The “SHANTI Bill, 2025” (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) is a recent Indian legislation highlighted by the to modernize India’s nuclear laws, enabling private sector involvement, strengthening regulation and promoting nuclear power for clean energy and security, with provisions for licensing, safety, and liability.
The Bill, 2025 replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. The 1962 Act provides for the development and use of atomic energy, and the 2010 Act provides a framework for assigning liability and compensation in case of a nuclear incident.
THE NUCLEAR VISION FOR 2047
The vision is to take the nuclear power sector to 100 GW by 2047. Today, we are close to 9 GW. The increase will make India a leading global player in the segment, and for that, we need an investment of over ₹19 lakh crore, and that is not clearly possible in the realm of the public sector.
Nuclear power contributed only around 3% of the electricity generated in India in 2024-25. The government has set a target to install 100 GW of nuclear capacity by 2047, including from at least five indigenous small modular reactors by 2033.
KEY ASPECTS OF THE SHANTI BILL, 2025:
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- Consolidated Framework: It brings together various aspects of nuclear development into a single, modern legal structure.
- Private Participation: Allows limited private sector entry into nuclear energy under strict regulatory control.
- Statutory AERB: Grants statutory recognition to the Atomic Energy Regulatory Board (AERB) for stronger oversight.
- Clean Energy Focus: Supports India’s goal of expanding nuclear power for clean energy and achieving 100 GW nuclear capacity by 2047.
- Enhanced Safety & Security: Strengthens regulatory measures for safety, security, and emergency preparedness.
- Revised Liability: Introduces a more practical civil liability framework for nuclear damage, including operator liability caps and government-backed funds.
- New Institutions: Proposes bodies like the Atomic Energy Redressal Advisory Council and Nuclear Damage Claims Commission.
COMPARATIVE EXPLANATION
| S. N. | EXHISTING PROVISIONS | NEW PROVISIONS UNDER THE BILL 2025 |
|---|---|---|
| Licence to non-government entities | The 1962 Act empowers the central government to grant licences only to a central government entity or government companies. | The Bill empowers the central government to also grant licences to: (i) any other company, except a company incorporated outside India, (ii) joint ventures between government entities and private companies and (iii) any other person expressly permitted by the central government. |
| Liability for nuclear damage | Under the 2010 Act, the operator of a nuclear installation is liable for any damage caused by a nuclear incident as per a no-fault principle. The operator’s liability is subject to a maximum amount and the central government bears any excess liability. Liability does not apply in specified cases such as a natural disaster. The Act also provides for appointment of a Commissioner or a Commission to adjudicate claims. The 2010 Act specifies a maximum liability of Rs 1,500 crore for a nuclear reactor with thermal power capacity of 10 megawatt or above. | The Bill retains these provisions. The Bill specifies a tiered structure, with liability limit ranging from Rs 100 crore to Rs 3,000 crore based on power capacity. |
| Operator’s right of recourse | The 2010 Act also gives operators a legal right to recover some or all of the compensation paid. This right could be exercised: (i) when such rights are provided in a contract, (ii) where the incident arises due to the supply of defective equipment or materials, and (iii) when the incident is caused by a deliberate act with the intent to cause damage. | The Bill removes the right to recourse on the ground of supply of defective equipment or materials. |
| Territorial jurisdiction for claims | Under the 2010 Act, compensation may be claimed for damages within India’s territory or its jurisdiction. | The Bill extends the coverage to nuclear damage in the territory of a foreign state from incidents in India, subject to certain conditions. |
| Atomic Energy Regulatory Board(AERB) | An executive body-less independent | The Bill provides statutory recognition to AERB-more independent It will consist of a chairperson, one whole-time member, and up to seven part-time members appointed by the central government. Appointments by the central government upon recommendations of a search-cum-selection committee. The committee will be constituted by the Atomic Energy Commission and will include the Chairperson of the Board in case of selection of its members. Term-three years, further extendable up to three years. |
| Atomic Energy Redressal Advisory Council | No such body | The Bill establishes the Atomic Energy Redressal Advisory Council to hear appeals against the orders or decisions of the central government or AERB. The Chairperson of the Atomic Energy Commission will chair this Council. Other members of the Council include: (i) Director of Bhabha Atomic Research Centre, (ii) Chairperson of AERB, and (iii) Chairperson of the Central Electricity Authority. Appeals against the decisions of the Council will lie before the Appellate Tribunal for Electricity. |
Other features:
1. Enhanced Safety, Security, and Safeguards: Improves systems for security, safeguards, quality assurance, and coordinated emergency preparedness and response.
2. Central Government Acquisition Rights: Vests exclusive acquisition rights with the Central Government in specific cases related to nuclear activities.
3. Dispute Redressal Mechanism: Establishes an Atomic Energy Redressal Advisory Council to facilitate the redressal of disputes.
4. Appellate Tribunal Provision: The Appellate Tribunal for Electricity, set up under the Electricity Act, 2003, will serve as the appellate authority, empowered to hear appeals under provisions of the bill and any additional matters as notified by the Central Government.
5. Claims Commissioner Appointment: Empowers the Central Government to appoint Claims Commissioners for adjudicating compensation claims related to nuclear damage.
6. Nuclear Damage Claims Commission: Provides for a dedicated Commission to handle cases involving severe nuclear damage and ensure timely adjudication.
7. Safeguards and Strategic Oversight: At the core of the bill lies a strong emphasis on maintaining India’s strategic control over its nuclear ecosystem. Even as the sector opens up to private participation, the Bill ensures that critical functions remain firmly under sovereign oversight.
8. Control of Sensitive Domains: The Government retains exclusive authority over the nuclear fuel cycle, waste management, and all security-related operations.
9. Regulatory Strengthening: The reforms reinforce safety standards and enhance India’s nuclear governance framework for future expansion.
10. Protection of Strategic Autonomy: The nuclear energy sector in the bill is structured in a way that does not compromise national security or India’s independent decision-making.
11. Coordinated Oversight Mechanisms: Enhanced safeguards and monitoring systems ensure consistent compliance across all nuclear activities.
Criticisms
The Bill’s liability and governance provisions warrant caution.
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- The maximum operator liability for a nuclear incident is ₹3,000 crore. The Centre is liable for nuclear damage beyond the operator’s cap and can also assume full liability for a non-government installation if in the public interest. These choices make investment risk easier to price but also ask whether the capped operator amount is adequate for victims and for environmental remediation.
- Second, SHANTI requires operators to maintain insurance or other financial security, but exempts the Centre’s nuclear installations, rendering clear public accounting very important.
- It also allows operator recourse only when expressly provided in a written contract or when an incident is due to an act or an omission with the intent to cause nuclear damage. This makes supplier accountability depend largely on what the operator secures by contract, which means how much recourse the operator has against suppliers can vary across projects.
- India’s nuclear governance needs to address its regulator’s independence. While SHANTI creates a statutory framework, it also vests significant influence in appointments with the Centre and the Atomic Energy Commission. This is still not conducive to increasing public trust and may also deter investor confidence.
CONCLUSION
By modernising the legal framework and strengthening institutional oversight, it creates the foundation for a more efficient, innovative, and secure nuclear ecosystem. The Bill supports India’s long-term vision of expanding clean, reliable energy while ensuring that strategic interests remain fully protected. As the country moves toward greater energy independence and technological advancement, this legislation can play a defining role in driving the growth of India’s nuclear power and broader energy landscape.
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