The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, was tabled by the Minister of State for Science and Technology and Earth Sciences, Jitendra Singh, in the Lok Sabha on December 15, 2025, and was passed by the Lok Sabha on December 17, 2025. The Rajya Sabha also passed it on December 18, 2025, and it became an act after receiving the president’s assent on December 20, 2025. The act was notified and came into effect on December 21, 2025. This act replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010.
The SHANTI Act, 2025, represents a significant legislative milestone in India’s long nuclear journey. Enacted at a time when the country is reimagining its energy landscape, the act consolidates and modernises the legal framework governing nuclear energy. It brings together provisions relating to promotion, development, regulation, safety, security, safeguards, and liability within a single, comprehensive structure. The act reflects India’s intent to align its nuclear governance with present realities and future energy requirements, while supporting the long-term objective of achieving 100 gigawatts of nuclear energy capacity by 2047.
Nuclear Energy and its Role in India’s Energy Transition
Nuclear energy involves the use of controlled atomic reactions to produce power. Through the process of fission, large amounts of heat are released, which are then used to generate electricity without producing greenhouse gas emissions. Globally, nuclear energy is valued as a clean and dependable source that complements renewable options, such as solar and wind. For India, nuclear power has maintained a steady presence in the electricity mix, accounting for around three per cent of total electricity generation, with a share of 3.1 per cent in 2024–25, and supporting round-the-clock, low-carbon energy supply.
The present installed nuclear capacity stands at 8.78 gigawatts. With indigenous 700 megawatt and 1,000 megawatt reactors being developed, including through international cooperation, capacity is projected to rise to 22.38 gigawatts by 2031–32. Looking further ahead, the government has announced a Nuclear Energy Mission to achieve 100 gigawatts by 2047, aligning nuclear expansion with clean energy goals and long-term decarbonisation target for 2070.
Evolution of India’s Nuclear Legal Framework
India’s nuclear programme has evolved through a series of legislative milestones that ensured the peaceful use of atomic energy while safeguarding national interests. The Atomic Energy Act, 1962 replaced the earlier 1948 law and laid the foundation for the nuclear programme. It empowered the central government to regulate atomic energy for peaceful purposes and ensured strict control over research, development, and use of nuclear materials.
Subsequent amendments in 1986, 1987, and 2015 gradually opened the sector beyond the central government, allowing government companies and joint ventures to participate in nuclear power generation, while retaining strategic oversight. In 2010, the Civil Liability for Nuclear Damage Act introduced a no-fault liability regime to ensure compensation to victims of nuclear incidents and to build public trust through safety and accountability.
However, the liability and supplier recourse provisions of existing laws were seen as barriers to investment and foreign participation, contributing to industry reluctance to enter India’s nuclear market. The SHANTI Act, 2025 emerges as a response to these limitations, providing a unified and modern legal framework that balances safety, sovereign control, and market-enabling provisions.
Rationale and Objectives of the SHANTI Act, 2025
At the current state of India’s energy transition, the need for a comprehensive and modern nuclear legislation has become evident. Growing energy demands, clean energy commitments, and the requirement for stable and reliable power for emerging applications have highlighted the limitations of the earlier legal framework. Existing laws did not provide the flexibility or speed required to scale nuclear power to meet national targets.
The SHANTI Act, 2025, seeks to harness India’s nuclear resources more fully, enable active participation of both public and private sectors, and position India as a contributor to the global nuclear energy ecosystem. It aims to remove ambiguities related to licensing, liability, and jurisdiction, while strengthening regulatory oversight and safety systems. By integrating innovation with security and safeguards, the act serves as a natural progression of India’s evolving nuclear journey.
Some Highlights of the Act
Licensing Regime and Entry into the Nuclear Sector: A defining feature of the SHANTI Act, 2025, is the introduction of the comprehensive licensing regime for nuclear facilities and activities. Under the earlier framework, nuclear power generation was effectively restricted to the union government and government-controlled entities. The new act permits central government departments and institutions, government companies, any other company (private) incorporated in India, joint ventures among permitted entities and any other person expressly permitted by the union government by notification.
Licensed activities include constructing, owning, operating, and decommissioning nuclear power plants or reactors, as well as related activities, such as fabrication of nuclear fuel, transportation and storage of nuclear fuel or spent fuel and import and export of nuclear fuel, prescribed equipment and nuclear-related technology or software. Where activities involve potential radiation exposure, a separate safety authorisation from the Atomic Energy Regulatory Board is mandatory.
Private companies incorporated outside India are not permitted to operate under the act. Foreign investment is required to be routed through companies incorporated under Indian law, ensuring that participation remains within a regulated domestic framework.
Sovereign Control over Strategic and Sensitive Activities: While enabling wider participation, the SHANTI Act, 2025, draws a clear boundary around strategic and safety-sensitive domains. Certain activities are reserved exclusively for the union government or its wholly owned institutions. These include uranium enrichment or isotopic separation; management of spent fuel, such as reprocessing, recycling, and high-level waste handling; and production and upgradation of heavy water, unless otherwise notified.
The act ensures continued governmental supervision over nuclear materials and safety-critical aspects. Source material and fissile material remain under surveillance and accounting control of the union government. Spent fuel is required to be stored safely for a prescribed cooling period before delivery to the government for subsequent management. Heavy water used in nuclear facilities remains under government supervision and must be returned after intended use.
