What is the SHANTI Bill, 2025?

The SHANTI Bill, 2025 proposes a modern and consolidated legal framework for the regulation, development, and use of nuclear energy and radiation-related activities in India. It seeks to align nuclear regulation with India’s clean energy goals, enable limited and regulated private participation, and strengthen safety oversight, while continuing to treat nuclear energy as a sensitive and strategic sector under strong state supervision.

Which existing laws does the SHANTI Bill replace?

The SHANTI Bill repeals and replaces two existing statutes, namely the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. While the Atomic Energy Act primarily focused on state control and strategic use of atomic energy, the Civil Liability Act dealt only with compensation in the event of nuclear damage. By replacing both, the SHANTI Bill consolidates licensing, regulation, safety, liability, and compensation within a single, comprehensive statute.

What is the role of the Atomic Energy Regulatory Board under the SHANTI Bill?

Under the SHANTI Bill, the Atomic Energy Regulatory Board is granted statutory status and a clearly demarcated role as India’s independent nuclear safety regulator. While the Central Government retains authority over licensing and policy decisions, the AERB is responsible for safety authorisations, regulatory compliance, inspections, emergency preparedness, and enforcement of safety and security standards across nuclear and radiation-related activities.

Does the SHANTI Bill privatise nuclear energy in India?

The SHANTI Bill does not privatise nuclear energy but introduces a regulated participation model that allows Indian companies and joint ventures to engage in certain nuclear activities under strict licensing and safety controls. Highly sensitive areas such as fuel cycle operations, enrichment, reprocessing, and strategic materials remain firmly under government control. The Bill shifts away from an absolute state monopoly while preserving strong governmental oversight and national security safeguards.

What activities are now covered under the SHANTI Bill?

The SHANTI Bill significantly expands the scope of nuclear regulation beyond power generation. It covers civilian and non-power applications such as medical and healthcare uses of radiation, agricultural and industrial applications, research and innovation activities, and other authorised uses involving ionising radiation. This broader scope reflects the evolving role of nuclear technology across multiple sectors of the economy.

SHANTI Bill, 2025: A Primer on Nuclear Regulation in India

By – Devank Maheshwari and Aditi Jain

Purpose and Legislative Context

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 (“SHANTI Bill”) aims to put in place a modern and comprehensive legal framework for the development, regulation and use of nuclear energy and radiation-related applications in India. It repeals and replaces both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, bringing issues of licensing, safety, regulation, liability and compensation under a single, consolidated statute.

The Atomic Energy Act 1962 (“Atomic Energy Act”) was enacted in a period when nuclear activities were closely linked to strategic considerations and were kept under exclusive government control. The Civil Liability for Nuclear Damage Act, 2010 (“Civil Liability Act”), on the other hand, dealt with compensation in the event of nuclear damage. In contrast, the SHANTI Bill reflects current policy priorities, including the clean energy transition, private-sector participation, new technologies, and the need for a revamped regulatory system.

In all aspects, the Bill is a decisive break from a state-centric framework towards a regulated, development-oriented regime with a revamped institutional structure. Most importantly, the Bill seeks to enable measured private participation without diluting regulatory control. Essentially, it is a shift from strategic-exception model to a regulated infrastructure model, while recognizing nuclear energy as a sector with heightened national-security sensitivities.

Key Takeaways

Scope of the Bill

Under the SHANTI Bill, the scope of the law is expanded from “atomic energy” to “nuclear energy and ionizing radiation”. This explicitly brings within its ambit non-power applications such as healthcare, agriculture, industry, research and emerging areas like AI-enabled technologies. The Bill also updates and expands definitions relating to nuclear damage, safety, security, safeguards, decommissioning and environmental restoration. By comparison, the Atomic Energy Act had a narrow and control-oriented focus, primarily dealing with atomic energy and prescribed substances for strategic purposes. It defined nuclear damage only to the extent necessary for fixing liability.

This marks a clear departure from the Atomic Energy Act’s narrow approach with a clear recognition that the requirement of a nuclear energy law today is as much about civilian governance and commercial development, as strategic capability.

Grant of License and Safety Authorization

A major change introduced by the SHANTI Bill is that it allows Indian companies, joint ventures and other permitted persons to apply for license to build, own and operate nuclear facilities, subject to national security restrictions. The Bill clearly separates the licensing function, which rests with the Central Government, from safety authorization, which is vested in the Atomic Energy Regulatory Board (“AERB”). It also permits research, design and innovation activities without a license, except in areas reserved for the government or having security implications.

In contrast, the Atomic Energy Act effectively restricted nuclear activities to government entities, leaving little or no room for private participation. The SHANTI Bill therefore represents a move away from a state monopoly towards a regulated participation model, while still retaining government control over sensitive areas such as fuel cycle activities, enrichment, reprocessing and heavy water.

It is important to note that the nuclear sector in India continues to be highly regulated. The SHANTI Bill introduces a regulated participation model where there is a clear separation policy control, licensing, and safety oversight. This is a critical governance improvement over the Atomic Energy Act, where these functions were largely fused.

It is important to note that certain research, design and innovation activities are exempted from licensing requirements, subject to exclusions and other conditions.

