The Narendra Modi-led government is preparing to introduce the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, in Parliament, marking a significant shift by permitting private sector participation in India's nuclear energy ecosystem. The legislation aims to enable companies or joint ventures to build, own, operate, and decommission nuclear power plants or reactors, while also allowing private involvement in nuclear fuel fabrication, including conversion, refining, and limited uranium-235 enrichment as notified by the Centre.
The bill outlines clear liability provisions for operators, holding them responsible for nuclear incident damages except in cases of grave natural disasters of exceptional character, armed conflict, civil war, insurrection, or terrorism. Operators are exempted from liability for damages to the under-construction installation itself, related on-site properties, or transport means carrying nuclear material at the time of an incident. The maximum liability per incident is set at the rupee equivalent of 300 million Special Drawing Rights, or a higher amount specified by the government.
Certain sensitive activities remain exclusively under government control, including enrichment or isotopic separation of prescribed substances, management of spent fuel (such as reprocessing and recycling), handling of high-level radioactive waste, and production or upgrading of heavy water. The legislation emphasises that source and fissile materials must stay under Central Government surveillance for accounting and safeguards, with spent fuel required to be delivered to the government for management or repatriation.
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Private entities will be permitted to engage in transport, storage, import, export, acquisition, or possession of nuclear fuel and prescribed substances, as well as related technologies and software. This framework seeks to harness nuclear energy potential through public-private collaboration, boosting domestic industry participation in global research, manufacturing, finance, insurance, and skill development.
The SHANTI Bill reflects India's push to expand clean energy capacity amid growing demand, leveraging private investment while maintaining strict governmental oversight on proliferation-sensitive processes. If passed, it could accelerate nuclear power development, contributing to energy security and net-zero goals.
As the bill heads to Parliament, stakeholders anticipate debates on safety standards, liability caps, and balancing commercial interests with national security imperatives in this highly regulated sector.
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