclear liability regulations may raise concerns regarding the compensation to the victims after any accident.

Road Ahead

India should focus on strengthening the safety regulation by enhancing capacity and transparency of Atomic Energy Regulation Board (AERB). The victims must be protected with clear outlay of every provision. The government must promote SMRs improved grid stability and decarbonisation. It should ensure that there is no private monopoly or duopoly in the nuclear power sector to ensure fair competition among the companies.