What is the SHANTI/Nuclear Energy Bill 2025?

India’s nuclear energy sector has entered a critical phase of transformation. On December 20, 2025, the President of India granted assent to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This legislation constitutes the most important reform of India’s nuclear governance framework since independence.

Significance of nuclear energy for India

India's nuclear expansion aligns with its overall intention to achieve at least 500 GW of non-fossil fuel-based energy by 2030 and achieve net zero carbon emissions by 2070. A budget of ₹20,000 crores has been allocated in the Union Budget of 2025-26 for the government to support the nuclear energy mission with a preliminary focus on building, researching, and deploying small modular reactors. At least five advanced domestic reactors are expected to be online by the end of 2033.

What is the SHANTI or Nuclear Energy Bill 2025?

The SHANTI Bill, 2025 consolidates India’s nuclear laws into an exclusive statute governing production, regulation, safety, and liability related to nuclear energy and ionising radiation. The legislation reflects acknowledgement that earlier laws, particularly the Atomic Energy Act of 1962, were misaligned with the latest energy security needs and nuclear market practices. The Bill was introduced in the Lok Sabha on December 15, 2025, approved on December 17, 2025, passed by the Rajya Sabha on December 18, 2025, and was granted Presidential assent on December 20, 2025. The expedited legislative process indicates powerful political consensus on nuclear energy as a strategic national priority.

Key features of the SHANTI Bill

• The SHANTI Bill opens India’s nuclear sector to private companies and joint ventures, allowing them to construct, own, operate, and decommission nuclear power plants under a licensing and safety regime, while retaining government control over fuel cycle activities. 
• It also grants legal status to the Atomic Energy Regulatory Board, which helps to strengthen regulatory independence, enforce decisions, and align with global nuclear governance standards. 
• The bill introduces a framework linked to reactor size, replacing the earlier uniform liability cap and providing clearer risk allocation for investors. 
• The bill also helps to remove supplier liability and establishes a government backed fund to cover claims beyond operator limits. This improves India’s attractiveness to global technology providers and insurers.

Conclusion

The SHANTI Bill, 2025, is a pivotal development in India's governance of nuclear energy. As a Bill seeking to dismantle regulatory monopoly and permit residual regulatory control, the SHANTI Bill ends the state's previous de facto monopoly on developing and operating nuclear reactors. For many investors, the legislation provides an important measure of clarity regarding the necessary regulatory requirements for making long-term investment commitments to develop and operate nuclear reactors. Despite remaining concerns about sufficient liability coverage, adequate regulatory capacity, and continued transparency of nuclear development, the Bill is extremely likely to enable India to soon achieve its target of having 100 gigawatts of nuclear capacity by 2047 and improve energy security and the progress toward carbon free energy generation by 2030.