Duties and Liabilities

The Bill clearly places the primary responsibility for safety, security and safeguards on licensees and operators. It retains the principle of strict and exclusive operator liability for nuclear damage. The maximum liability for a nuclear incident is capped at 300 million Special Drawing Rights (SDRs”), with installation-specific caps provided in the Second Schedule. Beyond the operator’s liability, the Central Government assumes residual liability and may establish a Nuclear Liability Fund. The operator’s right of recourse is permitted in limited situations, such as where provided by contract or in cases of intentional acts.

The Civil Liability Act introduced operator liability but attracted criticism due to uncertainty regarding supplier liability and insurance mechanisms. Importantly, the Atomic Energy Act had no detailed liability framework.

In the SHANTI Bill, as the liability is capped, it would facilitate availability of insurance and faster financial closure of the projects.

Inspection, Investigation, Search and Seizure

The Bill provides detailed and explicit powers for inspection, investigation, search and seizure to both the Central Government and the AERB. It allows for preventive and corrective measures, including sealing of facilities and suspension or cancellation of licenses where necessary.

Powers of the Central Government

The SHANTI Bill mandates the formulation of key policies, including a National Nuclear Energy Policy, safety and security policy, and a policy for spent fuel and radioactive waste management. At the same time, it retains strong government control over acquisition rights, sensitive materials, tariff setting, inventions and emergency powers.

Constitution of Atomic Energy Regulatory Board

The SHANTI Bill 2025 gives statutory status to the Atomic Energy Regulatory Board, clearly laying down its composition, tenure, qualifications and powers. AERB’s mandate is expanded to include public outreach, transparency, emergency preparedness and engagement with international bodies. In contrast, under the Atomic Energy Act, the AERB functioned mainly through executive orders.

A significant reform under the SHANTI Bill is the structural separation between policymaking, licensing, and safety oversight. Unlike the Atomic Energy Act where the Central Government effectively combined all three roles, the SHANTI Bill institutionally differentiates policy control and licensing (Central Government) with the safety oversight (AERB).

Appeals and Compensation

The Bill establishes a Redressal Advisory Council, an Appellate Tribunal, and a dedicated Nuclear Damage Claims Commission, with detailed procedures for filing, adjudicating and enforcing claims.

Transparency and RTI Exclusion

One of the most significant aspects of the Bill is its limited exclusion from the RTI regime for nuclear-related information. However, it must be noted that such exclusions are not unprecedented in strategic sectors and even the courts have historically balanced transparency against national security and strategic sectors.

However, from a legitimacy standpoint, public trust in nuclear expansion will depend heavily on proactive disclosure, stakeholder engagement and credible safety communication-areas where subordinate legislation and regulatory practice will be crucial.

Conclusion

The SHANTI Bill, 2025 is a re-conceptualisation of nuclear governance in India. More importantly, it makes a departure from state monopoly to regulated private participation and from executive control to statutory regulation. At the same time, it is doubtless that it preserves control of the Central Government in every sphere. The compensation mechanism under the SHANTI Bill prioritises certainty in terms of liability caps, albeit with strict liability of operators and state responsibility beyond the liability caps.

FAQs

What is the SHANTI Bill, 2025?

The SHANTI Bill, 2025 proposes a modern and consolidated legal framework for the regulation, development, and use of nuclear energy and radiation-related activities in India. It seeks to align nuclear regulation with India’s clean energy goals, enable limited and regulated private participation, and strengthen safety oversight, while continuing to treat nuclear energy as a sensitive and strategic sector under strong state supervision.
Which existing laws does the SHANTI Bill replace?

The SHANTI Bill repeals and replaces two existing statutes, namely the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. While the Atomic Energy Act primarily focused on state control and strategic use of atomic energy, the Civil Liability Act dealt only with compensation in the event of nuclear damage. By replacing both, the SHANTI Bill consolidates licensing, regulation, safety, liability, and compensation within a single, comprehensive statute.
What is the role of the Atomic Energy Regulatory Board under the SHANTI Bill?

Under the SHANTI Bill, the Atomic Energy Regulatory Board is granted statutory status and a clearly demarcated role as India’s independent nuclear safety regulator. While the Central Government retains authority over licensing and policy decisions, the AERB is responsible for safety authorisations, regulatory compliance, inspections, emergency preparedness, and enforcement of safety and security standards across nuclear and radiation-related activities.
Does the SHANTI Bill privatise nuclear energy in India?

The SHANTI Bill does not privatise nuclear energy but introduces a regulated participation model that allows Indian companies and joint ventures to engage in certain nuclear activities under strict licensing and safety controls. Highly sensitive areas such as fuel cycle operations, enrichment, reprocessing, and strategic materials remain firmly under government control. The Bill shifts away from an absolute state monopoly while preserving strong governmental oversight and national security safeguards.
What activities are now covered under the SHANTI Bill?

The SHANTI Bill significantly expands the scope of nuclear regulation beyond power generation. It covers civilian and non-power applications such as medical and healthcare uses of radiation, agricultural and industrial applications, research and innovation activities, and other authorised uses involving ionising radiation. This broader scope reflects the evolving role of nuclear technology across multiple sectors of the economy.