Published: 26 December 2025PRS Legislative ResearchGovernance
SHANTI Act and VB-G RAM G Act 2025: India Privatises Nuclear Sector, Revamps Rural Employment Guarantee
The Winter Session of Parliament (December 2025) witnessed the passage of two landmark Bills that received Presidential assent on December 20, 2025: the Strategic Harnessing of Atomic energy for National Transformation and Innovation (SHANTI) Act and the Vibrant Bharat Grameen Rozgar Maha Guarantee (VB-G RAM G) Act.
The SHANTI Act replaces the Atomic Energy Act of 1962, ending over six decades of state monopoly in India's nuclear sector. The legislation opens civil nuclear energy to private players for the first time, enabling private companies, subject to stringent safety regulations and licensing by the Atomic Energy Regulatory Board (AERB), to invest in and operate nuclear power plants. The move is aimed at accelerating India's clean energy transition and meeting the ambitious target of 100 GW of nuclear capacity by 2047. India currently has 22 operational reactors producing about 7,480 MW. By attracting private capital and technological expertise, the government aims to close the investment gap that public funding alone cannot bridge. Strategic partnerships with global nuclear technology providers are also envisaged under the new framework.
The VB-G RAM G Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005. Key changes include an increase in guaranteed workdays from 100 to 125 days per household per year, and a revised Centre-State cost-sharing ratio of 60:40, aligning fiscal responsibility more equitably between the Union and state governments. The new scheme broadens the scope of permissible work to include green infrastructure — such as farm ponds, watershed management, and solar installations — and strengthens gram panchayat's role in planning and monitoring. Both Acts signal a structural shift in India's governance approach — welcoming private enterprise into previously state-dominated sectors while reinforcing social safety nets with enhanced commitments.
Mains angle
Q: Discuss the structural shifts introduced by the SHANTI Act and the VB-G RAM G Act of 2025, explaining how they redefine private participation in the nuclear sector and the rural employment guarantee.
Answer (50 words):
Both Acts received Presidential assent on December 20, 2025. The SHANTI Act replaces the Atomic Energy Act 1962, opening civil nuclear energy to private players to reach 100 GW by 2047. The VB-G RAM G Act replaces MGNREGA, raising guaranteed workdays from 100 to 125 and setting Centre-State sharing at 60:40.
6-axis classification
CoverageNationalTypeProgrammeSubjectNationalExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePRS Legislative Research
Frequently asked questions
What does the SHANTI Act replace and what is its key reform?
The SHANTI Act replaces the Atomic Energy Act 1962, which had maintained a state monopoly in India's nuclear sector for over six decades. Its key reform is opening the civil nuclear energy sector to private players, allowing private companies to invest in and operate nuclear power plants under AERB licensing.
What is India's nuclear capacity target under the new nuclear policy?
India targets 100 GW of nuclear capacity by 2047. At December 2025, DAE stated present installed nuclear power capacity as 8,780 MW, excluding RAPS-1. The SHANTI Act aims to attract private capital to bridge the investment gap needed to achieve this target.
How does VB-G RAM G differ from MGNREGA?
VB-G RAM G (Vibrant Bharat Grameen Rozgar Maha Guarantee) replaces MGNREGA by increasing guaranteed workdays from 100 to 125 per household per year, revising the Centre-State cost-sharing ratio to 60:40, expanding the scope of permissible works to include green infrastructure, and strengthening gram panchayat oversight.
What is the significance of the 60:40 Centre-State ratio in VB-G RAM G?
The 60:40 ratio means the Central government bears 60% of the scheme's costs and states bear 40%. This is a change from MGNREGA's existing cost-sharing structure and aims to distribute fiscal responsibility more equitably, incentivising states to actively manage the scheme's implementation.
When did both Acts receive Presidential assent and in which Parliamentary session?
Both the SHANTI Act and VB-G RAM G Act received Presidential assent on December 21, 2025, during the Winter Session of Parliament (December 2025).