New Delhi – The Lok Sabha on Wednesday passed The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, commonly known as the SHANTI bill, via voice vote amid strong opposition protests. The landmark legislation marks a significant shift in India’s nuclear energy policy by allowing private sector participation in nuclear power generation.
Key Provisions of the SHANTI Bill
The SHANTI bill introduces transformative changes to India’s nuclear energy framework. The legislation proposes granting licenses to private companies to operate nuclear power plants, removing an existing contentious liability clause for suppliers of fuel and technology, and rationalizing payout levels by operators in case of accidents. The primary objective of the SHANTI bill is to boost investments in the nuclear power sector, helping India achieve its ambitious target of 100 GW of nuclear power capacity by 2047.
Union minister for state for atomic energy Jitendra Singh, who introduced the SHANTI bill earlier in the week, defended the provisions during parliamentary debate. The minister emphasized that most security provisions have been retained from the Jawaharlal Nehru-era’s 1962 law on atomic energy, ensuring continuity in safety standards.
Opposition Demands Parliamentary Panel Scrutiny
The passage of the SHANTI bill was marked by intense opposition protest. Opposition members demanded that the legislation be referred to a parliamentary panel for comprehensive scrutiny before being passed. Unable to convince the government, opposition members staged a walkout before the voice vote was conducted.
Congress leader Manish Tewari, who initiated the debate on the SHANTI bill, characterized the legislation as “privatising profit and socialising liability.” He questioned the absence of supplier liability provisions and raised concerns about increased foreign supplier presence if the nuclear sector opens up.
Congress MP Shashi Tharoor dubbed the SHANTI bill as a “dangerous leap into privatised nuclear expansion,” pointing out that the legislation doesn’t allow civilians, non-governmental organizations, or even state governments to sue an operator in case of an accident. Tharoor questioned whether it was a “nuclear bill or an unclear bill,” expressing concerns about public safety and environmental protection.
Removal of Supplier Liability Clause
A controversial aspect of the SHANTI bill involves repealing the Atomic Energy Act 1962 and the Civil Liability for Nuclear Damage Act 2010. The legislation removes a clause in the CLND Act that gave nuclear power plant operators the right of recourse against suppliers in cases where damage resulted from supplier actions, including supply of equipment with defects or substandard services.
Global suppliers of components and fuel had expressed concerns about the previous law allegedly allowing action against suppliers in case of damage. The government proposed completely eliminating this clause through the SHANTI bill to allay their concerns. This section had been a major deterrent for several US companies considering investments in India’s nuclear sector.
Minister Jitendra Singh explained that the SHANTI bill addresses supplier concerns while maintaining operator accountability. “The suppliers’ responsibility will lie with the operator, who is free to have an agreement. Earlier, the word suppliers had a broad definition and as a result, everybody was hesitant to come forward. In the last ten years, we lost out on opportunities,” Singh told the Lok Sabha.
Liability Rationalization and Nuclear Fund
The SHANTI bill rationalizes liability provisions through a graded system. While liability remains capped for operators, full compensation will be ensured through a Nuclear Liability Fund to be established by the Union government. This two-tier approach aims to balance industry concerns with victim protection.
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Singh clarified that the 2010 bill had liability capping, but the SHANTI bill has rationalized it with different grading levels. The nuclear fund mechanism ensures additional compensation beyond operator liability limits.
Private Sector Participation and Investment Rationale
The SHANTI bill permits companies, joint ventures, or entities expressly permitted by the central government to construct, own, operate, or decommission nuclear power plants after receiving appropriate licenses requiring safety authorization on radiation exposure. However, enrichment of nuclear fuel, management of spent fuel, and production of heavy water will remain exclusively with the central government or government-owned entities.
Defending private sector participation enabled by the SHANTI bill, Singh argued that achieving the 100 GW target requires substantial investments beyond government capacity. He highlighted that the department of atomic energy’s budget increased from ₹13,879 crore in 2014 to ₹37,483 crore currently. “If we have to follow a global role for ourselves, we have to follow global strategies. We opened up space. Now we have 300-400 space start ups,” Singh stated.
Currently, India has 8-9 GW of nuclear capacity from 25 reactors, contributing just 3% to the energy mix. The SHANTI bill aims to dramatically scale up this capacity to meet clean energy commitments and support various sectors including health and agriculture.
Indian conglomerates, including the Adani Group, Larsen & Toubro, and Tata Power Ltd, have previously expressed interest in entering nuclear power generation, making the SHANTI bill particularly significant for corporate India.
