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India's 'Shanti Bill 2025' Poised to Reshape Nuclear Energy

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  Published in Stocks and Investing on Monday, February 2nd 2026 at 20:33 GMT by moneycontrol.com
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New Delhi, February 3rd, 2026 - The Indian government is poised to introduce the 'Shanti Bill 2025' to Parliament, a landmark piece of legislation set to fundamentally reshape the nation's nuclear energy landscape. The bill, anticipated for months, aims to unlock significant private investment in nuclear power generation and, controversially, offer broad legal protections to international nuclear suppliers operating within India. This move signals a significant shift in India's energy policy, balancing ambitious growth targets with the complex realities of nuclear liability and international cooperation.

A Paradigm Shift: Private Sector Entry into Nuclear Energy

For decades, India's nuclear energy sector has been the exclusive domain of government-owned entities like the Nuclear Power Corporation of India Limited (NPCIL). The Shanti Bill 2025 dismantles this barrier, opening the door for private companies - both domestic and international - to participate in the construction, operation, and even financing of nuclear power plants. This represents a radical departure from established norms and is expected to inject much-needed capital and innovation into a sector grappling with delays and escalating costs.

The government anticipates that private sector involvement will accelerate the expansion of nuclear energy capacity, crucial for achieving India's climate goals and meeting the burgeoning energy demands of a rapidly growing economy. By leveraging the efficiencies and expertise of the private sector, the bill's proponents argue, India can overcome the logistical and financial hurdles that have historically plagued large-scale infrastructure projects.

Shielding Global Suppliers: A Controversial Provision

Perhaps the most contentious aspect of the Shanti Bill 2025 is its provision offering significant legal protection to foreign nuclear suppliers. The bill seeks to shield these suppliers from potential lawsuits in Indian courts concerning incidents or damages arising from nuclear activities. This effectively limits their liability in the event of an accident, a move fiercely debated by legal experts and opposition parties.

The rationale behind this protection is to attract global nuclear technology and equipment providers, who have previously been hesitant to invest in India due to concerns over potential legal ramifications. The government argues that without these safeguards, securing advanced nuclear technology and fostering international collaboration would be exceedingly difficult. They point to the complex and expensive nature of nuclear projects, and the need for assured risk mitigation for foreign investors.

Addressing Historical Liabilities and Future Risks

The move also builds upon - and potentially circumvents - earlier attempts to navigate the challenges of nuclear liability, particularly in the aftermath of the Fukushima disaster. Previous legislation aimed to establish a framework for compensating victims of nuclear accidents, but proved cumbersome and insufficient to assuage international concerns. The Shanti Bill 2025 appears to prioritize attracting investment over establishing a robust and comprehensive liability regime.

Critics argue that shielding suppliers from legal action creates a moral hazard, potentially reducing incentives for stringent safety measures. Concerns are being raised regarding the long-term implications for accountability in the event of a nuclear incident, and the potential burden on the Indian taxpayer. Questions also remain about how this legislation interacts with international conventions on nuclear liability.

Ambitious Energy Targets and the Path Forward

India has set ambitious targets for increasing its nuclear power capacity, aiming to achieve 22.5 GW by 2032. Achieving this goal requires substantial investment and the rapid deployment of new nuclear technologies, including advanced reactors and Small Modular Reactors (SMRs). The Shanti Bill 2025 is presented as a critical enabler of this expansion.

However, the bill's success hinges on robust regulatory oversight and stringent safety protocols. The Atomic Energy Regulatory Board (AERB) will play a pivotal role in ensuring that private sector participants adhere to the highest safety standards and that the potential risks associated with nuclear energy are effectively mitigated. Public trust and transparency will also be paramount, requiring ongoing engagement with civil society and affected communities.

The coming parliamentary debate is expected to be vigorous, with lawmakers scrutinizing the bill's provisions related to liability, safety, and the potential impact on India's energy security. The Shanti Bill 2025 represents a bold step towards transforming India's nuclear energy sector, but its ultimate success will depend on striking a delicate balance between attracting investment, ensuring safety, and upholding accountability.