The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 was passed by the Lok Sabha on December 17 and by the Rajya Sabha on December 18, 2025, before receiving Presidential assent from President Droupadi Murmu on December 20, 2025. The Bill repeals two foundational laws — the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 — and consolidates India's nuclear legal framework for the first time in over six decades. The most significant reform is the opening of India's nuclear energy sector to limited private participation. Under the SHANTI Act, Indian private companies and their joint ventures with government entities may now obtain licences to generate nuclear energy, handle nuclear fuel, and engage in equipment manufacturing — including uranium conversion, refining, and enrichment up to a government-specified threshold. However, 'sensitive' activities such as weapons-related nuclear processes remain exclusively under government control. The Act grants statutory recognition to the Atomic Energy Regulatory Board (AERB) as India's nuclear regulator — a long-pending reform that strengthens its independence and oversight authority. A graded liability framework replaces the previous flat statutory cap on operator liability, with limits varying by the type and characteristics of the nuclear installation. The legislation aligns with India's commitment to increase nuclear power capacity to 100 GW by 2047 as part of its clean energy transition goals and 'net zero by 2070' pledge. Opposition members walked out of the Lok Sabha during voting, demanding referral to a Joint Parliamentary Committee or Standing Committee for deeper scrutiny.
Parliament Passes SHANTI Bill 2025: India Opens Nuclear Energy Sector to Private Participation, Replaces 63-Year-Old Atomic Energy Act
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 was passed by the Lok Sabha on December 17 and by the Rajya Sabha on December 18, 2025, before receiving Presidential assent from President Droupadi Murmu on December 20, 2025. The Bill repeals two foundational laws — the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 — and consolidates India's nuclear legal framework for the first time in over six decades. The most significant reform is the opening of India's nuclear energy sector to limited private participation. Under the SHANTI Act, Indian private companies and their joint ventures with government entities may now obtain licences to generate nuclear energy, handle nuclear fuel, and engage in equipment manufacturing — including uranium conversion, refining, and enrichment up to a government-specified threshold. However, 'sensitive' activities such as weapons-related nuclear processes remain exclusively under government control. The Act grants statutory recognition to the Atomic Energy Regulatory Board (AERB) as India's nuclear regulator — a long-pending reform that strengthens its independence and oversight authority. A graded liability framework replaces the previous flat statutory cap on operator liability, with limits varying by the type and characteristics of the nuclear installation. The legislation aligns with India's commitment to increase nuclear power capacity to 100 GW by 2047 as part of its clean energy transition goals and 'net zero by 2070' pledge. Opposition members walked out of the Lok Sabha during voting, demanding referral to a Joint Parliamentary Committee or Standing Committee for deeper scrutiny.
Key facts
- SHANTI Bill 2025 received Presidential assent on December 20, 2025 after passing both Houses of Parliament.
- It repeals the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.
- Indian private companies can now obtain licences for nuclear energy generation and fuel handling.
- The Atomic Energy Regulatory Board (AERB) received statutory recognition as independent nuclear regulator.
- A graded liability framework replaces the previous flat statutory cap on operator liability.
- India targets 100 GW nuclear power capacity by 2047 aligned with net-zero by 2070 pledge.
PYQPrelims/PYQ angle
- RAS 2024 Government's futuristic roadmap for nuclear energy (Budget 2025-26) — Both examine India's nuclear energy policy reform trajectory and private-sector participation goals.
Mains angle
Q: Examine the key reforms introduced by the SHANTI Bill 2025 in India's nuclear energy framework and assess their implications for the 100 GW nuclear capacity target by 2047.
Answer (50 words):
The SHANTI Act, 2025 (passed December 17-18, 2025; presidential assent December 20) repeals the Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act, 2010. It permits limited private participation in nuclear generation, grants statutory recognition to AERB, adopts graded liability, and aligns with India's 100 GW by 2047 target.
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Which statement correctly describes the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025?
The SHANTI Bill, 2025 was introduced in Lok Sabha on 15 December 2025, passed by Lok Sabha on 17 December and by Rajya Sabha on 18 December 2025. Its significance was that it allowed regulated private participation in parts of India's civil nuclear energy sector. The other options misstate the bill's purpose, year and subject.
Source: PRS India / LiveLaw / World Nuclear News / DD News / IDSA / Holtec International
Frequently asked questions
What does the full form of SHANTI stand for and what is the significance of this Act for India?
SHANTI stands for Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India. The Act is significant because it opens India's nuclear energy sector to private participation for the first time, replaces the 63-year-old Atomic Energy Act of 1962, and consolidates India's nuclear legal framework to help achieve the target of 100 GW nuclear capacity by 2047.
Which two earlier laws did the SHANTI Bill 2025 repeal and when did it receive Presidential assent?
The SHANTI Bill 2025 repealed the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. It was passed by the Lok Sabha on December 17, by the Rajya Sabha on December 18, and received Presidential assent from President Droupadi Murmu on December 20, 2025.
What new role has the Atomic Energy Regulatory Board (AERB) been given under the SHANTI Act?
Under the SHANTI Act, the Atomic Energy Regulatory Board (AERB) received statutory recognition as an independent nuclear regulator. This gives AERB a firm legal standing to oversee safety, licensing, and regulation of both public and private nuclear energy operations in India.
What is the graded liability framework introduced by SHANTI and how does it differ from the earlier law?
The SHANTI Act replaced the flat statutory cap on operator liability under the Civil Liability for Nuclear Damage Act, 2010 with a graded liability framework, where the extent of liability varies according to the scale and type of nuclear installation. This makes the compensation system more proportionate and is intended to improve investor confidence in the nuclear sector.
What is India's nuclear capacity target and how does it align with its climate commitments?
India targets 100 GW of nuclear power capacity by 2047, the centenary of independence, as part of its clean energy transition. This goal is aligned with India's net-zero by 2070 pledge made at COP26, as nuclear power provides carbon-free baseload electricity to complement solar and wind energy.
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