SHANTI Act 2025: Private Sector Entry in Nuclear Energy to Meet 100 GW Target by 2047

The Hindu - Opinion · 6 Apr 2026 · 2 min read
Prelims · Science and technology Mains · GS3 Economy High relevance

The SHANTI Act 2025 reforms India's nuclear energy sector by allowing private participation, repealing the 1962 Atomic Energy Act and 2010 CLNDA, to achieve 100 GW nuclear capacity by 2047 aligned with Viksit Bharat and net-zero goals.

Key points

SHANTI Act 2025 replaces the Atomic Energy Act 1962 and Civil Liability for Nuclear Damage Act 2010, enabling private companies to build, own, and operate nuclear power plants in India for the first time.

The Act grants statutory status to the Atomic Energy Regulatory Board (AERB), strengthening nuclear safety oversight as private participation expands, addressing a long-standing governance gap in India's nuclear sector.

India plans to increase nuclear capacity from 8,180 MW to 100 GW by 2047, requiring $200 billion investment, making private sector involvement critical for financing this 12-fold expansion.

[GS3-Environment] Nuclear energy's role as low-carbon baseload power is vital for India's net-zero 2070 target, complementing intermittent renewables which currently provide only 22% of generation despite 50% capacity share.

The 700 MW Pressurised Heavy Water Reactor (PHWR) design, indigenously developed at $2 million/MW, offers cost-competitive nuclear technology for fleet-mode deployment to achieve economies of scale.

[GS2-Governance] The reform connects to India's energy security strategy by diversifying electricity generation mix beyond coal (currently 75% of generation) and reducing import dependence on fossil fuels.

Pending projects at Jaitapur (9.9 GW), Mithi Virdi (6 GW), and Kovvada (6 GW) with foreign reactor designs could accelerate if the new liability framework addresses investor concerns.

India's per capita electricity generation (1,418 kWh) lags significantly behind China (7,097 kWh) and OECD averages (8,000 kWh), necessitating massive capacity addition for Viksit Bharat goals.

Way Forward: Establish a transparent regulatory framework for private participation, fast-track clearances for indigenous PHWR projects, create risk-sharing mechanisms for foreign investors, and integrate nuclear expansion with grid modernization for renewable-nuclear synergy.

Key terms

Pressurised Heavy Water Reactor (PHWR)

India's indigenous nuclear reactor design using natural uranium and heavy water moderator. With 700 MW units costing $2 million/MW, it forms the backbone of India's three-stage nuclear program. UPSC relevance: strategic self-reliance in nuclear technology and export potential.

Civil Liability for Nuclear Damage Act (CLNDA)

2010 law that imposed liability on nuclear plant operators for accidents, deterring foreign reactor suppliers. Its repeal under SHANTI Act removes a major barrier to international nuclear cooperation. UPSC relevance: balancing liability regimes with energy security needs.

Viksit Bharat 2047

India's development vision aiming for developed nation status by 2047, requiring 2,000 GW electricity capacity. UPSC relevance: connects energy policy with broader economic transformation goals, testing governance capacity in infrastructure scaling.

Atomic Energy Regulatory Board (AERB)

India's nuclear safety regulator established in 1983, now granted statutory status under SHANTI Act 2025. It oversees radiation safety, nuclear facility licensing, and emergency preparedness. UPSC relevance lies in its enhanced role in ensuring safety as private players enter nuclear energy sector.