The Parliament of India passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This step is a major legislative step to reform its nuclear energy framework. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 was introduced in the Lok Sabha on 15 December 2025. The Bill proposes a new legal framework for India’s Nuclear Energy Sector.
Importantly, the Bill repeals the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 and replaces them with a single, comprehensive law aligned with India’s present and future energy requirements. Through this reform, India aims to modernise nuclear governance, attract investment, and align with global nuclear energy norms.
What Are the Major Objectives of the SHANTI Bill, 2025:
The SHANTI Bill, 2025 aims to achieve several key objectives in India’s nuclear energy landscape:
- Promote safe and sustainable nuclear energy, ensuring that nuclear power plays a critical role in the country’s long-term energy strategy.
- Reduce regulatory uncertainty, creating a stable and predictable environment for nuclear energy investments and operations.
- Address investor and supplier concerns, fostering confidence in the nuclear sector and attracting global partnerships.
- Strengthen institutional accountability, ensuring that nuclear activities are governed by transparent, responsible, and effective oversight.
- Support India’s clean energy transition, contributing to the nation’s goals of reducing carbon emissions and advancing sustainable energy sources.
- Enhance nuclear installed capacity to meet the growing demand for clean energy, bolstering the country’s energy security.
- Ensure round-the-clock power supply for emerging needs, such as data centres and other future-ready applications. It will support India’s digital and technological evolution.
What Are the Main Provisions of SHANTI Bill, 2025?
The major provisions of the SHANTI Bill, 2025 are as follows –
- Replacement of Existing Nuclear Laws – Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act, 2010. The Bill consolidates two major laws into a single framework.
- Atomic Energy Act, 1962 governed development and use of atomic energy. It also restricted nuclear activities mainly to government entities.
- Civil Liability for Nuclear Damage Act, 2010 defined liability and compensation in case of nuclear incidents. It placed strict no-fault liability on operators.
- The new Bill integrates and reforms both statutes.
- Licensing of Non-Government Entities:
- One of the most significant reforms relates to licensing. Under the earlier framework, licences were granted only to central government entities or government companies. Private sector participation was largely restricted.
- As per the New Provisions Under the SHANTI Bill, 2025, the central government may now grant licences to Indian private companies, joint ventures between government entities and private companies, any other person expressly permitted by the government.
- Permitted Activities under the SHANTI Bill, 2025:
- The permitted activities are building, owning, or operating nuclear plants or reactors, fabrication, transport, trade, and storage of nuclear fuel.
- However, any activity involving radiation exposure requires safety authorisation from AERB.
- Liability for Nuclear Damage:
- No-Fault Liability Principle:
- Operators remain liable for nuclear damage regardless of negligence.
- Operators must maintain insurance coverage.
- The central government bears liability beyond the specified cap.
- Revised Liability Limits: Instead of a single cap, the Bill introduces a tiered structure:
- Liability ranges from ₹100 crore to ₹3,000 crore.
- The amount depends on the power capacity of the nuclear installation.
- No-Fault Liability Principle:
- Operator’s Right of Recourse:
- As per the earlier provisions (2010 Act), operators could recover compensation if a contract allowed it, the incident arose from defective equipment or material, the incident resulted from a deliberate act.
- In this regard, the SHANTI Bill, 2025 introduced the Change. The Bill removes the right of recourse for defective equipment or material. This reform aims to address long-standing concerns of global suppliers.
- Territorial Jurisdiction for Claims:
- Earlier Scope: Compensation applied only to damage within India’s territory or jurisdiction.
- Expanded Coverage: The Bill allows claims for nuclear damage in foreign territories. This applies when damage originates from incidents in India. Such coverage remains subject to prescribed conditions.
- Statutory Status to Atomic Energy Regulatory Board (AERB):
- For the first time, the Bill grants statutory recognition to AERB.
- Atomic Energy Redressal Advisory Council (AERAC):
- The Bill strengthens grievance redressal.
- Purpose: Hear appeals against decisions of the central government or AERB.
Why Is the SHANTI Bill, 2025 Significant?
Nuclear energy plays a critical role in India’s long-term energy security. However, outdated laws and investor concerns limited growth. Therefore, the Bill seeks to:
- It is linked to India’s long-term energy and climate goals.
