Cabinet Approves SHANTI Bill 

Syllabus: GS3/ Energy

Context

• The Union Cabinet has approved the Atomic Energy Bill, 2025, titled SHANTI (Sustainable Harnessing of Advancement of Nuclear Technology for India).
  • The Bill seeks to create a unified and modern legal framework for India’s nuclear sector.

About

• Traditionally, nuclear power plants in India have been owned and operated only by state-owned Nuclear Power Corporation of India Ltd (NPCIL) and its fully-owned subsidiary Bharatiya Nabhikiya Vidyut Nigam (BHAVINI).
• To allow private sector participation government has to amend key legislations;
  • Atomic Energy Act, 1962, a framework for nuclear energy development and regulation.
  • Civil Liability for Nuclear Damage Act, 2010, ensuring compensation mechanisms for nuclear incidents.

Key Provisions of the Bill

• Partial Opening of the Nuclear Value Chain: The Bill allows private and global companies to participate in atomic mineral exploration, nuclear fuel fabrication and manufacturing of nuclear equipment and components.
  • Core and strategic areas such as reactor operation and weapons-related activities will continue to remain under government control.
• Revamp of the Nuclear Liability Regime: The Bill proposes a redesigned liability framework to address long-standing investor concerns by;
  • Clearly defining liability responsibilities among operators, suppliers, and the government.
  • Introducing insurance-backed liability caps to limit financial uncertainty.
  • Providing government support beyond a fixed liability threshold.
• Nuclear Safety Authority: The legislation proposes the establishment of an independent nuclear safety authority.
  • This body will strengthen regulatory oversight, separate safety regulation from promotional roles, and enhance credibility and transparency.
• Dedicated Nuclear Tribunal: It calls for a dedicated tribunal to handle nuclear-related disputes, intended to streamline resolution and enhance transparency in the sector.

Strategic Rationale Behind the Reform

• India has set an ambitious target of 100 GW of nuclear power capacity by 2047. Achieving this goal requires large-scale capital infusion, advanced reactor technologies and Faster project execution.
• Energy Transition: Nuclear power provides clean, reliable baseload energy, complementing intermittent renewables.
  • It supports India’s commitments under climate agreements by reducing dependence on fossil fuels.
• Enhancing Energy Security: Diversifying energy sources through nuclear power reduces vulnerability to fuel imports and geopolitical shocks.

Way Ahead

• Clear Regulatory Framework: Establish a robust regulatory environment to ensure safety, compliance, and transparency, addressing concerns about accountability and national security.
• Public-Private Partnerships (PPPs): Promote partnerships where the government maintains oversight, while private players handle operations, innovation, and investment, ensuring a balance of interests.
• Gradual Implementation: Start with pilot projects and small-scale initiatives to test private sector involvement, ensuring risk management before large-scale implementation.

Source: TH