SHANTI Bill 2025 Supports Nuclear Expansion, Further Policy Support Needed: Infomerics Ratings

The proposed SHANTI Bill 2025 marks a significant structural step toward strengthening India’s nuclear power ecosystem, though additional policy and market enablers will be required to unlock large-scale capacity growth, according to Infomerics Ratings.

The proposed legislation seeks to address long-standing constraints that have slowed nuclear capacity expansion in India, particularly around liability provisions and limited sector participation. These factors have historically restricted project execution and discouraged foreign supplier involvement.

With India’s electricity demand steadily increasing and the country advancing its long-term decarbonisation commitments, nuclear energy is expected to play a more prominent role in the national power mix. While renewable energy sources such as solar and wind have grown rapidly in recent years, their intermittent generation patterns limit their ability to provide reliable baseload supply. Nuclear power, with high plant load factors and stable output, can complement renewables and help strengthen grid stability.

Rohit Inamdar, Chief Ratings Officer at Infomerics Ratings, said that the SHANTI Bill introduces category-wise operator liability caps and restricts recourse to suppliers to defined contractual or intentional fault situations.

“The SHANTI Bill provides category-wise operator liability caps and restricts recourse to suppliers to defined contractual and intentional fault situations, thereby reducing supplier risk, improving investor confidence, and facilitating greater private sector participation in future nuclear projects. However, growth in nuclear capacity will also depend on tariff competitiveness and the development of a domestic vendor ecosystem,” he said, adding that the bill represents an important starting point but is not sufficient on its own.

India’s nuclear capacity has expanded gradually over the past decade, rising from around 5.8 GW in 2015 to nearly 8.8 GW in 2025. The slow pace has been attributed partly to regulatory hurdles and concerns surrounding the Civil Liability for Nuclear Damage Act, 2010, which had raised liability risks for suppliers.

The SHANTI Bill proposes a more comprehensive framework governing nuclear development, safety, regulation and liability, while enabling broader participation from government entities, companies and joint ventures through a structured licensing regime.

Despite the policy push, capacity expansion is expected to remain gradual. Infomerics estimates that India’s nuclear power capacity could reach around 22 GW by FY2032 based on projects currently under implementation and planning, still significantly below the country’s long-term target of 100 GW by 2047.

The sector continues to face structural challenges including high upfront capital costs compared with coal-based power generation, concerns around tariff competitiveness, and dependence on imported uranium. Strengthening long-term fuel security and building domestic fuel-cycle infrastructure will therefore remain crucial.

Jyotsna Gadgil, Senior Director- Ratings at Infomerics Raitngs, noted that policy reforms alone may not translate into rapid capacity additions.

“While the SHANTI Bill creates a stronger regulatory and liability framework for nuclear power development, translating policy intent into large-scale capacity addition will require parallel progress in fuel security, technology readiness and execution capability,” she said.

“Given the private sector’s limited track record in this segment, the pace of project implementation will be a key factor to watch," she added further.

Overall, Infomerics believes the SHANTI Bill represents a necessary reform to improve the investment climate in India’s nuclear power sector. However, progress in financing frameworks, fuel security arrangements and technology ecosystem development will be essential to unlock large-scale nuclear capacity over the long term