NextFin News - On December 12, 2025, the Union Cabinet of India approved the SHANTI Bill, a landmark legislation intended to open the civil nuclear power sector to private entities. This approval was announced from New Delhi with the government aiming to introduce the bill in Parliament imminently. The bill – Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India – seeks to amend existing legal frameworks including the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 to facilitate private sector involvement while ensuring stringent safety, security, and regulatory compliance. This move aligns with India’s ambitious nuclear power expansion target of 100 gigawatts (GW) by 2047, wherein nearly half of the capacity is expected to be realized through private investment.
The existing nuclear sector has traditionally been dominated by the Department of Atomic Energy (DAE) and its units, alongside the public sector undertaking Nuclear Power Corporation of India Ltd (NPCIL). Prior legal and regulatory restrictions barred private companies from investing or operating civil nuclear power plants. The SHANTI Bill aims to dismantle these barriers, enabling private firms to own, build, and operate nuclear reactors under government oversight. This reform was foreshadowed in the Union Budget speech by Finance Minister Nirmala Sitharaman nearly a year ago.
A notable ongoing government partnership between NPCIL and the National Thermal Power Corporation (NTPC) is illustrative of the evolving landscape. Their joint venture plans a 2800 MW nuclear power plant in Rajasthan’s Mahi Banswara region, consisting of four 700 MW pressurised heavy water reactors, expected to be operational within approximately six and a half years. The private sector is envisaged to participate on a much larger scale going forward.
With the SHANTI Bill, India signals a strategic intent to unlock capital, technology, and operational efficiencies from private and international investors. The government plans to back this transition with financial mechanisms such as viability gap funding, sovereign guarantees, and other incentives to de-risk investments in nuclear power infrastructure. This is crucial considering the high capital intensity, long gestation periods, and stringent safety standards associated with nuclear power projects.
This policy shift also coincides with India’s broader push to innovate in nuclear technology. Leading research institutions like the Bhabha Atomic Research Centre and NPCIL are developing small modular reactors (SMRs), a highly anticipated next-generation technology that offers scalability, enhanced safety, and lower upfront costs compared to traditional large reactors. Private sector involvement could accelerate SMR commercialization and deployment.
Opening the nuclear sector bears significant implications. Domestically, it is expected to stimulate industrial growth, create jobs, and diversify India’s energy mix towards cleaner, low-carbon sources, helping to meet climate commitments. Economically, increased competition and private capital inflows could improve project efficiency and reduce costs. Politically and geopolitically, enhancing nuclear capacity strengthens India’s energy security and technological stature.
Notwithstanding its promise, the path forward requires careful balancing of nuclear safety, non-proliferation commitments, and public trust. Regulatory frameworks will need to evolve robustly to monitor private operators effectively. The SHANTI Bill’s implementation timeline and detailed regulations remain focal points to watch.
Looking ahead, if enacted and implemented effectively, the SHANTI Bill can be a transformative cornerstone in reshaping India’s nuclear power sector. It aligns with global energy trends emphasizing public-private partnerships, technological innovation, and sustainable growth. This legislative milestone also serves as a testament to India’s ambition to become a global nuclear energy leader by 2047, leveraging private sector dynamism alongside state stewardship.
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