India's Parliament Enacts SHANTI Bill to Revamp Nuclear Regulations

On 18 December 2025, the Indian Parliament approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This legislation represents a significant update to India's nuclear energy regulatory framework, replacing existing laws from 1962 and 2010.

The SHANTI Bill aims to enhance nuclear power generation and attract private investment by reforming legal and regulatory structures. It replaces the Atomic Energy Act, 1962, which managed the development and use of atomic energy, and the Civil Liability for Nuclear Damage Act, 2010, which outlined the compensation framework for nuclear incidents.

One of the notable changes introduced by the new legislation is the opening up of nuclear activities to non-governmental entities. Previously, under the Atomic Energy Act, only central government bodies could obtain licenses for nuclear-related activities. The new law allows private Indian companies and joint ventures to engage in various nuclear operations, including the construction and operation of nuclear plants, subject to stringent safety regulations enforced by the Atomic Energy Regulatory Board (AERB).

The SHANTI Bill maintains the core principles of nuclear liability established by the 2010 Act, including the no-fault liability system. Operators of nuclear facilities will still be liable for compensating victims of nuclear incidents, regardless of negligence. However, the legislation introduces a revised liability structure with limits based on the power capacity of installations, ranging from ₹100 crore to ₹3,000 crore (approximately £12 million to £360 million).

A significant amendment is the alteration of the operator's right of recourse, which previously allowed operators to claim back costs from suppliers in cases involving defective equipment. The new law narrows this right, likely alleviating concerns from suppliers regarding extensive liability exposure.

Additionally, the legislation expands the scope of compensation claims to cover nuclear damage that occurs in foreign territories as a result of incidents originating in India, under certain conditions.

The formation of the AERB is another key aspect of the new law, granting it statutory recognition for the first time. The AERB will oversee the safe use of nuclear energy and radiation and will consist of a chairperson, one full-time member, and up to seven part-time members, all appointed by the central government.

Furthermore, the SHANTI Bill establishes an Atomic Energy Redressal Advisory Council to handle appeals regarding government or AERB decisions, chaired by the Chairperson of the Atomic Energy Commission. This council includes notable figures such as the Director of the Bhabha Atomic Research Centre.

The passage of this legislation signals India's commitment to modernising its nuclear energy sector while prioritising safety and regulatory oversight. It is expected to facilitate a more robust investment climate in nuclear energy, aligning with the country's long-term energy transition objectives. As noted by a government spokesperson, the bill represents a “transformational step towards establishing a sustainable nuclear framework in India.”