SHANTI Bill 2025 – India’s Biggest Nuclear Energy Reform Since Independence

Source: PIB, The Hindu, Indian Express

Relevance:
Quick facts about SHANTI BILL 2025
GS-2 (Governance, Transparency, Regulatory Bodies)
GS-3 (Energy, Nuclear Technology, Climate Change, Infrastructure)

Important Key Concepts for Prelims and Mains:

For Prelims:

SHANTI Bill 2025, Atomic Energy Act 1962 repeal, CLND Act 2010 repeal, NPCIL, AERB statutory status, Nuclear liability caps, Section 39 RTI exemption, Atomic Disputes Tribunal, Nuclear capacity targets (100 GW by 2047).

For Mains:

Nuclear governance reforms, Energy security & clean transition, Private sector participation, Liability–safety–accountability issues, Transparency vs national security (RTI debate), AERB independence, Financing & project delays, Advanced nuclear technologies (SMRs/HTGR/MSR), Centre–State emergency coordination

Why in News?

The Union Government introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 in the Lok Sabha.
This landmark Bill replaces the Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act, 2010, opening the door for the first-ever private and foreign participation in India’s nuclear power generation.

What is Nuclear Energy?

Nuclear energy is the use of controlled atomic reactions to produce power. At its core, it relies on splitting atoms in a process called fission, which releases large amounts of heat. This heat is then used to generate electricity without producing greenhouse gases. Globally, nuclear energy is valued as a clean, dependable source that complements renewable options like solar and wind.

The Bill aims to accelerate India’s energy transition, expand nuclear capacity to meet climate goals, and overhaul the regulatory, liability, and transparency framework.

Evolution of India’s Nuclear Laws

India’s nuclear power journey has been guided by a series of landmark legislations that ensured the peaceful use of atomic energy while safeguarding national interests. Each step reflected the country’s growing confidence and maturity in managing nuclear technology responsibly.

The Atomic Energy Act, 1962, replaced the earlier 1948 law and laid down the foundation for India’s nuclear programme. It empowered the government to regulate atomic energy for peaceful purposes, ensuring strict control over research, development, and use of nuclear materials.
Amendments in 1986, 1987, and 2015 in the Atomic Energy Act of 1962 gradually opened the sector beyond the Central Government, allowing government companies and joint ventures to participate in nuclear power generation. The amendments reflected India’s intent to expand capacity while keeping strategic oversight intact.
The Civil Liability for Nuclear Damage Act, 2010, introduced a no-fault liability regime, ensuring compensation in case of nuclear incidents. This law provided clarity on responsibility and built public trust by prioritizing safety and accountability in nuclear operations.

Nuclear Energy Mission

Announced in Union Budget 2025-26, it allocates ₹20,000 crore to drive design, development, and deployment of Small Modular Reactors (SMRs).
Target: At least five indigenously designed SMRs to be operational by 2033, strengthening India’s clean energy roadmap.
Initiatives by Bhabha Atomic Research Centre (BARC):
- 200 MWe Bharat Small Modular Reactor (BSMR‑200)
- 55 Mwe (Megawatt electrical) SMR‑55
- Up to 5 MWth (Megawatt thermal) High‑temperature gas‑cooled reactor for hydrogen generation.
Strategic aim: Position India as a leader in advanced nuclear technologies while ensuring sustainable energy security.

Key Provisions of SHANTI Bill 2025

1. Repeal & Consolidation of Nuclear Laws

Replaces:
- Atomic Energy Act, 1962
- Civil Liability for Nuclear Damage Act (CLND), 2010
Creates one unified legal framework for nuclear power generation, safety, liability, and regulation.

2. Private & Foreign Participation Allowed for First Time

Ends monopoly of Nuclear Power Corporation of India Ltd (NPCIL).
Private Indian firms, global nuclear companies, and joint ventures can:
- Build nuclear power plants
- Own them
- Operate them
- Decommission them

This is the biggest structural change in India’s nuclear sector since 1947.

3. Strategic Functions Retained by Government

Despite private entry, the following remain entirely under state control:

Nuclear fuel production
Heavy water manufacturing
Radioactive waste management
Enrichment and reprocessing
Transport of sensitive materials

This protects national security & non-proliferation commitments.

4. AERB Gets Statutory Status

The Atomic Energy Regulatory Board (AERB) becomes a statutory, independent regulator.
Accountable directly to Parliament.
Mandated to regulate:
- Safety
- Security
- Environmental compliance
- Reactor licensing
- Decommissioning
Expected to be strengthened with technical & financial autonomy.

5. New Nuclear Liability Structure

Major change:

Supplier liability removed
Operator liability capped and linked to reactor capacity
Aligns India with international conventions, attracting global suppliers

Critics argue:

May weaken accountability
Liability based on plant size ≠ actual damage
Shifts long-term risks to State and citizens
Defies “polluter pays” principle

Supplier Liability

The company that supplies nuclear equipment/components is responsible if an accident happens because of faulty parts.

Operator Liability

The company that runs the nuclear plant is responsible for paying compensation if an accident happens.

