Govt Introduces ‘Shanti Bill’ To Open Nuclear Power To Private Players, Retain Strategic Control
The Bill allows private companies and joint ventures to apply for licences to build, own and operate nuclear power plants.
The government on Monday introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, also referred to as the Shanti Bill, seeking to open nuclear power generation to private companies while retaining tight strategic control over fuel, pricing and safety.
The Bill allows private companies and joint ventures to apply for licences to build, own and operate nuclear power plants, marking a significant shift from India’s long-standing state-dominated nuclear power framework. However, the draft law makes it clear that core strategic levers will remain with the Union government, particularly the Department of Atomic Energy (DAE).
Under the proposed legislation, nuclear power tariffs will be fixed by the Centre, overriding the Electricity Act, 2003. The move effectively classifies nuclear power as strategic infrastructure rather than a market-priced commodity.
The Bill also rewrites India’s nuclear liability framework. It places primary liability for nuclear damage on the plant operator, while capping liability at 300 million Special Drawing Rights (SDR) per incident — roughly Rs 3,300–3,500 crore. The government will step in to cover compensation beyond the cap and in cases involving natural disasters, war or terrorism.
Despite opening the door to private participation, the government has retained exclusive control over the nuclear fuel cycle. Uranium, thorium and other fissile materials will continue to vest with the Centre, even in privately operated plants. Activities such as uranium enrichment, spent fuel reprocessing, high-level waste management and heavy water production will remain government-run.
The draft law gives the Centre sweeping powers over nuclear facilities. It can suspend or cancel licences on grounds of national security, public safety or public interest. If a nuclear plant is abandoned after fuel loading, the government can take over the facility, with assets vesting in the Centre free of encumbrances, including debt.
The Bill also allows strategic and defence-linked nuclear projects to be kept outside the jurisdiction of the civilian nuclear regulator, enabling the government to create separate oversight mechanisms for sensitive programmes.
While the legislation does not specify any cap on private sector equity, experts noted that the structure effectively limits private control to construction, financing and operations, with the state retaining authority over materials, pricing, licensing and emergency powers.
The government said the Bill is aimed at accelerating nuclear capacity addition to support India’s clean energy transition, round-the-clock power requirements for data centres and advanced manufacturing, and long-term energy security.
The Bill has been introduced in the Lok Sabha and is expected to be taken up for detailed scrutiny by parliamentary committees in the coming weeks.
