The SHANTI Bill, 2025 cleared both houses of Parliament. SHANTI Bill – short for Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill – replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. Once the President gives her assent to the bill, it will become the SHANTI Act.
Prime Minister Narendra Modi said that the new law marks a “transformational moment” for India’s technology landscape. The law will provide a “decisive boost to a clean-energy future”.
Why does India want to expand its nuclear power?
India currently produces about 8,000 megawatts (MW) of electricity from nuclear power. The government wants to increase this to 22,000 MW by 2031 and 100 gigawatts (GW) by 2047. This expansion is important for three reasons:
1. Climate change: Nuclear power produces electricity without carbon emissions and supports India’s goal of achieving net zero emissions by 2070.
2. Reliable power: Nuclear energy provides steady electricity, which is needed for sectors like data centres, AI, and industry.
3. Private investment: The government believes that such a large expansion is not possible without private and foreign investment.
The SHANTI Bill also seeks to introduce Small Modular Reactors (SMRs), which are smaller, newer nuclear reactors used in many developed countries.
What problem is the government trying to solve?
The main problem has been foreign companies’ reluctance to invest in India’s nuclear sector. In 2008, India signed nuclear agreements with the US and France, expecting companies like Westinghouse and Areva to build reactors in India. However, this did not happen.
The reason lies in India’s nuclear liability law of 2010, which made not only the plant operator but also the equipment supplier liable in case of a nuclear accident. Foreign companies argued that this exposed them to unlimited legal risk, which is not the practice in most countries.
Because of this, no foreign supplier agreed to operate nuclear plants in India. At present, Russia’s Rosatom is the only foreign company involved in India’s nuclear power generation.
What does the SHANTI Bill change?
The SHANTI Bill repeals the old nuclear laws and introduces a new framework. Its key changes include:
Removal of supplier liability: Only the operator of the plant will be held responsible for accidents.
No access to civil courts: Victims of nuclear accidents will no longer be able to approach civil courts; instead, a government-appointed committee will decide compensation.
Lower penalties and liability caps: Compensation for nuclear damage is capped at ₹3,000 crore, and penalties for violations are limited.
According to the government, these steps are necessary to attract foreign investors and revive stalled nuclear projects.
Why are experts and opposition parties worried?
Critics have raised several concerns:
1. Lack of debate: They argue that the Bill was rushed through Parliament without proper discussion or review by Standing Committees.
2. Safety and accountability: Removing supplier liability may reduce accountability if accidents occur due to faulty equipment or design.
3. Access to justice: Taking away the right to approach civil courts could weaken the rights of victims.
4. Underestimating risks: Past disasters like the Fukushima nuclear accident in Japan (2011) cost over $200 billion to manage, far more than India’s proposed liability limits.