Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

SHANTI Bill Clears Path for Private Nuclear Investment; US Signals Readiness for R&D Partnership with India

The United States has expressed its willingness to participate in India’s nuclear energy sector and collaborate on joint innovation and research and development (R&D), following Parliament’s passage of landmark legislation easing entry for private players and revising civil nuclear liability provisions.

In a post on social media platform X, the US Embassy in India welcomed the passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, describing it as a step towards strengthening bilateral energy security cooperation and peaceful civil nuclear engagement.

“We welcome India’s new #SHANTIBill, a step towards a stronger energy security partnership and peaceful civil nuclear cooperation. The United States stands ready to undertake joint innovation and R&D in the energy sector,” the embassy stated.

Parliament last week approved amendments to the Atomic Energy framework through the SHANTI Bill, enabling changes to India’s nuclear liability regime. The move is expected to facilitate private sector participation and support India’s long-term objective of achieving 100 GW of nuclear power capacity by 2047.

The reforms build on the 2008 India–US civil nuclear agreement, which allowed India to legally procure nuclear fuel, reactors, and technology from the US and other countries. However, a liability law introduced in 2010—holding suppliers accountable for damages in the event of a nuclear accident—had dampened foreign investor interest in India’s nuclear projects.

Easing Liability, Strengthening Framework

The newly passed legislation eases terms for nuclear operators by shielding suppliers from direct liability. It caps liability based on reactor size and allows the government to establish a fund to cover claims exceeding prescribed limits.

The SHANTI Bill also introduces structural reforms, including provisions for an independent nuclear safety authority and a dedicated nuclear tribunal. Core activities covered under the legislation include exploration of atomic minerals, fuel fabrication, equipment manufacturing, and key aspects of plant operations.

The government has outlined a roadmap to scale nuclear capacity to 100 GW by 2047, with Nuclear Power Corporation of India Ltd. (NPCIL) expected to contribute 54 GW through new plants based on indigenous Pressurised Heavy Water Reactors (PHWRs) and Light Water Reactors, including those developed with foreign cooperation.

India’s current installed nuclear capacity stands at 8.8 GW. During FY 2024–25, nuclear power generation amounted to 56,681 million units, accounting for approximately 3.1% of the country’s total electricity generation.

Role in Net-Zero Transition

Analysts believe the SHANTI Bill could have a lasting impact on India’s energy transition, particularly in supporting the country’s net-zero emissions target by 2070 by reducing dependence on fossil fuels.

Interest from the private sector has already begun to build, with companies such as Tata Power and Adani Group reportedly exploring opportunities to set up utility-scale nuclear power projects.

State-owned non-banking financial companies (NBFCs), including REC, have also indicated plans to expand their nuclear sector lending portfolios. Industry participants have long awaited amendments to the Atomic Energy Act to unlock financing and investment.

Tata Power has stated that it is in discussions with several state governments, including Odisha, Madhya Pradesh, and Gujarat, to identify suitable land parcels for future nuclear power plants.