Atomic Energy Bill 2025 (SHANTI Bill)
Overview
The Union Cabinet has approved the Atomic Energy Bill 2025, branded as SHANTI – Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India.
Most significant reform in India’s nuclear sector since the Atomic Energy Act, 1962.
Breaks the decades-old monopoly of the Department of Atomic Energy (DAE).
Enables private sector participation and greater foreign investment in civil nuclear energy.
Rationale for Reform
Energy Security and Climate Commitments
India targets net-zero emissions by 2070.
Nuclear provides reliable baseload power, needed as coal plants retire and renewables expand.
Current grid instability due to intermittency of solar/wind makes nuclear essential.
Massive Scaling Requirement
Target: 100 GW nuclear capacity by 2047 (from 8.8 GW today).
Intermediate target: 22,000 MW by 2032.
Capital Constraints
Nuclear projects are capital-intensive; the government alone cannot fund the required expansion.
Hence, private and foreign capital becomes necessary.
Under-utilisation of the Indo-US Nuclear Deal
Commercial outcomes of the 2008 Civil Nuclear Agreement have been limited due to liability issues.
Reforms aim to revive international cooperation.
Key Provisions of the SHANTI Bill
A. Opening Up to Private Participation
Private companies can now participate in:
Exploration and mining of atomic minerals
Fuel fabrication
Nuclear equipment manufacturing
R&D, especially Small Modular Reactors (SMRs)
Selected non-sovereign aspects of plant operations
Up to 49% minority equity in nuclear power projects
NPCIL retains ownership and operational control
B. Modern Legal Framework
Overhauls the Atomic Energy Act, 1962.
Consolidates fragmented laws into a unified regulatory framework.
Streamlines licensing, technology approvals, procurement, and compliance.
C. Regulatory Reforms
Establishes a new independent nuclear safety authority.
Separates policy, regulatory, and operational roles.
Aligns India with global nuclear safety norms.
D. Nuclear Liability Reforms
Proposed changes include:
Insurance-backed caps on supplier liability
Government backstop funding
Clarified roles of operator and supplier under the CLNDA (2010)
Moves toward alignment with international liability conventions.
Government backstop funding refers to a financial assurance mechanism where the government guarantees payment if the private sector (operator or supplier) cannot cover the full liability arising from a nuclear accident.
It is essentially a safety net or last-resort fund provided by the government to support liability compensation beyond what insurance or private capital can cover.
Purpose:
To encourage participation by foreign suppliers like Westinghouse (US), EDF (France), Rosatom (Russia).
Small Modular Reactors (SMRs)
Significance
Central to India’s future nuclear strategy.
Enable faster deployment, lower costs, and flexible grid integration.
India’s SMR Pipeline (BARC Designs)
BSR – 220 MWe (PHWR)
BSMR – 200 MWe (LWR)
SMR-55 – 55 MWe (LWR)
All developed indigenously.
Government Targets
₹20,000 crore R&D outlay announced.
At least 5 SMRs operational by 2033.
Potential captive use by industries: steel, cement, data centres.
Private Sector Interest
Reliance, Tata Power, Adani, JSW Energy, Hindalco, Jindal Steel, etc.
Around 16 potential SMR sites identified across India.
Institutional and Operational Vision
NPCIL’s Role
Retains ownership and operation of plants.
Will contribute 50% of the 100 GW target.
Plans to commission one new reactor every year.
Private Sector Role
Funding
Technology partnerships
Manufacturing ecosystem development
Industrial off-take through captive power agreements
Opportunities Created by SHANTI Bill
A. Energy Security
Diversifies India’s energy mix.
Reduces dependence on fossil fuels.
Strengthens baseload capacity for renewable-rich grids.
B. Decarbonisation
Positions nuclear as a backbone of India’s climate transition.
Helps meet net-zero goals with reliable low-carbon power.
C. Economic and Technological Gains
Opens a multi-billion-dollar market for domestic and global companies.
Stimulates R&D and manufacturing in nuclear technologies.
Enhances India's technological leadership.
