The Union Cabinet has approved the SHANTI Bill 2025, enabling regulated private sector participation in nuclear power generation.
Key Features of the bill
- Private Participation: Opens the nuclear sector to private companies across the value chain, ending the exclusive monopoly of the Department of Atomic Energy.
- Unified Legal Framework: Consolidates existing laws into a single, comprehensive statute to enhance regulatory clarity and investor confidence.
Significance of Private Sector Participation
- Resource Mobilisation: Private participation expands capital availability, attracting domestic and global investment and supporting India’s long-term target of 100 GW nuclear capacity by 2047.
- Technological Innovation: Private sector entry accelerates adoption of advanced technologies such as Small Modular Reactors (SMRs), modular reactor designs and modern safety systems.
- Energy Security: Private sector capacity augments generation, manufacturing and supply-chain resilience, reducing dependence on fossil fuels.
Challenges to Private Sector Participation
- Safety and Liability Issues: Heavy liability under Civil Liability for Nuclear Damage Act (CLNDA) 2010 deter private suppliers and investors.
- National Security Risks: Private involvement requires stronger safeguards, and traceability due to sensitive materials and technology.
- Long Project Timelines: Nuclear plants have 7 to 10 year gestation periods, reducing investor interest without viability-gap or risk-sharing mechanisms.
