SHANTI Act 2025: Opening India’s Nuclear Power to Private Players to Reach 100 GW by 2047

The 2025‑26 Budget introduced the <span class="key-term" data-definition="Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act — a 2025 legislation that opens India’s nuclear power sector to private participation and revises liability rules (GS2: Polity)">SHANTI Act, aiming to boost installed nuclear capacity from 8.2 GW to 100 GW by 2047. Achieving this requires private investment, indigenisation of reactor designs, development of <span class="key-term" data-definition="Small Modular Reactors — compact nuclear reactors (typically < 300 MW) that can be factory‑built and deployed faster, crucial for decentralised power and UPSC energy security topics (GS3: Economy)">SMRs, and a robust regulatory framework.

Background In the 2025‑26 Budget , Finance Minister Nirmala Sitharaman announced an ambitious target: raise India’s installed nuclear capacity from 8,180 MW to 100 GW by 2047 . To realise this, the government fast‑tracked the SHANTI Act , which repealed the 1962 Atomic Energy Act and the 2010 CLNDA . Key Developments (December 2025) Private companies can now build, own and operate nuclear power plants. The AERB gains statutory status, enhancing oversight. Liability framework revised to attract domestic and foreign investors. Repeal of the 1962 Atomic Energy Act and 2010 CLNDA . Important Facts • As of June 2025, India’s total generation capacity stood at 476 GW , with 50 % non‑fossil (renewables 227 GW + nuclear 8.8 GW). • Renewable generation contributed 403 TWh (22 % of total 1,824 TWh), while thermal (coal) supplied 75 % of electricity. • Nuclear’s share was only 3 % of generation despite 1.8 % of capacity, reflecting its baseload role. • To meet the Viksit Bharat goal, total capacity must exceed 2,000 GW . • Current nuclear fleet: 24 plants (NPCIL) totalling 8,780 MW . Designs include PHWR (220‑700 MW), BWR , and Russian VVERs. UPSC Relevance The shift from a state‑monopoly to a mixed‑ownership model touches on GS2: Polity (legislative reforms, regulatory autonomy) and GS3: Economy (energy security, investment climate, net‑zero commitments). Understanding the liability changes and the role of the AERB is crucial for questions on governance of strategic sectors. The nuclear‑energy push also links to climate‑change targets (net‑zero by 2070) and the broader energy‑mix strategy, a frequent GS3 theme. Way Forward Indigenise foreign designs (EDF, Westinghouse) to achieve cost parity with China’s reactors. Accelerate R&D for SMRs , especially molten‑salt and thorium‑based concepts. Develop financing models that balance high upfront capital with low‑cost long‑term operation (e.g., public‑private partnerships, sovereign guarantees). Revise exclusion‑zone rules to allow single‑unit captive reactors for industries with high power demand. Finalize tariffs, fuel‑ownership, waste‑management and insurance frameworks to provide regulatory certainty. Only with clear rules, robust financing and a domestic supply chain can the SHANTI Act deliver the promised 100 GW nuclear capacity and support India’s Viksit Bharat and net‑zero aspirations.

<h2>Background</h2> In the 2025‑26 Budget, Finance Minister Nirmala Sitharaman announced an ambitious target: raise India’s installed nuclear capacity from 8,180 MW to 100 GW by 2047. To realise this, the government fast‑tracked the <span class="key-term" data-definition="Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act — a 2025 legislation that opens India’s nuclear power sector to private participation and revises liability rules (GS2: Polity)">SHANTI Act, which repealed the 1962 <span class="key-term" data-definition="Atomic Energy Act — the original law governing all nuclear activities in India, placing them under the exclusive control of the Department of Atomic Energy (GS2: Polity)">Atomic Energy Act and the 2010 CLNDA. <h3>Key Developments (December 2025)</h3> <ul> <li>Private companies can now build, own and operate nuclear power plants.</li> <li>The AERB gains statutory status, enhancing oversight.</li> <li>Liability framework revised to attract domestic and foreign investors.</li> <li>Repeal of the 1962 <span class="key-term" data-definition="Atomic Energy Act — the original law governing all nuclear activities in India, placing them under the exclusive control of the Department of Atomic Energy (GS2: Polity)">Atomic Energy Act and 2010 CLNDA.</li> </ul> <h3>Important Facts</h3> • As of June 2025, India’s total generation capacity stood at 476 GW, with 50 % non‑fossil (renewables 227 GW + nuclear 8.8 GW). • Renewable generation contributed 403 TWh (22 % of total 1,824 TWh), while thermal (coal) supplied 75 % of electricity. • Nuclear’s share was only 3 % of generation despite 1.8 % of capacity, reflecting its baseload role. • To meet the Viksit Bharat goal, total capacity must exceed 2,000 GW. • Current nuclear fleet: 24 plants (NPCIL) totalling 8,780 MW. Designs include PHWR (220‑700 MW), BWR, and Russian VVERs. <h3>UPSC Relevance</h3> The shift from a state‑monopoly to a mixed‑ownership model touches on GS2: Polity (legislative reforms, regulatory autonomy) and GS3: Economy (energy security, investment climate, net‑zero commitments). Understanding the liability changes and the role of the AERB is crucial for questions on governance of strategic sectors. The nuclear‑energy push also links to climate‑change targets (net‑zero by 2070) and the broader energy‑mix strategy, a frequent GS3 theme. <h3>Way Forward</h3> <ul> <li>Indigenise foreign designs (EDF, Westinghouse) to achieve cost parity with China’s <$2 million/MW> reactors.</li> <li>Accelerate R&D for <span class="key-term" data-definition="Small Modular Reactors — compact nuclear reactors (typically < 300 MW) that can be factory‑built and deployed faster, crucial for decentralised power and UPSC energy security topics (GS3: Economy)">SMRs, especially molten‑salt and thorium‑based concepts.</li> <li>Develop financing models that balance high upfront capital with low‑cost long‑term operation (e.g., public‑private partnerships, sovereign guarantees).</li> <li>Revise exclusion‑zone rules to allow single‑unit captive reactors for industries with high power demand.</li> <li>Finalize tariffs, fuel‑ownership, waste‑management and insurance frameworks to provide regulatory certainty.</li> </ul> Only with clear rules, robust financing and a domestic supply chain can the <span class="key-term" data-definition="Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act — a 2025 legislation that opens India’s nuclear power sector to private participation and revises liability rules (GS2: Polity)">SHANTI Act deliver the promised 100 GW nuclear capacity and support India’s Viksit Bharat and net‑zero aspirations.

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