<p>India has taken a historic step by allowing private firms to operate nuclear power plants under the newly enacted <span class="key-term" data-definition="Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 — legislation to allow private participation in nuclear power and attract foreign investment; relevant to GS3: Economy and GS2: Polity">SHANTI Act</span>. The move aims to boost the country's <span class="key-term" data-definition="Installed nuclear power capacity — total generating capacity of nuclear reactors operational in a country; a key metric for energy security (GS3: Economy)">installed nuclear power capacity</span> from the current 8.7 GW to <strong>100 GW by 2047</strong>. Former regulators and policy veterans stress that nuclear projects demand a “lifetime commitment” and robust <span class="key-term" data-definition="Financial security — the ability to meet long‑term obligations, especially for costly activities like waste handling and plant closure (GS3: Economy)">financial security</span> to cover <span class="key-term" data-definition="Waste management — handling, treatment and disposal of radioactive waste to protect health and environment; a critical issue in nuclear policy (GS3: Environment/Energy)">waste management</span>, settlement of radiation‑related claims, and <span class="key-term" data-definition="Decommissioning — the process of safely shutting down a nuclear power plant after its operational life, including dismantling and site remediation (GS3: Environment/Energy)">decommissioning</span>.</p>
<h3>Key Developments</h3>
<ul>
<li>Parliament passed the <strong>SHANTI Act, 2025</strong>, opening nuclear generation to private sector participation.</li>
<li>The policy encourages <span class="key-term" data-definition="Private participation — involvement of private sector firms in activities traditionally run by the government; significant for liberalisation and public‑private partnership (GS2: Polity)">private participation</span> and the inflow of <span class="key-term" data-definition="Foreign funds — capital inflows from overseas investors or institutions; important for financing large‑scale infrastructure (GS3: Economy)">foreign funds</span> for plant construction and operation.</li>
<li>Regulators emphasise a “lifetime commitment” to ensure long‑term <span class="key-term" data-definition="Financial security — the ability to meet long‑term obligations, especially for costly activities like waste handling and plant closure (GS3: Economy)">financial security</span> for waste disposal, claim settlements and plant <span class="key-term" data-definition="Decommissioning — the process of safely shutting down a nuclear power plant after its operational life, including dismantling and site remediation (GS3: Environment/Energy)">decommissioning</span>.</li>
</ul>
<h3>Important Facts</h3>
<ul>
<li>Current <span class="key-term" data-definition="Installed nuclear power capacity — total generating capacity of nuclear reactors operational in a country; a key metric for energy security (GS3: Economy)">installed nuclear power capacity</span>: <strong>8.7 GW</strong>.</li>
<li>Target for 2047: <strong>100 GW</strong>, a more than ten‑fold increase.</li>
<li>The act authorises private entities to set up, operate and maintain nuclear reactors, subject to stringent safety norms.</li>
<li>Financial guarantees will be mandatory to cover long‑term liabilities such as <span class="key-term" data-definition="Waste management — handling, treatment and disposal of radioactive waste to protect health and environment; a critical issue in nuclear policy (GS3: Environment/Energy)">waste management</span> and <span class="key-term" data-definition="Decommissioning — the process of safely shutting down a nuclear power plant after its operational life, including dismantling and site remediation (GS3: Environment/Energy)">decommissioning</span>.</li>
</ul>
<h3>UPSC Relevance</h3>
<p>The policy touches upon multiple GS papers. <strong>GS2 (Polity)</strong> examines the legislative process, the role of the Parliament and regulatory bodies in authorising private participation in a strategic sector. <strong>GS3 (Economy)</strong> analyses the impact of attracting <span class="key-term" data-definition="Foreign funds — capital inflows from overseas investors or institutions; important for financing large‑scale infrastructure (GS3: Economy)">foreign funds</span> and the financial guarantees required for long‑term liabilities. <strong>GS3 (Environment/Energy)</strong> requires understanding of nuclear safety, <span class="key-term" data-definition="Waste management — handling, treatment and disposal of radioactive waste to protect health and environment; a critical issue in nuclear policy (GS3: Environment/Energy)">waste management</span>, and <span class="key-term" data-definition="Decommissioning — the process of safely shutting down a nuclear power plant after its operational life, including dismantling and site remediation (GS3: Environment/Energy)">decommissioning</span>. The move also aligns with India’s energy security and climate commitments, topics frequently asked in the exam.</p>
<h3>Way Forward</h3>
<p>Effective implementation will need a robust regulatory framework that balances safety with commercial incentives. The government must set clear guidelines for <span class="key-term" data-definition="Private participation — involvement of private sector firms in activities traditionally run by the government; significant for liberalisation and public‑private partnership (GS2: Polity)">private participation</span>, ensure transparent allocation of <span class="key-term" data-definition="Foreign funds — capital inflows from overseas investors or institutions; important for financing large‑scale infrastructure (GS3: Economy)">foreign funds</span>, and enforce strict <span class="key-term" data-definition="Waste management — handling, treatment and disposal of radioactive waste to protect health and environment; a critical issue in nuclear policy (GS3: Environment/Energy)">waste management</span> and <span class="key-term" data-definition="Decommissioning — the process of safely shutting down a nuclear power plant after its operational life, including dismantling and site remediation (GS3: Environment/Energy)">decommissioning</span> protocols. Continuous monitoring, capacity building, and public awareness will be crucial to achieve the ambitious 100 GW target while safeguarding health and the environment.</p>