Transforming India’s nuclear power landscape

The legislative overhaul through the SHANTI Act, 2025, signifies a move from a state-monopolized nuclear sector to a regulated, liberalized one. Previously, under the Atomic Energy Act, 1962, all nuclear activities were the exclusive domain of the Department of Atomic Energy (DAE). The SHANTI Act enables private companies to build, own, and operate nuclear power plants, a significant departure from the past. Crucially, it grants statutory status to the Atomic Energy Regulatory Board (AERB), which was previously a body constituted by presidential order under the 1962 Act. This provides the AERB with greater autonomy and legal authority, strengthening the regulatory framework for safety and oversight, a long-pending reform demand. The new Act also restructures the nuclear liability regime, creating a tiered liability cap for operators, which is expected to attract private and foreign investment that was deterred by the previous liability laws.

The reform is primarily driven by an economic imperative to meet India's vast energy needs for its 'Viksit Bharat' goal. The target of adding over 90 GW of nuclear capacity by 2047 requires an estimated investment of over $200 billion, which is unfeasible through public funding alone. By repealing the Civil Liability for Nuclear Damage Act, 2010, which contained contentious clauses on supplier liability (Section 17), the SHANTI Act, 2025 aims to create a more favorable investment climate. It introduces a tiered liability structure for operators and aligns India's recourse provisions with international conventions, encouraging foreign technology providers and private capital. The strategy includes a focus on:

• Large reactors with foreign collaboration (e.g., French and American designs).
• Small Modular Reactors (SMRs), with a ₹20,000 crore research fund to develop indigenous models.
• Leveraging the proven 220 MW PHWR model for modular deployment by private industries for captive power.

This policy pivot is a core component of India's energy transition strategy towards its 2070 net-zero target. While renewable energy capacity is expanding, its intermittent nature necessitates a reliable, low-carbon baseload power source. Nuclear energy, which generates power without GHG emissions, is positioned to replace coal, which currently provides 75% of India's electricity generation. The article highlights that achieving developmental goals will significantly increase electricity demand, and relying solely on land-intensive renewables is challenging. Technologically, the plan is multi-pronged. It involves indigenizing large foreign reactor designs, accelerating R&D in indigenous Small Modular Reactors (SMRs), including advanced designs like molten-salt reactors, and exploring new fuel cycles such as Thorium cladding with High Assay Low Enriched Uranium (HALEU) to utilize India's vast thorium reserves sooner.