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India Passes Landmark "Shanti Bill" to Allow Private Sector Nuclear Energy

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  Published in Science and Technology on Sunday, December 28th 2025 at 15:35 GMT by The New Indian Express

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India's "Shanti Bill" Ushers in Era of Private Sector Nuclear Energy & Research

India has taken a monumental step towards reshaping its nuclear energy landscape with the passage and implementation of the “Shanti Bill,” officially known as the Atomic Energy Act (Amendment) Bill, 2025. The legislation, championed by Minister for Science and Technology Jitendra Singh, marks a significant departure from decades of state-controlled dominance in the sector and opens doors for private companies to participate in nuclear power generation, research, and related activities. The bill's passage, announced on December 28th, 2025, is being hailed as a landmark reform with the potential to accelerate India’s clean energy transition and bolster its scientific capabilities.

For decades, the Department of Atomic Energy (DAE) and public sector undertakings like the Nuclear Power Corporation of India Limited (NPCIL) have held a virtual monopoly over nuclear activities in India. While this model facilitated the development of indigenous nuclear technology and ensured strategic control, it has also been criticized for hindering innovation, slowing down project timelines, and limiting access to advanced technologies. The Shanti Bill directly addresses these concerns by introducing a framework that allows private entities – both Indian and foreign – to engage in various aspects of the nuclear sector, albeit under stringent regulatory oversight.

Key Provisions & Changes Introduced by the Shanti Bill:

The bill’s core objective is to foster a more dynamic and competitive environment within India's atomic energy program. Here are some of its key provisions:

• Private Participation in Nuclear Power Generation: The most significant change allows private companies to establish and operate nuclear power plants, subject to licensing from the Atomic Energy Regulatory Board (AERB) and adherence to strict safety protocols. This is a major shift; previously, only NPCIL was authorized to build and operate commercial reactors. The bill aims to alleviate some of the pressure on NPCIL, which has faced challenges in meeting India’s growing energy demands.
• Private Involvement in Nuclear Research & Development: The legislation encourages private sector investment in nuclear research and development activities. This includes areas like advanced reactor designs (including Small Modular Reactors - SMRs), fusion technology, isotope production for medical applications, and nuclear waste management solutions. The government intends to provide incentives, including tax breaks and streamlined approval processes, to attract private investment in these crucial areas.
• Establishment of a Nuclear Technology Innovation Fund: To further stimulate innovation, the bill establishes a dedicated fund – the Nuclear Technology Innovation Fund (NTIF) – which will provide grants and seed funding for promising research projects undertaken by both public and private entities. This fund is intended to bridge the gap between basic research and commercial application.
• Strengthening Regulatory Oversight: Recognizing the potential risks associated with increased private involvement, the Shanti Bill reinforces the authority of the AERB. The bill mandates enhanced safety inspections, stricter licensing requirements, and greater transparency in nuclear operations. It also introduces provisions for independent audits and public disclosure of information related to nuclear facilities.
• Focus on Advanced Technologies: The bill explicitly encourages the adoption of advanced nuclear technologies, including SMRs, which offer advantages like modularity, scalability, and enhanced safety features compared to traditional large-scale reactors. The government sees SMRs as a key component in providing clean energy access to remote areas and industrial clusters.
• Streamlined Processes: The bill aims to reduce bureaucratic hurdles and streamline the approval process for nuclear projects, making it easier for both public and private entities to navigate regulatory requirements.

Rationale & Expected Impact:

Minister Jitendra Singh emphasized that the Shanti Bill is not about privatizing India’s strategic nuclear assets but rather about leveraging the expertise and resources of the private sector to accelerate progress in the field. He stated that the bill will unlock significant investment, drive innovation, and enhance India's global competitiveness in the nuclear energy domain.

The anticipated impact of the Shanti Bill is multifaceted:

• Increased Nuclear Power Capacity: Private participation is expected to significantly boost India’s nuclear power generation capacity, contributing towards achieving its ambitious climate change goals and reducing reliance on fossil fuels.
• Technological Advancement: The influx of private investment and expertise will likely accelerate the development and deployment of advanced nuclear technologies in India.
• Job Creation: The expansion of the nuclear sector is expected to generate numerous employment opportunities across various skill levels.
• Enhanced Energy Security: Diversifying energy sources through increased nuclear power generation strengthens India’s energy security.

Challenges & Concerns:

While the Shanti Bill has been largely welcomed, some concerns remain. These include ensuring adequate safety oversight of private operators, preventing potential conflicts of interest, and addressing public perception regarding nuclear technology. The AERB will play a crucial role in mitigating these risks through rigorous regulation and enforcement. Furthermore, the success of the bill hinges on attracting substantial private investment, which requires creating a stable and predictable regulatory environment.

Looking Ahead:

The implementation of the Shanti Bill marks a pivotal moment for India’s nuclear sector. It signals a shift towards a more collaborative and innovative approach to harnessing atomic energy for national development. The coming years will be critical in shaping the future of this reformed landscape, as private companies begin to enter the field and contribute to India's clean energy ambitions. The government has committed to ongoing monitoring and evaluation of the bill’s impact, with adjustments expected based on experience gained during its initial implementation phase.

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