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India's Nuclear Sector Sees Transformation with 'Shanti Bill'

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  Published in Science and Technology on Saturday, January 31st 2026 at 4:15 GMT by The Hans India
      Locales: N/A, INDIA

New Delhi, January 31st, 2026 - India's nuclear energy sector is poised for a dramatic transformation following the full implementation of the Atomic Energy (Amendment) Act, 2023 - commonly known as the 'Shanti Bill' - which has now been fully integrated into law and is beginning to yield tangible results. Passed by both Houses of Parliament in late 2023 and finalized in early 2026 after a period of regulatory adjustment, the legislation marks a monumental shift, opening the door to private sector participation in atomic energy production and distribution for the first time in over six decades.

Speaking to reporters today, Minister of State for Science and Technology, Jitendra Singh, reiterated the bill's significance, hailing it as "one of the most impactful science reforms undertaken by the Modi government." Singh emphasized the core change the Shanti Bill enacts: a redefined understanding of 'atomic energy' - moving away from a concept of strictly government-controlled resource to one that is 'available for responsible use' by a broader range of actors.

For decades, India's nuclear program was entirely under the purview of the Department of Atomic Energy (DAE) and public sector undertakings (PSUs) like Nuclear Power Corporation of India Limited (NPCIL). While this model ensured centralized control and adherence to stringent safety protocols, it also hampered the pace of expansion and innovation. Critics have long argued that the lack of private investment and competition stifled the sector's potential, especially when compared to advancements seen in nations with more open nuclear markets.

The Shanti Bill directly addresses these concerns. The new legislation allows private companies to engage in all aspects of the nuclear fuel cycle, from uranium exploration and mining to the construction and operation of nuclear power plants, subject to rigorous regulatory oversight by the Nuclear Regulatory Authority (NRA). This doesn't signify a complete abandonment of government control; the DAE will continue to play a crucial role in strategic decision-making, research and development, and maintaining overall safety and security standards. However, the bill facilitates a collaborative model where private entities can contribute expertise, capital, and technological innovation.

Early indicators suggest the Shanti Bill is already having the intended effect. Several major Indian conglomerates and international nuclear energy firms have announced preliminary agreements to explore joint ventures and invest in new nuclear power projects across the country. Analysts predict a surge in foreign direct investment (FDI) into the nuclear sector over the next five to ten years, potentially exceeding $20 billion. NPCIL, while remaining a key player, is actively seeking partnerships to accelerate the construction of its planned fleet of new nuclear reactors.

The expansion of nuclear power is seen as vital for India to meet its ambitious climate goals and energy demands. As the world transitions away from fossil fuels, nuclear energy offers a reliable, baseload power source with minimal carbon emissions. Currently, nuclear energy contributes approximately 3% to India's total electricity generation. The government aims to increase this to 9% by 2047, aligning with its commitment to net-zero emissions. The Shanti Bill is considered a pivotal step in achieving this target.

However, the liberalization of the nuclear sector isn't without its challenges. Ensuring robust safety standards and preventing the proliferation of nuclear materials remain paramount concerns. The NRA is currently undergoing a modernization drive to enhance its regulatory capabilities and to effectively oversee the activities of private sector participants. Public acceptance and addressing concerns surrounding nuclear waste management also require ongoing attention. Increased transparency and public education will be essential to build trust and foster broader support for nuclear energy.

The Shanti Bill also emphasizes the importance of indigenous technology development. While welcoming foreign investment and expertise, the legislation prioritizes the use of domestically developed nuclear technologies and encourages collaboration between public and private research institutions. This focus on self-reliance is expected to strengthen India's position as a global leader in nuclear innovation. The bill's passage represents not just a change in policy, but a fundamental shift in how India approaches its nuclear future - one characterized by collaboration, innovation, and a commitment to sustainable energy.