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SHANTI Bill 2025 Strengthens India’s Nuclear Policy Framework, More Support Needed for Expansion: Infomerics

Infomerics Ratings has stated that the proposed SHANTI Bill 2025 represents an important step toward strengthening India’s nuclear power ecosystem. However, the agency noted that additional policy support, financing mechanisms, and supply-chain development will be necessary to unlock large-scale nuclear capacity growth in the country.

The proposed legislation aims to address long-standing challenges that have slowed nuclear expansion in India, particularly those related to liability provisions and limited participation from global suppliers. These issues have historically affected project execution timelines and discouraged foreign technology providers from participating in the sector.

With electricity demand rising and the country pursuing ambitious decarbonisation goals, nuclear energy is expected to play a more prominent role in India’s future power mix. While renewable sources such as solar and wind have expanded rapidly, their intermittent nature limits their ability to provide continuous baseload power. Nuclear power, with high plant load factors and stable output, can complement renewables and help improve overall grid reliability.

Commenting on the policy framework, Rohit Inamdar said the SHANTI Bill introduces category-wise operator liability caps and restricts supplier recourse to specific contractual or intentional fault scenarios. According to him, these changes could reduce supplier risks, strengthen investor confidence, and encourage greater private sector participation in future nuclear projects. He added, however, that tariff competitiveness and the development of a domestic vendor ecosystem will remain critical factors for long-term sector growth.

India’s nuclear power capacity has expanded gradually over the past decade, rising from around 5.8 GW in 2015 to nearly 8.8 GW in 2025. The relatively slow pace of expansion has been partly linked to regulatory complexities and concerns related to the Civil Liability for Nuclear Damage Act, 2010, which increased liability risks for equipment suppliers.

The proposed SHANTI Bill seeks to establish a comprehensive framework covering nuclear development, safety, regulation, and liability, while enabling wider participation from government entities, private companies, and joint ventures through a structured licensing system.

Despite the policy reforms, capacity additions are expected to remain gradual. Infomerics estimates that India’s nuclear power capacity could reach around 22 GW by FY2032, based on projects currently under development and planned expansions—still well below the country’s long-term target of 100 GW by 2047.

According to Jyotsna Gadgil, policy reforms alone may not automatically translate into rapid capacity additions. She emphasised that progress will also depend on fuel security, technological readiness, and execution capabilities across the supply chain.

Overall, Infomerics believes the SHANTI Bill is a significant reform aimed at improving the investment climate for nuclear power in India, but sustained policy support and infrastructure development will be crucial to realise the country’s long-term nuclear energy ambitions.