- It outlines the country’s roadmap for decarbonisation by 2070 and a target of achieving 100 gigawatts of nuclear power capacity by 2047. For these, the bill emphasises the need to harness indigenous nuclear resources and active participation of both public and private sectors.
- It aims to position India as a contributor to the global nuclear energy ecosystem.
- The bill lays down provisions for licensing and safety authorisation for specified persons involved in the production or use of nuclear energy.
- It aims to bring under regulation the use of nuclear and radiation technologies in areas such as healthcare, food and agriculture, industry and research while exempting research, development and innovation activities from licensing requirements.
- The bill also proposes a revised and pragmatic civil liability framework for nuclear damage.
- It confers statutory status on the Atomic Energy Regulatory Board and strengthens mechanisms related to safety, security, safeguards, quality assurance and emergency preparedness.
- It provides for the creation of Atomic Energy Redressal Advisory Council, designation of Claims Commissioners and a Nuclear Damage Claims Commission for cases involving severe nuclear damage.
Atomic Energy Regulatory Board (AERB):
- For the first time, the Bill grants statutory recognition to AERB.
- Role of AERB:
- Ensure safe use of radiation and nuclear energy.
- Regulate nuclear installations and radiation practices
- Composition:
- Chairperson
- One whole-time member
- Up to seven part-time members
- All members must be persons of eminence in nuclear science or energy.
- Appointment & Tenure:
- Appointments made by the central government.
- Based on recommendations of a search-cum-selection committee.
- Initial tenure: 3 years, extendable up to 6 years
Atomic Energy Redressal Advisory Council:
- The SHANTI Bill, 2025 includes provisions for strengthening grievance redressal mechanisms.
- This council will act as a grievance redressal mechanism.
- Its purposes are to hear appeals against decisions of the central government or AERB.
- Composition:
- Chairperson, Atomic Energy Commission (Chair)
- Director, Bhabha Atomic Research Centre
- Chairperson, AERB
- Chairperson, Central Electricity Authority
- Appeal Mechanism:
- Appeals against Council decisions lie before the Appellate Tribunal for Electricity.
Conclusion:
Through this Bill, the government clearly signals its commitment to modernising India’s nuclear governance framework. The legislation aligns nuclear policy with the country’s energy transition goals, technological advancement, and international commitments. At the same time, it carefully balances the expansion of nuclear power with robust safety norms, clear accountability mechanisms, and public interest considerations. By doing so, the Bill positions nuclear energy as a strategic pillar of India’s pursuit of energy security and a cleaner, lower-carbon future.
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 marks a paradigm shift in India’s nuclear governance. The bill aims at modernising laws, easing investor concerns, and strengthening safety oversight. The Bill positions nuclear energy as a key pillar of India’s sustainable growth strategy.
Sources:
- https://prsindia.org/billtrack/the-sustainable-harnessing-and-advancementof-nuclear-energy-for-transforming-india-bill-2025
- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2204236®=3&lang=1
- https://indianexpress.com/article/business/govt-introduces-n-power-bill-in-parliament-permits-private-participation-limits-supplier-liability-10422128/
The SHANTI Bill, 2025 is a new legislation passed by the Parliament to replace the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. It aims to modernise nuclear governance in India, attract investment, and align with global nuclear norms.
The SHANTI Bill, 2025 seeks to:
– Promote safe and sustainable nuclear energy
– Reduce regulatory uncertainty
– Support India’s clean energy transition
– Strengthen institutional accountability
– Ensure round-the-clock power supply for emerging needs like data centres
The SHANTI Bill, 2025 introduces a tiered liability structure for nuclear damage, ranging from ₹100 crore to ₹3,000 crore based on power capacity, and retains the no-fault liability principle, ensuring compensation for nuclear incidents.
The Bill grants statutory recognition to the AERB, empowering it to regulate nuclear installations, ensure safe use of radiation, and oversee the safety and security of nuclear energy operations across India.
The SHANTI Bill aligns with India’s energy transition goals, aiming for 100 gigawatts of nuclear power capacity by 2047, and positions nuclear energy as a critical pillar in achieving energy security and a lower-carbon future.
