Shanti Bill has formally ended India’s decades-old public sector monopoly over nuclear power. In a landmark reform, the Union Cabinet chaired by Prime Minister Narendra Modi on Friday approved the Atomic Energy (SHANTI) Bill, 2025, paving the way for private companies to build, own, and operate nuclear power plants under government oversight.
The decision marks one of the most consequential shifts in India’s energy policy since Independence, aimed at accelerating clean baseload power generation, attracting private and foreign capital, and supporting a national target of 100 gigawatts of nuclear capacity by 2047, up from about 8 GW today.
What Is the Shanti Bill
The Shanti Bill amends key provisions of India’s nuclear legal framework, including the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, which until now restricted nuclear power generation to public sector entities under the Department of Atomic Energy.
For the first time, private Indian companies will be legally permitted to construct, own, and operate nuclear reactors, while strategic functions such as nuclear fuel supply, spent fuel reprocessing, and radioactive waste management will remain with the government.
Officials described the Bill as a calibrated reform that balances investment openness with national security and safety considerations.
Why the Shanti Bill Is a Major Policy Shift
India’s nuclear programme has remained state-controlled for nearly 65 years, largely due to concerns over safety, liability, and strategic sensitivity. However, rapidly rising electricity demand and climate commitments have forced a rethink.
According to government estimates, India’s power demand is expected to more than double by 2047, driven by manufacturing growth, electric mobility, urbanisation, and energy-hungry sectors such as data centres and artificial intelligence infrastructure.
While renewable energy capacity has expanded quickly, policymakers acknowledge that solar and wind alone cannot provide round-the-clock power. Nuclear energy, with its low-carbon and continuous output, is now being positioned as a critical baseload solution.
Key Features of the Shanti Bill
The Cabinet-cleared legislation introduces several structural changes designed to make nuclear projects commercially viable for private players.
Key provisions include:
- Private sector participation in civil nuclear power generation
- Capped liability exposure for plant operators and equipment suppliers
- Insurance cover limited to ₹1,500 crore per incident under the Indian Nuclear Insurance Pool
- Permission for up to 49 percent foreign direct investment in nuclear power projects
- Creation of a specialised nuclear tribunal to handle disputes
- Legal support for intellectual property ownership arising from nuclear research and development
- Potential move toward independent tariff regulation, improving pricing transparency
Together, these measures address long-standing industry concerns around risk, financing, and regulatory uncertainty.
Liability Reform Unlocks Private Investment
One of the biggest obstacles to nuclear investment in India has been the liability regime, which previously exposed operators and suppliers to open-ended financial risk in the event of an accident.
The Shanti Bill introduces clear liability caps and a structured insurance mechanism, significantly reducing uncertainty for investors. Energy experts say this change alone could unlock billions of rupees in long-term capital that had remained on the sidelines.
By aligning India’s nuclear liability framework closer to international norms, the government hopes to attract both domestic conglomerates and global technology partners.
Foreign Investment and Technology Access
The decision to allow up to 49 percent FDI in nuclear power projects represents another major shift. While full foreign ownership remains prohibited, minority participation enables access to global capital, advanced reactor designs, and modern construction practices.
This is particularly significant for Small Modular Reactors, which are gaining traction globally due to their lower capital requirements, modular construction, and enhanced safety features.
Earlier this year, the government announced a dedicated Nuclear Energy Mission to promote indigenous development of advanced reactors, with a medium-term goal of operationalising multiple small reactors in the next decade.
India’s 100 GW Nuclear Target Explained
India currently operates around 8 GW of nuclear power, contributing a small share to the overall energy mix. Under the Shanti Bill framework, the government has set an ambitious target of 100 GW by 2047, coinciding with the centenary of Independence.
Officials argue that this scale-up is essential to:
- Ensure energy security amid rising demand
- Reduce dependence on fossil fuels
- Support India’s net-zero emissions goal for 2070
- Provide stable power for industrial growth
Reaching this target will require sustained private participation, faster project execution, and long-term policy stability.
Companies Likely to Benefit From the Shanti Bill
The opening of nuclear power to private participation is expected to trigger a multi-decade capital expenditure cycle, benefiting companies across engineering, construction, and power generation.
Listed companies expected to gain include:
- Larsen and Toubro for EPC execution, reactors, and heavy engineering
- Tata Power, which gains optionality for long-term nuclear generation
- NTPC, as policy clarity supports nuclear expansion plans
- Bharat Heavy Electricals Ltd, a key supplier of turbines and nuclear equipment
- Walchandnagar Industries, specialising in nuclear forgings
- MTAR Technologies, focused on precision engineering for nuclear systems
- ISGEC Heavy Engineering, supplying heat exchangers and process equipment
- Thermax, providing auxiliary and energy solutions
- Engineers India Ltd, offering nuclear project consultancy
- Hindustan Construction Company, involved in civil construction for nuclear plants
Analysts view nuclear power as a long-duration theme with predictable demand and high entry barriers.
Other Cabinet Decisions Taken Alongside Shanti Bill
The Cabinet meeting also cleared several other reforms with long-term economic implications.
Foreign direct investment in the insurance sector was raised to 100 percent, a move expected to deepen insurance penetration and improve risk coverage for large infrastructure projects, including nuclear plants.
The government also approved ₹11,700 crore for Census 2027, which will be conducted in a fully digital format for the first time. Additional decisions focused on streamlining coal policies and improving market efficiency to ensure energy reliability during the transition phase.
Challenges and Implementation Risks
Despite broad support, experts caution that execution will be critical. Nuclear projects involve long gestation periods, high upfront costs, and stringent safety requirements.
Key challenges include:
- Strengthening regulatory capacity
- Ensuring uncompromised safety oversight
- Building skilled manpower
- Managing public perception around nuclear energy
The government has stressed that regulatory supervision will remain strict, even as private participation expands.
Why the Shanti Bill Is a Turning Point
The clearance of the Shanti Bill marks a decisive break from India’s state-only nuclear model. By opening the sector to private and foreign participation while retaining sovereign control over strategic areas, the government has laid the foundation for nuclear energy to emerge as a core pillar of India’s clean power strategy.
With electricity demand rising sharply and climate constraints tightening, nuclear power is being repositioned not as a legacy technology but as a future-facing solution.
As India works toward its 2047 vision, the Shanti Bill could well be remembered as the moment when the country’s nuclear sector moved from restraint to scale.
