Lok Sabha’s pass SHANTI bill allowing privatisation

Thursday 18th December 2025 12:25 EST
 

The Lok Sabha’s passed new nuclear bill, Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 causes further disputes as it was approved despite demands from several opposition parliament members for referring the legislation to a parliamentary panel. Following introductory remarks by Science Minister Jitendra Singh, Congress MP, Manish Tewari asked if the legislation allowing private sector involvement was linked to the Adani Group’s reported interest in the nuclear industry from November. This query sparked an uproar in the House, prompting Singh to retort that the Bill had no connection to any specific company. He argued that such aspersions brought disrepute to the chamber while defending the policy's objective to modernise the sector through private investment. By reducing liability, the government aims to secure foreign investment, reversing a stance the BJP defended in 2008, opposing Manmohan Singh. Although the Opposition demanded a committee review, the Bill now progresses to the Rajya Sabha.

Privatising the nuclear power sector – that currently makes up 1.5% of India’s installed power capacity and 3% of the electricity produced – has been on the government’s agenda in recent years to boost clean energy production, improve grid stability and move towards its 2070 net-zero (zero net- carbon emissions) targets. This includes scaling up installed nuclear power to 100 GW up from the current 8.8 GW by 2047 and a ₹20,000-crore mission announced in the Budget this year to develop ‘small modular reactors’ and a slew of customised 220 MW Pressurised Heavy Water reactors (Bharat Small Modular Reactors).

The bill allows entry of private players into the industry, something that was reserved for government enterprises till now. Singh said that it provides for “a pragmatic civil liability regime for nuclear damage and to confer statutory status to Atomic Energy Regulatory Board.”

The proposed legislation further aims to facilitate significant growth in nuclear energy and its applications across multiple sectors. This aligns with country’s target to establish 100GW of nuclear power capacity by 2047. The law introduces fresh regulatory provisions encompassing updated safety protocols, a specialised nuclear tribunal for resolving disputes, and modifications to the nuclear liability framework to limit risks and encourage investments.

The proposed legislation permits private enterprises and their collaborative ventures to seek authorisation for establishing and running nuclear facilities, as well as transporting nuclear fuel. However, crucial operations including uranium enrichment, spent fuel handling and heavy water manufacturing shall continue to be exclusively managed by the Central government. The Centre will maintain oversight of radioactive materials and radiation-producing apparatus to ensure proper safety standards.


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