India’s nuclear turning point: How the SHANTI Act is redefining clean energy plans

With the passing of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 marks one of the most consequential shifts in India’s energy policy since the country first entered the nuclear age. For over six decades, India’s atomic sector was governed by legislation, the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, that maintained a near‑total state monopoly, restricted market participation, and created significant legal ambiguity for international partners.

With the SHANTI Act, India has rewritten the rules of engagement. What has emerged is a modern, market‑aligned, innovation‑ready framework that positions the country not only to expand domestic nuclear capacity, but to shape the future of global nuclear collaboration.

End of state monopoly: A new era of market participation

Perhaps the most transformative feature of the SHANTI Act is the opening of India’s nuclear sector to regulated private and foreign participation. For the first time, non‑state entities may hold up to 49% equity in civilian nuclear power projects, enabling joint ventures, international technology transfer, supply‑chain partnerships, and new investment inflows.

This 49% cap is significant for three reasons:

1. Technology access : India’s nuclear growth ambitions hinge on access to next‑generation reactor designs, advanced materials, safety instrumentation, and fuel‑cycle technologies. Private capital and foreign partners bring these capabilities at scale.
2. Acceleration of build-out : Nuclear infrastructure requires massive upfront investment. Blended finance will expedite deployment timelines, especially for standardized fleets of small modular reactors (SMRs) and advanced large reactors.
3. Domestic industrialization: Opening the ecosystem allows Indian companies to expand fabrication capacity across fuel assemblies, reactor components, heavy engineering, robotics, cybersecurity, AI‑based inspection systems, and waste management.

This shift repositions nuclear energy as a commercial opportunity. Nuclear will no longer be the exclusive domain of the sovereign state, but a regulated market with clear entry conditions, safeguards, and economic incentives.

Liability reform: Removing the greatest barrier to international collaboration

For years, India’s nuclear program was constrained by an unclear and stringent supplier liability regime that discouraged international reactor vendors and component suppliers from entering the Indian market.

The SHANTI Act resolves this by:

• Aligning India with global norms through clearer liability definitions and adherence to the Convention on Supplementary Compensation (CSC)
• Capping supplier liability, reducing ambiguity around operator vs. supplier responsibility
• Establishing structured insurance and financial security mechanisms to support the new liability regime

The Second Schedule of the Act introduces tiered liability caps based on thermal reactor size — doubling limits for the largest reactors and defining structured caps across all power categories:

1. Greater than 3600 MW: 3,000 crore
2. 1500–3600 MW: INR 1,500 crore
3. 750–1500 MW: INR 750 crore
4. 150–750 MW: INR 300 crore
5. < 150 MW and certain fuel-cycle facilities: INR 100 crore

These new liability limits have major implications:

• A rapidly expanding Indian nuclear insurance pool will be essential as new operators enter the market
• Existing nuclear operators policies must undergo comprehensive redrafting to reflect updated caps and responsibilities
• For insurers, reinsurers, and risk engineers, the SHANTI Act 2025 creates entirely new classes of nuclear risk, premium models, and capacity requirements

This clarity removes the principal roadblock that prevented top global original equipment manufacturer (OEMs) and technology vendors from participating in India’s nuclear story.

Regulatory independence and transparency

The SHANTI Act 2025 grants the Atomic Energy Regulatory Board (AERB) full statutory status which is an upgrade long sought by global partners who viewed regulatory independence as a prerequisite for technology sharing and joint ventures.

AERB’s enhanced mandate includes:

• Independent licensing and safety authorization
• Safety codes and standards aligned with international norms
• Transparent inspection, enforcement, and incident‑notification processes
• Oversight of radiation safety across power and non‑power applications
• Public communication and stakeholder engagement

This shift aligns India more closely with international best practices including from the U.S. NRC and France’s ASN, creating a regulatory environment conducive to long‑term private investment.

A comprehensive modernization of India’s nuclear legal framework

By repealing both the Atomic Energy Act 1962 and the CLND Act 2010, the SHANTI Act consolidates India’s nuclear governance under a single modern law. It clarifies rights, responsibilities, and government powers across the entire nuclear lifecycle:

• Licensing, decommissioning, safety oversight
• Mining and processing of uranium and thorium
• Radioactive waste management
• Emergency response, safeguards, and restricted information
• Tariff setting and power sector integration
• Research, innovation, and patents for peaceful uses
• Claims mechanisms for nuclear damage

The Act not only supports India’s aims for 100 GW of nuclear capacity by 2047, but recognizes nuclear energy as foundational to AI, quantum computing, semiconductor manufacturing, hydrogen production, and data‑center reliability.

Implications for global partners and Indian industry

The SHANTI Act is more than a piece of legislation; it is a strategic pivot with worldwide implications.

For international technology providers

• India becomes one of the world’s most attractive markets for large reactors, SMRs, micro‑reactors, and advanced fuel cycles
• Clear liability and regulatory frameworks de‑risk long‑term contracts
• New opportunities emerge for AI‑enabled safety tools, robotics, cybersecurity, and digital twins

For Indian private industry

• The nuclear supply chain, from forgings to fuel‑handling equipment to engineering services, opens dramatically
• Domestic insurers and reinsurers now face an expansion of high‑value nuclear lines
• New research and development commercialization pathways unlock innovation at universities, labs, and startups

For global nuclear diplomacy

• India positions itself as a stable, policy‑aligned nuclear partner, capable of co‑developing technologies and contributing to global SMR exports

A defining moment for India’s energy future

With the SHANTI Act, India has made a bold and necessary move toward a cleaner, more resilient, and technologically advanced energy future. The Act resolves long‑standing policy bottlenecks, introduces global‑standard liability practices, strengthens regulatory institutions, and embraces private and international collaboration.

If implemented with the same ambition with which it was conceived, the SHANTI Act could propel India into the top tier of global nuclear innovators, shaping not just the country's decarbonization pathway, but the future of nuclear energy worldwide.

To find out more about how the SHANTI Act could accelerate commercial opportunities, contact:

Contact

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Kate Fowler

Global Head of Nuclear, Natural Resources

email Email

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