SHANTI to power India’s nuclear energy mission

Rarely has a piece of legislation in India received such immediate policy backing and long-term strategic alignment as the SHANTI Act, 2025. The Act   was passed by the Indian Parliament on December 18 and received presidential assent on December 20. The Union Budget 2026-27, presented on February 1, reflects this long-term policy direction. India’s Nuclear Energy Mission, announced in 2025, reflects the country’s solemn commitment to clean and sustainable energy for economic growth, aiming to attain the goal of net-zero carbon emissions by 2070. With the SHANTI Act and long-term policy vision, India is positioned to play a larger role in the global nuclear power sector. India’s integrated approach aligns with the emerging convergence between AI and nuclear energy. The SHANTI Act 2025 modernises India’s civil nuclear legal framework. The Act repeals and replaces the Atomic Energy Act 1962 and the Civil Liability for Nuclear Damage Act 2010. It enables limited private participation in the nuclear sector under regulatory oversight. It strengthens the regulatory environment by granting statutory recognition to the Atomic Energy Regulatory Board (AERB). The Act supports India’s clean energy transition and the long - term objective of achieving 100 GW nuclear energy capacity by 2047, which stands at 8.8 GW as of now. The Act aims to build a more advanced and resilient nuclear ecosystem through an integrated framework. The legislation paves the way for modernising the nuclear energy sector, significantly by opening the sector to regulated private and foreign participation. The Act contains a well-charted-out framework for enhanced security, safeguards and emergency preparedness.

The Act allows regulated private participation in plant operations, power generation and equipment manufacturing, including selected fuel-cycle activities such as nuclear fuel fabrication and the enrichment of Uranium-235 up to prescribed limits. All radiation-related activities require prior safety authorisation from the regulator. The Act reserves certain sensitive nuclear fuel-cycle activities for the Central Government or its wholly - owned institutions. It provides a regulatory framework for the use of nuclear and radiation technologies in health care, agriculture, industry, research and other peaceful applications. The Act allows exemption from license for limited activities such as research, development and innovation - related work. The legislation enables India to scale from 8GW of nuclear capacity to 100 GW by 2047. Analysts estimate investment requirements of over $200 billion. As global energy demand rises, the SHANTI Act aims to ensure a solid, carbon - free power source. The legislation integrates licensing, regulation, liability and dispute resolution into a well-structured statute. The Act permits foreign participation in stipulated segments of the nuclear energy sector, but only in the capacity of joint venture partners or goods and service providers of establishments in India’s private sector. At the same time the ongoing bilateral cooperation and strategic and technological collaboration will be strengthened extensively in the light of liberalised norms in the SHANTI Act.

The country’s 2010 Liability Law had deterred global suppliers. The SHANTI Act removes the unlimited liability risk, aligning India with global conventions and making the sector more accessible to experienced global nuclear technology providers, including partners such as Rosatom.

One of the highlights of Budget 2026-27 is the extension of customs duty exemptions for nuclear project goods until 2035. The budgetary initiatives will help the industry stakeholders to have a long-term view and to plan their business streams accordingly. Nuclear power, which currently contributes about three per cent of India’s electricity, is set to expand substantially as the country scales capacity toward its 100 GW target by 2047. Kudankulam Nuclear Power Plant (KKNPP) near Kanyakumari, built and operated by NPCIL with Russian technical cooperation (Rosatom), plays a significant role in the country’s energy landscape. With Units 1 and 2 operational and Units 3 to 6 under construction, KKNPP is India’s largest nuclear facility and a key project within India’s nuclear expansion programme. The priority accorded to Small Modular Reactors (SMRs), backed by the Rs. 20,000 crore Nuclear Energy Mission announced in Budget 2025-26, is expected to further strengthen Indo-Russian collaboration in the nuclear energy sector, where Russia has established technological capabilities. President Vladimir Putin’s recent visit to India has reaffirmed the importance of bilateral civil nuclear cooperation. Ongoing partnership and the potential deployment of more advanced Russian-designed reactors reinforce a long-term strategic partnership in the nuclear energy domain. The SHANTI Act of 2025 is a landmark legislation which will attract significant investments in India’s expanding nuclear energy sector. The Act represents a major structural shift in India’s nuclear policy.

K. P. Mohanan is Permanent Fellow, World Press Institute; views are personal