Upstream activities related to uranium and thorium are also placed firmly under sovereign ownership. Exploration, mining, and decommissioning of mines containing uranium and thorium could be carried out only by the union government or its controlled entities and all extracted material vests in the union government.
Regulation of Non-Power Applications and Research: The ambit of the SHANTI Act, 2025, extends beyond power generation to include the application of nuclear and radiation technologies in health care, food, water, agriculture, industry, and research. The objective is to provide a clearer and more predictable regulatory environment for peaceful uses of nuclear technology.
A significant departure from earlier law is the exemption for research, development, design, and innovation-related activities. Except for activities reserved exclusively for the union government or those having national security implications, such work may be carried out without a licence, provided adequate safety and security is ensured. This relaxation is intended to promote research and innovation by universities, research institutions, and private enterprises.
Civil Liability Framework and Operator Liability: The SHANTI Act, 2025, introduces a practical and balanced civil liability regime for nuclear damage. It retains the no-fault liability principle, ensuring that operators are liable to compensate victims regardless of negligence. The overall incident cap of 300 million special drawing rights (SDRs) is retained, with residual liability beyond the operator’s cap placed on the union government.
A major reform lies in the adoption of a graded liability structure. Instead of a single statutory cap, operator liability limits are specified in the Second Schedule and vary according to the type and characteristics of the nuclear installation. Liability ranges from Rs 100 crore for smaller reactors, certain fuel cycle facilities and transportation activities, to Rs 3,000 crore for large reactors above 3,600 megawatts. This differentiated approach aligns liability exposure with the scale and risk profile of installations.
Operators are exempt from liability in cases of grave natural disasters of an exceptional character, acts or armed conflict, hostility, civil war, insurrection or terrorism and for damage to installations or property on the same site or to the means of transport involved at the time of the incident.
Overall liability beyond operator caps remains with the union government, which also benefits from India’s participation in the Convention on Supplementary Compensation for Nuclear Damage (CSC) pool for international compensation in the event of a nuclear incident.
Supplier Liability and Right of Recourse: Under the earlier liability regime, operators had a broad statutory right of recourse against suppliers in cases involving defective equipment or sub-standard services. This provision was widely seen as exposing suppliers to long-term and uncertain liability risks.
The SHANTI Act, 2025, restricts the operator’s right of recourse to suppliers to two limited circumstances: where such right is expressly provided for in a written contract and where the nuclear incident results from an individual’s intentional act to cause nuclear damage. There is no standalone statutory right of recourse against suppliers. By removing recourse on the ground of defective equipment, the act shifts supplier liability back into the contractual domain, bringing greater predictability and aligning the framework with international practice.
Nuclear Damage and Claims Mechanism: The SHANTI Act, 2025, defines ‘nuclear damage’ broadly to include injury, loss of life, health impacts, and property damage resulting from a nuclear incident involving a nuclear installation or transported nuclear material.
The Nuclear Damage Claims Commission (NDCC), established under the act, is designed to be non-adversarial and accessible, able to engage specialists to consider technical questions relating to radiation exposure, environmental contamination, and causation, guided by principles of natural justice rather than strict civil procedure.
Institutional Architecture and Regulatory Strengthening: A cornerstone of the SHANTI Act, 2025, is the statutory recognition of the Atomic Energy Regulatory Board (AERB). Previously functioning under executive authority, the Board is now accorded independent statutory status. It is tasked with ensuring the safe use of radiation and nuclear energy and is composed of a chairperson, one whole-time member, and up to seven part-time members. Appointments to AERB would be made by the central government upon recommendations of a search-cum-selection.
The act establishes the Atomic Energy Redressal Advisory Council to facilitate dispute resolution and hear appeals against orders of the union government or the AERB. It also provides for the appointment of claims commissioners and the creation of an NDCC for cases involving severe nuclear damage. The Appellate Tribunal for Electricity serves as the appellate authority, creating a clear, multi-tiered dispute resolution framework that did not exist previously.
Enforcement, Penalties, and Transparency: The SHANTI Act, 2025, introduces a structured preliminary investigation mechanism prior to enforcement actions. Violations are categorised as severe, major, moderate, or minor, with a graded monetary penalty regime replacing earlier provisions that relied primarily on imprisonment and small fines. Maximum penalties now extend up to rupees one crore for severe breaches.
Additionally, the act contains provisions on secrecy and disclosure of information. Certain information may be declared restricted, covering aspects, such as location, quality, and quantity of prescribed substances and details relating to design, construction, and operation of nuclear facilities. Information notified as restricted is excluded from disclosure under the Right to Information Act, reflecting the act’s emphasis on strategic and security considerations.
Way forward
The SHANTI Act, 2025, marks a decisive shift in India’s nuclear governance. By consolidating and modernising the legal framework, enabling regulated private participation, refining liability norms and strengthening institutional oversight, it lays the foundation for a more efficient, innovative, and secure nuclear ecosystem. At the same time, it preserves sovereign control over strategic and safety-sensitive domains, ensuring that expansion does not compromise national security or public interest.
As India moves towards greater energy independence, clean energy leadership, and technological advancement, the SHANTI Act, 2025, provides the legal and institutional architecture necessary to transform nuclear energy into a central pillar of the country’s long-term energy strategy.
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