India Pushes Nuclear Expansion Through Landmark Shanti Act
India is preparing for a major transformation in its energy landscape through the newly introduced Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025. The legislation seeks to significantly expand the country’s nuclear energy capacity while reforming long-standing regulatory and liability frameworks. The government has set an ambitious target of achieving 100 GW of nuclear power capacity by 2047 as part of its broader strategy to strengthen energy security, diversify electricity generation, and meet long-term decarbonisation goals.
The reforms have also received international endorsement, with Rafael Mariano Grossi describing the new law as “very positive” for India’s nuclear future.
Background to India’s Nuclear Energy Strategy
India currently operates 20 nuclear reactors with an installed capacity of around 8.8 GW, contributing only about 3 percent of the country’s total electricity generation. Despite decades of nuclear development, the sector remained tightly controlled by the state under the Atomic Energy Act of 1962, with limited participation from private or foreign entities.
As India’s electricity demand continues to rise rapidly, policymakers increasingly view nuclear energy as a critical pillar of long-term energy planning. Nuclear power offers stable baseload electricity generation while supporting India’s commitment to achieve net-zero carbon emissions by 2070.
The government’s Nuclear Energy Mission aims to raise nuclear capacity to 100 GW by 2047 through a combination of indigenous reactors, advanced technologies, and international collaboration. The roadmap includes major contributions from Nuclear Power Corporation of India Limited through Pressurised Heavy Water Reactors and Light Water Reactors, alongside future deployment of Small Modular Reactors.
Key Differences Between the Shanti Act and 1962 Law
The SHANTI Act marks the biggest restructuring of India’s nuclear framework since independence by replacing both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.
One of the most significant changes is the opening of the civilian nuclear sector to private companies and foreign investment. Under the earlier law, the government maintained near-complete monopoly control over nuclear operations. The new framework now allows limited participation of non-state entities under regulatory supervision.
The legislation also gives statutory recognition to the Atomic Energy Regulatory Board, strengthening institutional oversight and regulatory transparency. Earlier, the regulator functioned without a dedicated statutory basis, often drawing criticism regarding autonomy and accountability.
Another major reform concerns liability rules. The earlier liability structure was viewed by many global investors as restrictive and uncertain. The SHANTI Act introduces revised liability caps ranging from ₹100,000 crore for smaller reactors to as high as ₹3,000,000 crore for large-scale reactors above 3,600 MW, creating a clearer framework for international participation.
Additionally, the law aligns foreign equity participation with existing investment norms, making India’s nuclear sector more accessible to global capital and technology partnerships.
Global Significance and Future Outlook
The endorsement from the International Atomic Energy Agency highlights growing international confidence in India’s nuclear ambitions. By opening the sector to private participation and modernising regulations, India aims to accelerate clean energy expansion while reducing dependence on fossil fuels.
A Transformational Shift Toward India’s Clean Energy Future
The SHANTI Act represents a decisive shift in India’s nuclear energy policy, combining regulatory reform, private participation, and ambitious capacity targets. If implemented effectively, the legislation could transform nuclear power into a major pillar of India’s energy future, supporting economic growth, climate commitments, and long-term strategic energy security.
(With agency inputs)
