The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 marks a paradigm shift in India’s nuclear energy policy by transitioning from a state-controlled model to a mixed model involving private and foreign participation. It seeks to accelerate nuclear capacity expansion to achieve energy security and climate goals.
KEY PROVISIONS OF THE SHANTI ACT:
- The Act permits private sector participation, allowing private firms and joint ventures to build, own, operate, and decommission nuclear power plants, thereby ending the government monopoly.
- It introduces a unified legal framework by replacing earlier legislations such as the Atomic Energy Act, 1962, and revising provisions of the Civil Liability for Nuclear Damage Act, 2010, to streamline regulatory processes.
- The Act establishes a revised liability structure, wherein liability is primarily channelled to the operator, with caps on financial liability and removal of the supplier’s “right of recourse,” improving investor confidence.
- It grants statutory status to the Atomic Energy Regulatory Board (AERB), thereby strengthening the regulatory and safety oversight mechanism.
- While liberalising the sector, the government retains strategic control over nuclear materials, fuel cycle activities, and radioactive waste management, ensuring national security.
EXPECTED IMPACT:
- The Act is expected to enhance energy security by enabling large-scale generation of reliable, low-carbon baseload power to complement renewable energy.
- It is likely to attract significant domestic and foreign investment, addressing the high capital requirements needed to achieve the target of 100 GW nuclear capacity by 2047.
- The reforms will promote technological advancement, particularly in emerging areas such as Small Modular Reactors (SMRs) and advanced nuclear systems.
- It facilitates greater global collaboration, aligning India’s liability framework with international norms and enabling partnerships with countries such as the United States, France, and Japan.
- The Act aims to improve efficiency in project execution by reducing bureaucratic delays associated with a government-only model.
CONCLUSION:
The SHANTI Act represents a structural transformation of India’s nuclear energy policy, balancing liberalisation with strategic control. However, its long-term success will depend on ensuring robust safety standards, regulatory independence, and equitable liability mechanisms while scaling up capacity.
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