India’s entry into the exclusive club of nations that allow private nuclear power is a long-overdue correction to its energy policy. The SHANTI Act, 2025, is the most sweeping sectoral reform since independence, dismantling the barriers that have hindered the growth of nuclear energy in India. By pivoting from a government-only model to a mixed-market framework, the Act relies on private capital and execution efficiency to meet India’s rising energy demands and long-term decarbonisation goals.
The SHANTI Act delivers several breakthroughs: First, it allows private entities to build, own, and operate nuclear power plants. This is a welcome departure from the status quo by dismantling a long-standing state monopoly. Second, the bill clearly delineates supplier liability and operator recourse rights, aligning it with global best practices. Confusion and a lack of clarity in the existing liability regime were major sticking points for suppliers of nuclear equipment, especially foreign ones. Third, the bill grants the Atomic Energy Regulatory Board (AERB) statutory independence from the Department of Atomic Energy. This addresses a long-standing conflict of interest arising from both the regulator and the operator being under the same department. Finally, the bill establishes a three-stage grievance redressal mechanism that culminates in the Supreme Court. By creating a clear and time-bound pathway for dispute resolution, the bill reduces regulatory uncertainty and makes returns more predictable for investors.