D. International Collaboration
Improves prospects for India–US, India–France, India–Russia civil nuclear cooperation.
Attracts global sovereign wealth funds (especially West Asia).
Challenges Ahead
A. Safety and Public Acceptance
Nuclear risk perceptions remain high.
Independent regulator must be credible and robust.
B. Liability Clarity
Aligning reforms without diluting victim compensation is difficult.
Balancing investor confidence and safety obligations is crucial.
C. Project Viability
High upfront costs
Long construction timelines
Issues around cost recovery and tariffs
D. Fuel Security
Long-term uranium supply arrangements must be secured.
Domestic mining and fabrication capacity must expand.
E. Regulatory Capacity
The new framework requires strong technical expertise.
Prelims Practice MCQs
Q. With reference to the Atomic Energy Bill 2025 (SHANTI Bill), consider the following statements:
It allows private sector participation in activities such as exploration of atomic minerals and fuel fabrication.
It replaces and consolidates provisions originally contained in the Atomic Energy Act, 1962.
It proposes an independent nuclear safety authority separate from the Department of Atomic Energy.
How many of the above statements are correct?
A. Only one
B. Only two
C. All three
D. None
Correct Answer: C (All three)
Explanation:
Statement 1 is correct: The SHANTI Bill explicitly opens the nuclear ecosystem to private players, allowing them to enter exploration, mining of atomic minerals, fuel fabrication, equipment manufacturing, and selected operational roles.
Statement 2 is correct: SHANTI consolidates and modernises provisions of the Atomic Energy Act, 1962, replacing outdated clauses and creating a unified framework.
Statement 3 is correct: A new independent nuclear safety authority is proposed to strengthen oversight, replacing the earlier model where safety oversight was closely tied to the Department of Atomic Energy.
All three are supported by the official reporting.
Q. Why has India proposed major reforms through the SHANTI Bill despite having indigenous nuclear reactor technology?
The expansion of nuclear energy to 100 GW by 2047 requires capital far beyond public resources.
Foreign suppliers control critical next-generation reactor designs needed for grid decarbonisation.
Nuclear energy is essential for baseload stability when renewable penetration increases.
Select the correct answer:
A. 1 and 3 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Correct Answer: A
Explanation:
Statement 1 is correct: India’s target of 100 GW nuclear capacity demands investment that government budgets alone cannot provide; hence private and foreign capital is essential.
Statement 2 is incorrect: India has robust indigenous designs (PHWR, SMR prototypes). Foreign technology is welcome, but India does not depend entirely on foreign next-gen reactors.
Statement 3 is correct: Nuclear is stable baseload power—needed as renewable penetration rises and thermal plants decline.
Hence, 1 and 3 only.
Q. In the context of India’s nuclear liability reforms, which of the following is proposed?
Introduction of insurance-backed caps on supplier liability
Removal of the operator’s “right of recourse” entirely
Government support in the form of backstop funding
Alignment of Indian law with international nuclear liability conventions
Select the correct answer:
A. 1, 3 and 4 only
B. 1 and 2 only
C. 2 and 4 only
D. 1, 2, 3 and 4
Correct Answer: A
Explanation:
Statement 1 is correct: The SHANTI framework proposes insurance-backed liability pools.
Statement 2 is incorrect: India is not removing the right of recourse, only clarifying limits.
Statement 3 is correct: Government backstop funds are proposed to reduce supplier risk.
Statement 4 is correct: India intends to align more closely with international conventions to attract foreign vendors.
Thus 1, 3, 4 only.
Q. Small Modular Reactors (SMRs) are central to India’s nuclear strategy because:
They require shorter construction time due to modular factory-built components.
They can provide captive baseload power for industries like data centres and steel.
India currently has no indigenous SMR designs under development.
Select the correct answer:
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Correct Answer: A
Explanation:
Statement 1 correct: SMRs are modular; factory fabrication reduces construction time.
Statement 2 correct: They are targeted for industrial decarbonisation and captive baseload.
Statement 3 incorrect: India has multiple indigenous SMR designs under development (BSR-220, BSMR-200, SMR-55).
Hence 1 and 2 only.