What does the SHANTI Bill really change for India’s nuclear sector? | Explained
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New Delhi: Parliament has cleared the Sustainable Harnessing and Advancement of Nuclear Energy in India (SHANTI) Bill, marking one of the most significant shifts in India’s nuclear policy since independence. The legislation aims to modernise the sector, open limited space for private participation, and accelerate nuclear power generation to meet India’s long-term energy security goals. However, the Bill has also triggered sharp opposition, with critics warning of safety, accountability, and dilution of public oversight.
How Open Is India’s Nuclear Sector Now?
Until now, India’s nuclear power sector has remained almost entirely State-controlled under the Atomic Energy Act, 1962. Only government-owned entities like the Nuclear Power Corporation of India Limited (NPCIL) were permitted to operate nuclear facilities.
The SHANTI Bill does not privatise nuclear power, but it allows private Indian companies to participate as partners in construction, equipment supply, operations support, and financing, particularly in Small Modular Reactors (SMRs) and advanced pressurised water reactors. Foreign firms can collaborate through technology transfer and joint ventures, but ownership and control remain with the Indian State.
What Role Will Private Firms Play?
Private firms will mainly support design, manufacturing, project execution, and maintenance, while the government retains operational authority. The aim is to reduce project delays, improve efficiency, and attract advanced nuclear technology without surrendering strategic control.
To support this shift, the government has announced ₹20,000 crore under the Nuclear Energy Mission, focused on SMRs and next-generation reactors.
What Powers Does the AERB Get?
The Bill strengthens the Atomic Energy Regulatory Board (AERB) by granting it clearer statutory authority. It can now issue binding safety directives, impose penalties, halt operations in case of violations, and oversee private-sector-linked projects more independently than before.
This change is intended to reassure investors while maintaining safety standards.
How Has Nuclear Liability Changed?
One of the biggest deterrents for foreign and private companies was the Civil Liability for Nuclear Damage Act, 2010, which placed supplier liability beyond global norms. The SHANTI Bill introduces risk-sharing mechanisms and insurance-backed frameworks, aligning India more closely with international conventions while keeping operator liability intact.
Why Is the Opposition Opposing SHANTI?
Opposition parties argue that the Bill weakens public accountability, exposes citizens to safety risks, and opens the door to “backdoor privatisation.” They demanded a Select Committee review, warning that changes to liability laws could reduce compensation rights in case of nuclear accidents.
The government, however, insists the reforms are essential for clean energy expansion and strategic self-reliance.
Our Thoughts
The SHANTI Bill represents a cautious but consequential recalibration of India’s nuclear policy. While concerns over safety and accountability deserve scrutiny, the reforms reflect a growing recognition that energy security and climate goals cannot be met without controlled innovation and collaboration. The real test will lie in implementation, oversight, and transparency.
