Energetica India Magazine

India’s energy policy has always been a balancing act between growth, sustainability, and security. In 2025, the government introduced the SHANTI Act, a landmark legislation aimed at reshaping the country’s nuclear energy framework. This article explores the SHANTI Act in depth, analysing its provisions, objectives, and the wide-ranging impact it is expected to have on the Indian economy. India’s demand for energy is soaring, driven by rapid economic growth, expanding cities, digital transformation, and industri- al progress. As the fastest-growing major economy, the country faces a tough balancing act: powering its future while staying true to climate commitments and environmental goals. This is where the SHANTI Act (Sustainable Harnessing and Advancement of Nuclear Technology in India), 2025, steps in. It marks a turning point in India’s energy policy, replacing outdated laws with a modern framework that opens the nucle- ar sector to greater private and foreign participation. By con- solidating earlier legislation into one unified system, the Act aims to attract investment, speed up capacity expansion, and strengthen long-term economic growth. Most importantly, SHANTI signals a shift from a govern- ment-dominated nuclear sector to a collaborative model where public and private players work together. This transformation could reshape India’s economy – boosting competitiveness, se- curing energy supplies, and supporting a cleaner, more sustain- able future. Background India’s nuclear energy programme has always been shaped by national security, scientific ambition, and the need for re - liable power. From independence, the government kept tight control, building nuclear technology and infrastructure mainly through state-run bodies. The Atomic Energy Act, 1962, replaced the earlier 1948 law and laid down the foundation for India’s nuclear programme. It empowered the government to regulate atomic energy for peaceful purposes, ensuring strict control over research, devel- opment, and use of nuclear materials. Further amendments in 1986, 1987, and 2015 to the Atomic Energy Act of 1962 gradu- ally opened the sector beyond the Central Government, allow- ing government companies and joint ventures to participate in nuclear power generation. The amendments reflected India’s intent to expand capacity while keeping strategic oversight in- tact. The Civil Liability for Nuclear Damage Act, 2010, introduced a no-fault liability regime, ensuring compensation in case of nu- clear incidents. This law provided clarity on responsibility and built public trust by prioritising safety and accountability in nuclear operations. However, certain provisions, particularly the “right of recourse” clause, created uncertainty for foreign suppliers and investors, thereby restricting international par- ticipation in India’s nuclear sector. Over time, several structural challenges became evident: • Limited capital investment for large nuclear projects • Slow capacity expansion • Regulatory fragmentation • Restricted private sector participation • Growing energy demand and climate commitments As India’s economy expanded and electricity demand surged, the need for reform in nuclear energy governance became in- creasingly evident. The SHANTI Act, 2025 The SHANTI Act, 2025 (Sustainable Harnessing and Ad- vancement of Nuclear Energy for Transforming India) is a comprehensive legislative reform designed to modernise India’s nuclear energy framework. The Act seeks to consolidate exist- ing laws and create a unified legal structure for nuclear energy governance. The primary objective of the Act is to accelerate nuclear en- ergy development while ensuring safety, regulatory oversight, and environmental protection. The SHANTI Act and India’s Advancement in Nuclear Energy Gautam Bose Manager (Research) State Bank Academy NUCLEAR ENERGY 42 energetica INDIA- Jul-Aug_2026