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India's Nuclear Future Re-imagined: Lok Sabha Passes the Shanti Bill

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  Published in Science and Technology on Wednesday, December 17th 2025 at 8:18 GMT by moneycontrol.com
      Locale: Delhi, INDIA

India’s Nuclear Future Re‑imagined: Lok Sabha Passes the Shanti Bill to Overhaul the Nuclear Energy Framework

In a landmark move for the country’s energy policy, the Lok Sabha approved the “Shanti Bill” – a sweeping overhaul of India’s nuclear energy framework that promises to bring the sector into a new era of safety, sustainability and market‑oriented governance. The vote, which passed with an overwhelming majority, comes at a time when India’s energy demand is surging, its coal‑based grid is under pressure, and the government has been keen to expand nuclear capacity to curb climate‑change risks. The Bill’s provisions, which were debated over several days in the lower house, are designed to address long‑standing concerns about regulatory bottlenecks, decommissioning of aging reactors, and the nuclear fuel cycle, while creating a more attractive environment for private participation.

A Brief Historical Context

India’s nuclear programme dates back to the 1950s, when the Atomic Energy Act (AEA) of 1962 created the Atomic Energy Commission (AEC) and laid the foundations for civilian nuclear use. In 2004 the AEA was amended to establish the Atomic Energy Regulatory Board (AERB), a key regulator responsible for licensing and oversight of nuclear facilities. The 2004 amendments also made it easier for India to sign nuclear cooperation agreements with other countries – a critical step in securing access to foreign technology and fuel.

However, since the 2000s the nuclear sector has been marred by regulatory delays, safety scares (most notably the 2004 Bhopal gas tragedy that raised broader public scepticism), and the slow decommissioning of outdated reactors such as the Tarapur Atomic Power Station (TAPS) and the Kudankulam Nuclear Power Plant (KKNPP). The government has also been wary of the costs associated with expanding nuclear capacity, given the high upfront capital requirements and long lead times for construction. Against this backdrop, the Shanti Bill seeks to modernise the entire framework and make nuclear power a viable and safe part of India’s diversified energy mix.

Key Provisions of the Shanti Bill

The Bill also re‑institutes the “Shanti Committee” – a specialised panel comprising nuclear scientists, policy experts, and civil‑society representatives – to oversee the implementation of nuclear projects and resolve any disputes.

Parliamentary Debate and Reactions

During the three‑day debate, Members of Parliament (MPs) from a spectrum of political parties voiced strong support for the Bill. The ruling NDA coalition highlighted the Bill’s role in ensuring a clean‑energy future, while opposition parties lauded its focus on safety and public participation. Some MPs expressed concerns about the environmental impact of expanding nuclear capacity, especially near ecologically sensitive zones, but the government assured them that the Bill’s safety and waste‑management provisions would mitigate these risks.

In a statement, the Ministry of Environment, Forest and Climate Change emphasised that the Bill aligns with India’s commitments under the Paris Agreement, by reducing reliance on coal‑based electricity generation. Meanwhile, the Ministry of Commerce highlighted the potential for technology transfer and export opportunities through the new nuclear cooperation framework.

Economic Implications

Economists estimate that the Bill could attract an additional ₹4,000 cr. (US$540 million) in private investment over the next decade. By reducing licensing timelines, the Bill is expected to cut the cost of constructing a 1 GW nuclear plant by 12–15 %. The inclusion of low‑interest loans from NPCIL and the possibility of engaging international partners could further enhance capital efficiency.

Additionally, the Bill’s decommissioning mandate is projected to create around 5,000 jobs in the short term – from demolition crews to nuclear waste handlers – and stimulate local economies around the sites slated for decommissioning.

Next Steps

With the Bill now passed, the Ministry of Power is preparing a detailed implementation roadmap that will be tabled in the upper house, the Raj Sabha, next month. Concurrently, the government plans to convene a high‑level inter‑ministerial committee to finalize the nuclear cooperation agreement with Russia, which is expected to include provisions on fuel import, technology sharing, and joint research.

The Shanti Bill also sets the stage for a potential revision of the Atomic Energy Act, which may incorporate further refinements to the nuclear regulatory framework in line with the latest international norms. A series of public consultations will follow, aiming to gather input from local communities, environmental groups and industry stakeholders before final ratification.

Bottom Line

The Shanti Bill marks a pivotal shift in India’s approach to nuclear energy. By streamlining regulatory processes, tightening safety standards, encouraging private participation, and laying down a clear plan for decommissioning and waste management, the Bill seeks to transform nuclear power from a niche, heavily regulated sector into a mainstream, market‑driven component of India’s energy mix. If successfully implemented, it could help India meet its ambitious 2030 target of 40 GW of nuclear capacity, reduce carbon emissions, and ensure a more secure, diversified electricity supply for a growing economy.