India’s pursuit of clean, reliable, and scalable energy has brought nuclear power back into sharp policy focus. Against the backdrop of rising electricity demand, climate commitments, and the need to reduce dependence on fossil fuels, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act has emerged as a proposed legislative pivot. The Act seeks to modernise India’s nuclear governance framework, unlock stalled capacity growth, and align nuclear energy with India’s long-term development and decarbonisation goals.

This explainer examines what the SHANTI Act is, which laws it replaces, what nuclear capacity it targets, and whether Small Modular Reactors (SMRs) are central to India’s nuclear future.

Why India needs a new nuclear law

India was among the earliest countries to recognise nuclear energy as a strategic sector. However, despite decades of investment and expertise, nuclear power contributes less than 3% of India’s electricity mix, far below its potential.

Several structural constraints have limited growth:

• Outdated legislation framed in an era of state monopoly

• Liability concerns discouraging private and foreign investment

• High capital costs and long gestation periods

• Public apprehensions over safety

The SHANTI Act is positioned as a corrective mechanism to address these bottlenecks and reposition nuclear energy as a mainstream component of India’s clean energy transition.

What is the SHANTI Act?

The SHANTI Act — Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India — is a proposed comprehensive law intended to:

• Modernise nuclear governance

• Enable faster capacity addition

• Promote innovation and new reactor technologies

• Facilitate public-private partnerships

• Align nuclear energy policy with climate commitments

Unlike earlier laws that treated nuclear power largely as a strategic and security-centric domain, SHANTI reframes it as a developmental and sustainability-oriented sector.

Which laws does SHANTI Act replace or reform?

1. Atomic Energy Act, 1962

The Atomic Energy Act established near-total state control over nuclear power through the Department of Atomic Energy (DAE) and Nuclear Power Corporation of India Limited (NPCIL).

Limitations:

• Excludes private sector participation in reactor ownership

• Restricts competition and innovation

• Centralised decision-making

The SHANTI Act proposes to retain strategic oversight while opening selected civilian nuclear activities to regulated private participation.

2. Civil Liability for Nuclear Damage Act, 2010

The liability law, enacted after the Bhopal gas tragedy legacy, imposed supplier liability, making foreign vendors wary of entering India’s nuclear market.

Impact:

• Stalled large reactor projects

• Limited access to global nuclear technology

• Increased project costs

SHANTI seeks to rebalance liability provisions, harmonising them with global conventions while retaining safeguards for victims.

3. Fragmented regulatory framework

Currently, nuclear regulation is split across multiple bodies, with concerns over independence and transparency.

The Act proposes:

• A strengthened and independent nuclear regulator

• Clearer safety, waste management, and decommissioning norms

• Unified oversight across reactor types, including SMRs

What nuclear capacity is India targeting?

India’s nuclear ambitions have evolved significantly.

Current status

• Installed nuclear capacity: ~7.5 GW

• Share in electricity mix: below 3%

SHANTI Act vision

• Near-term target (2035–2040): 22–30 GW

• Long-term ambition (2050): 50–60 GW or more

These targets align with:

• India’s net-zero by 2070 commitment

• Rising baseload power demand

• Phasing down coal without compromising grid stability

Why nuclear energy matters for India’s energy transition

Renewables like solar and wind are expanding rapidly, but they face:

• Intermittency

• Storage constraints

• Land and transmission challenges

Nuclear energy offers:

• Reliable baseload power

• Zero operational carbon emissions

• Small land footprint

• Long plant lifespans

The SHANTI Act positions nuclear as a complement, not a competitor, to renewables.

Are Small Modular Reactors (SMRs central to SHANTI Act?

What are SMRs?

Small Modular Reactors are:

• Lower-capacity nuclear reactors (typically under 300 MW)

• Factory-fabricated and modular

• Faster to deploy than large reactors

Why SMRs appeal to India

The SHANTI Act places strong emphasis on SMRs due to:

• Lower upfront capital costs

• Enhanced safety features

• Suitability for remote and industrial locations

• Scalability and flexibility

India sees SMRs as ideal for:

• Replacing ageing coal plants

• Powering industrial clusters

• Supporting hydrogen production

• Serving remote regions

Domestic SMR development

India is leveraging its:

• Indigenous PHWR expertise

• Advanced Heavy Water Reactor (AHWR) designs

• R&D institutions under DAE and BARC

SHANTI encourages public-private collaboration in SMR development, testing, and deployment.

Role of private sector under SHANTI Act

One of the most transformative aspects of SHANTI is controlled private participation.

What changes

• Private firms may invest in nuclear generation under strict regulation

• Joint ventures with NPCIL permitted

• EPC, fuel cycle, and maintenance opened further

What remains protected

• Strategic materials

• Weapon-related research

• Sensitive fuel cycle activities

This hybrid approach seeks to balance national security with economic efficiency.

Foreign collaboration and technology access

SHANTI Act is also designed to:

• Revive stalled international nuclear agreements

• Enable technology transfer

• Attract global capital

Countries with advanced SMR technologies are seen as potential partners, provided:

• Liability clarity is ensured

• Regulatory harmonisation is achieved

Safety, waste, and public concerns

Nuclear safety

SHANTI strengthens:

• Emergency preparedness

• Transparency in incident reporting

• Independent safety audits

Waste management

The Act outlines:

• Clear responsibilities for spent fuel

• Long-term geological storage planning

• Decommissioning funds

Public trust

Recognising public apprehension, SHANTI mandates:

• Community engagement

• Environmental impact disclosures

• Health monitoring near nuclear sites

Criticisms and concerns

Despite its promise, the SHANTI Act faces scrutiny:

1. Safety vs speed

Critics warn that rapid expansion could:

• Stretch regulatory capacity

• Compromise oversight if not carefully managed

2. Liability dilution fears

Activists argue that easing supplier liability could:

• Reduce accountability

• Weaken victim compensation mechanisms

3. Cost competitiveness

Skeptics question whether nuclear, even SMRs, can compete with:

• Falling solar and storage costs

Strategic implications

Beyond energy, SHANTI has geopolitical implications:

• Strengthens India’s position in global nuclear supply chains

• Enhances energy sovereignty

• Reduces fossil fuel import dependence

Conclusion

The SHANTI Act represents the most ambitious reform of India’s nuclear energy framework in decades. By replacing outdated legislation, recalibrating liability norms, encouraging private participation, and prioritising Small Modular Reactors, the Act seeks to unlock nuclear power as a cornerstone of India’s clean energy future.

Whether SHANTI succeeds will depend on effective implementation, regulatory independence, public trust, and sustained political commitment. If executed well, it could transform nuclear energy from a marginal contributor into a central pillar of India’s energy security and climate strategy.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.