Cabinet Clears SHANTI Bill to Open Nuclear Power Sector to Private Players, Allow 49 Percent FDI

The Union Cabinet has approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, marking a major policy shift to open India’s tightly regulated nuclear power sector to private participation.

The move is seen as critical to achieving the country’s ambitious target of 100 GW of nuclear power capacity by 2047. The proposed legislation seeks to amend India’s civil nuclear liability framework by shielding plant operators and capping equipment suppliers’ liability, a long-standing demand of global and domestic investors. It also proposes redesigning operator insurance coverage to INR 1,500 crore per incident under the Indian Nuclear Insurance Pool.

The Bill allows up to 49 precent foreign direct investment (FDI) in nuclear power projects and aims to establish a unified legal framework for atomic energy. It also proposes the creation of a specialised nuclear tribunal to handle disputes.

While enabling private-sector entry, the government will retain tight oversight. The Department of Atomic Energy (DAE) will continue to control core functions such as nuclear material production, heavy water manufacturing, and radioactive waste management. Private participation will be governed by clearly defined rules under government supervision.

Finance Minister Nirmala Sitharaman had announced the government’s intent to open the sector in her February Budget speech, alongside unveiling a IR 20,000 crore Nuclear Energy Mission focused on research and development of small modular reactors (SMRs). The mission includes plans to operationalise five indigenously developed SMRs by 2033.

Prime Minister Narendra Modi had also indicated last month that preparations were underway to allow private companies into the nuclear sector, which is currently restricted under the Atomic Energy Act, barring private entities and state governments from operating nuclear power plants.

At present, the Nuclear Power Corporation of India Ltd. (NPCIL), a PSU under the DAE, is the sole operator, running all 24 commercial nuclear reactors in the country.

The SHANTI Bill addresses long-standing bottlenecks across the nuclear energy value chain, citing rising domestic power demand, the rapid expansion of data centres, and India’s 2070 net-zero commitment as key drivers behind the renewed push for nuclear energy. As per officials, scaling nuclear capacity nearly ten-fold over the next two decades would be impossible without private-sector involvement.