India is planning a major change in its nuclear energy laws. On December 17, the Lok Sabha passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (Shanti) Bill, 2025.
The Bill aims to modernise India’s nuclear sector. It also opens the door for private companies to enter nuclear power generation. The government says this move is necessary to ensure clean, stable and reliable energy for the future.
If the Bill becomes law, it will replace two old laws — the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. In their place, one combined law will govern nuclear power generation, safety rules, liability, compensation and other uses of nuclear technology.
While the government supports the Bill strongly, opposition parties have raised concerns about safety, accountability and private control.
What Is the Shanti Bill?
The Shanti Bill creates a single law to regulate all nuclear activities in India. This includes how nuclear energy is produced, used and monitored.
The Bill is not limited to electricity generation. It also covers the use of nuclear technology in health care, agriculture, industry and scientific research.
At present, different laws control licensing, safety checks and liability. The Shanti Bill brings all these areas under one unified legal framework.
Why Is the Shanti Bill Important for India?
The government wants to expand nuclear power on a large scale over the next 20 years. This plan includes building Small Modular Reactors and new reactors designed in India.
According to the Centre, private companies are needed to bring in fresh investment, modern technology and faster project execution. Without private participation, the government believes nuclear expansion will move slowly.
Why Does India Need a New Nuclear Law Now?
Until now, nuclear power in India has been mostly controlled by government-owned companies. Private players had very little role.
The Centre says this system was created for a smaller nuclear programme and can no longer meet India’s growing energy needs.
During the Lok Sabha debate, Jitendra Singh, Minister of State for Atomic Energy, described the Bill as a “historic” reform. He said it would help reduce dependence on fossil fuels and provide clean power round the clock. He also referred to Homi Bhabha’s vision and linked the Bill to Prime Minister Narendra Modi’s long-term energy and climate goals.
The government added that the Bill supports India’s aim of achieving net-zero emissions by 2070 and will help industries that need continuous and stable power.
How Will Private Companies Enter Nuclear Power Generation?
One of the biggest changes in the Bill is allowing private companies to take part in nuclear power generation.
So far, nuclear power plants have mainly been built and run by government companies such as the Nuclear Power Corporation of India.
Under the new law, Indian private companies and joint ventures approved by the central government can apply to build, own, operate and decommission nuclear power plants. They can also carry out related activities such as fuel storage.
However, foreign companies or firms controlled from outside India will not be allowed. Sensitive activities like uranium enrichment and spent fuel reprocessing will remain strictly under government control.
How Will Nuclear Safety and Regulation Be Managed?
The Bill gives legal authority to the Atomic Energy Regulatory Board (AERB), which oversees nuclear safety in India.
The AERB will set safety standards, regulate radiation levels, inspect facilities and ensure compliance. It will also have the power to suspend or cancel licences if operations are unsafe or against public interest.
To handle disputes, the Bill proposes an Atomic Energy Redressal Advisory Council. Final appeals can go to the Appellate Tribunal for Electricity and the Supreme Court.
How Will Nuclear Accident Liability and Compensation Work?
The Bill keeps the no-fault liability rule. This means victims of a nuclear accident will not need to prove negligence to receive compensation.
The operator of the nuclear plant will be mainly responsible for damages, within fixed limits. Operators must maintain insurance or financial security.
If damages exceed the operator’s limit, the central government will step in under certain conditions. The Bill also proposes a Nuclear Damage Claims Commission to decide compensation claims.
A major change is that equipment suppliers will no longer have automatic legal liability. Operators can seek compensation from suppliers only if the contract allows it or if damage was caused deliberately.
Why Is Supplier Liability Being Criticised?
Congress MP Manish Tewari opposed the Bill and asked for it to be referred to a Joint Parliamentary Committee for detailed review. He said the Bill does not clearly explain how independent the nuclear safety regulator will be. He also questioned why suppliers would face no liability even if faulty equipment caused a nuclear accident. Tewari said the opposition walked out of the Lok Sabha after the government failed to address these concerns.
Congress MP Shashi Tharoor also criticised the Bill in Parliament, calling it a “dangerous leap into privatised nuclear expansion”. He warned that business interests should not come before public safety, environmental protection and victims’ rights. Tharoor questioned the Centre’s power to allow “any company or person” into nuclear activities and said the liability cap is too low when compared to disasters like Fukushima and Chernobyl. He also criticised the claim that nuclear energy is “clean and abundant” without properly addressing long-term risks.
What Happens Next to the Shanti Bill?
The Lok Sabha has passed the Shanti Bill. It will now be taken up by the Rajya Sabha. Only if the Rajya Sabha approves the Bill can it become law.
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