6. Creation of Atomic Disputes Tribunal

Specialised tribunal for nuclear disputes
Faster resolution vs normal courts
Improves investor confidence & clarity

7. Support for Advanced Technologies

Bill enables adoption of:

Small Modular Reactors (SMRs)
Bharat Small Reactors (BSRs)
Molten Salt Reactors
Advanced High-Temperature Reactors

India aims for:

5 SMRs by 2033
100 GW nuclear capacity by 2047

8.Claims Commissioner Appointment

Empowers the Central Government to appoint Claims Commissioners for adjudicating compensation claims related to nuclear damage.

Need for Nuclear Governance Reforms

1. Massive Capacity Targets

Current capacity: 8.18 GW
Goal:
22 GW by 2032
100 GW by 2047

NPCIL alone cannot meet these targets.

2. Financing Gaps

100 GW needs Rs 15 lakh crore
Budget 2025–26 allocated only Rs 20,000 crore
Private capital is essential.

3. Chronic Delays

Kudankulam Units 3–6 are years behind schedule
Private EPC players can improve execution

4. Fuel Constraints

Limited domestic uranium
Need diversified imports
Need private partnerships in non-sensitive mining operations

5. Climate & Energy Security Goals

Nuclear = reliable baseload power
Helps balance renewable-heavy grids
Essential for Net Zero 2070

Concerns Around SHANTI Bill 2025

1. Liability Dilution

Removal of supplier liability is controversial
Capped operator liability may under-compensate victims
Memories of Bhopal Gas Disaster shape public perception

2. Transparency Challenges: Section 39 & RTI Override

Section 39:

Allows Centre to declare any nuclear-related info as “restricted”
Completely overrides RTI Act
No appeals or public-interest override
Applies to:
Reactor designs
Fuel data
Regulatory submissions
Siting & construction details

Concerns:

Breaks India’s transparency architecture
Weakens democratic oversight
May deter whistleblowers
Public cannot access crucial safety information

India’s Current Nuclear Landscape (2025)

20+ reactors operational
NPCIL sole operator
12+ reactors in various stages of planning
SMR R&D mission underway
India exploring indigenous thorium-based reactors

Measures Needed to Strengthen Nuclear Governance

1. Ensure True Independence of AERB

Transparent appointments
Financial autonomy
Power to shut down unsafe reactors
Adequate staffing (engineers, radiation experts)

2. Rebalance Liability Structure

Review caps regularly
Nuclear Insurance Pool 2.0
Retain limited supplier liability for defective reactor components
Preserve “polluter pays” principle

3. Build Transparency & Public Trust

Mandatory safety audit disclosures
Public hearings on new plants
Real-time radiation monitoring dashboards
Independent accident investigation framework

4. Strengthen Emergency Preparedness

Clear Centre–State coordination mechanism
Mock drills involving public
Emergency medical teams trained in radiation response
Iodine tablet protocols and evacuation plans

5. Waste Management Framework

Deep geological repository roadmap
Strict rules for spent fuel transport
Mandatory decommissioning fund from Day 1
GPS-based tracking of waste containers

6. Expand Fuel Security

Diversify uranium import partnerships
Enhance domestic mining
Create strategic uranium reserves

7. Boost R&D and Human Capital

Dedicated Nuclear Innovation Fund
Expand BARC, IGCAR and DAE capacity
Nuclear engineering courses in IITs
Training academies for private operators

8. Strengthen Public Communication System

Clear messaging during emergencies
Community benefits in plant areas
Address fears about radiation & safety

Conclusion

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, stands as a pivotal step in shaping the next phase of India’s nuclear journey. By modernising the legal framework and strengthening institutional oversight, it creates the foundation for a more efficient, innovative, and secure nuclear ecosystem. The Bill supports India’s long-term vision of expanding clean, reliable energy while ensuring that strategic interests remain fully protected. As the country moves toward greater energy independence and technological advancement, this legislation can play a defining role in driving the growth of India’s nuclear power and broader energy landscape.

UPSC PYQ

Q. In India, why are some nuclear reactors kept under “IAEA safeguards” while others are not? (2020)

(a) Some use uranium and others use thorium
(b) Some use imported uranium and others use domestic supplies
(c) Some are operated by foreign enterprises and others are operated by domestic enterprises
(d) Some are State-owned and others are privately owned
Ans: (b)

Q. Consider the following statements: (2017)

The Nuclear Security Summits are periodically held under the aegis of the United Nations.
The International Panel on Fissile Materials is an organ of the International Atomic Energy Agency.

CARE MCQ

Q. The SHANTI Bill 2025 is significant because it allows, for the first time in India’s history, which of the following?

(a) Import of foreign uranium
(b) Private and foreign companies to operate nuclear power plants
(c) India to join international nuclear liability conventions
(d) Establishment of nuclear parks under state governments

Answer: (b)
Explanation:

The SHANTI Bill ends NPCIL’s monopoly and permits private & foreign companies to build and operate nuclear power plants for the first time.

Uranium imports already existed (Kazakhstan, Russia, Canada).

India has still not joined international liability conventions.

Nuclear parks are already being developed under central agencies.