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India Passes Landmark Nuclear Reform Bill: The "Shanti Bill"

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  Published in Science and Technology on Sunday, December 28th 2025 at 10:09 GMT by The Hans India

The "Shanti Bill": India Shatters Decades of Nuclear Sector Restrictions with Landmark Reform

India has ushered in a significant shift in its nuclear energy landscape with the passage of the Atomic Energy (Amendment) Bill, 2023, now officially known as the “Shanti Bill” after Homi J. Bhabha, the father of India’s atomic program. The bill, recently approved by both houses of Parliament and receiving Presidential assent, represents one of the most substantial reforms to India's science and technology sector in decades, effectively dismantling a six-decade-old regulatory framework that has hampered private sector participation and innovation within the nuclear energy domain. The legislation is being hailed by Science & Technology Minister Jitendra Singh as a pivotal moment, poised to unlock significant growth potential and accelerate India’s pursuit of clean energy goals.

The Legacy of the Atomic Energy Act, 1948: A Bottleneck for Progress

To understand the significance of this reform, it's crucial to grasp the context of the existing legal framework. The original Atomic Energy Act of 1948, while instrumental in establishing India’s nuclear program during its nascent stages, imposed a near-monopoly on the Department of Atomic Energy (DAE). Section 20 of this act effectively prohibited private entities from engaging in atomic energy activities without explicit government permission. This restriction, intended to safeguard national security and control sensitive technology, inadvertently created a significant bottleneck for innovation and expansion within the nuclear sector. While public sector undertakings like the Nuclear Power Corporation of India Limited (NPCIL) have been responsible for building and operating nuclear power plants, the lack of private investment and expertise has limited the pace of technological advancement and deployment of new reactor designs.

The "Shanti Bill": Opening Doors to Private Sector Participation

The Atomic Energy (Amendment) Bill 2023 fundamentally alters this landscape. Its core provision removes Section 20’s blanket prohibition, allowing private companies to engage in nuclear activities – including research, design, construction, operation, and maintenance of facilities – with the necessary licenses and approvals from regulatory bodies. This doesn't mean a free-for-all; stringent safety protocols and oversight remain paramount. The bill explicitly states that the Central Government retains the power to regulate these private entities and ensure adherence to national security concerns.

Minister Jitendra Singh emphasized that this amendment is not about privatization of nuclear assets, but rather about fostering collaboration and leveraging the expertise and resources of the private sector to complement the DAE’s efforts. He highlighted the potential for private companies to contribute to areas like advanced reactor technology development, nuclear waste management, and specialized components manufacturing – all crucial aspects of a modern and sustainable nuclear program.

Key Implications & Potential Benefits:

The implications of this legislative change are far-reaching:

• Accelerated Nuclear Power Growth: Private investment is expected to accelerate the deployment of new nuclear power plants, contributing significantly towards India’s ambitious climate goals outlined in its Nationally Determined Contributions (NDCs) under the Paris Agreement. The government aims for a substantial increase in nuclear capacity over the next decade.
• Technological Innovation: Private sector involvement will likely spur innovation in reactor design and operation. This could include exploring Small Modular Reactors (SMRs), which offer greater flexibility and scalability compared to traditional large-scale reactors, as well as advanced technologies like thorium-based reactors – a long-standing ambition for India’s nuclear program.
• Job Creation & Economic Growth: The expansion of the nuclear sector will generate employment opportunities across various skill levels and contribute to overall economic growth.
• Strengthening Nuclear Safety Culture: Competition and collaboration can foster a stronger safety culture within the industry, driving continuous improvement in operational practices and risk management.
• Thorium Utilization: While not directly addressed by the bill itself, the increased private sector involvement is expected to accelerate research and development related to thorium utilization. India possesses significant reserves of thorium, and harnessing this resource could provide long-term energy security and reduce dependence on imported uranium. The bill creates a more conducive environment for private companies to invest in the technologies needed to make thorium reactors commercially viable.

Challenges & Concerns:

Despite the overwhelmingly positive outlook, some challenges and concerns remain:

• Regulatory Framework: A robust and transparent regulatory framework is crucial to ensure safety and prevent potential conflicts of interest. The Atomic Energy Regulatory Board (AERB) will need to adapt its processes to effectively oversee private sector activities.
• National Security Concerns: Maintaining stringent safeguards against proliferation risks remains paramount, requiring constant vigilance and adherence to international norms.
• Public Perception: Addressing public concerns about nuclear safety and waste management is essential for building trust and ensuring the long-term sustainability of the program. Clear communication and community engagement will be vital.
• Level Playing Field: Ensuring a level playing field between public sector undertakings and private companies, avoiding undue advantages or disadvantages, will be important to foster healthy competition.

The passage of the "Shanti Bill" marks a watershed moment for India’s nuclear program. By dismantling decades-old restrictions and opening doors to private sector participation, the government has laid the foundation for a more dynamic, innovative, and sustainable nuclear energy future. While challenges remain, the potential benefits – from accelerated power generation to technological advancements – are substantial and promise to contribute significantly towards India's energy security and climate change mitigation efforts. The success of this reform will depend on careful implementation, robust regulation, and ongoing engagement with all stakeholders.