Energetica India Magazine

Key Features of the SHANTI Act • The Act repeals both the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, creating a single integrated legal framework. • For the first time, private companies are allowed to partici - pate in nuclear power projects under government supervision. • The legislation opens avenues for international collaboration and investment in nuclear energy infrastructure. • The Act proposes strengthening regulatory institutions and separating safety oversight from policy promotion. • A revised civil liability regime seeks to reduce legal uncertain- ties that previously discouraged foreign suppliers. • The government aims to increase nuclear power capacity to around 100 GW by 2047, aligning with India’s long-term ener- gy strategy. • The Act encourages the development of small modular re- actors (SMRs), a type of nuclear fission reactor with a rated electrical power of 300 MW or less and advanced nuclear tech- nologies. These reforms aim to transform India’s nuclear energy sector from a limited government-controlled industry into a dynamic and investment-friendly ecosystem. The Role of Nuclear Energy in India’s Energy Mix Right now, nuclear power plays a modest role in India’s elec- tricity mix. As per the latest data, the country’s operational nuclear capacity stands at approximately 8.78 GW - that’s less than 2 percent of India’s total installed electricity capacity. While this clean, reliable source provides a stable base-load supply, it remains a small slice compared to coal, renewables, and hydro. But India has bold plans to change that. The government has outlined an ambitious roadmap to scale up nuclear energy sig- nificantly as part of its push toward energy security, net-ze - ro goals, and a cleaner future. Hitting these milestones would transform nuclear power into a major pillar of India’s energy system while slashing carbon emissions and supporting indus- trial growth. This is exactly where the recently enacted SHANTI Act comes in. Passed in late 2025, it modernises the legal framework, opens limited doors for private sector participation, eases some long-standing barriers around liability and innovation, and aims to accelerate safe, sustainable growth in the sector. Economic Impact of the SHANTI Act The SHANTI Act is emerging as a pivotal economic reform in India’s energy sector, with far-reaching impacts on invest- ment, jobs, and sustainability. The government has already earmarked INR 20,000 crore in the 2025-26 Union Budget to accelerate nuclear expansion, including the deployment of small modular reactors by 2033. In parallel, India’s Prototype Fast Breeder Reactor (PFBR) at Kalpakkam has attained crit- icality, marking a self-sustaining nuclear chain reaction and a major milestone in the second stage of the country’s three- stage nuclear programme. This is part of a broader ambition to scale nuclear capacity from the current 8.7 GW in 2026 to 100 GW by 2047, a twelve-fold increase that would require billions of dollars in capital investment. By opening the sector to pri- vate and foreign participation, the Act is expected to mobilise unprecedented financial inflows, strengthening infrastructure and allied industries. energetica INDIA- Jul-Aug_2026 43 NUCLEAR ENERGY