Recasting India’s Nuclear Law: An Analysis Of The Sustainable Harnessing And Advancement Of Nuclear Energy For Transforming India Act, 2025 

Introduction

In December 2025, Parliament enacted the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, consolidating and replacing India’s earlier nuclear statutes. The Act repeals the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 to establish a unified legal framework aligned with contemporary energy policy, safety standards, and international practice, while supporting India’s long-term objective of significantly expanding nuclear power capacity. 

Explanation

India’s nuclear programme evolved from a State-Based System approach to a Non-Government Controlled (NGC) approach. The early State Based Nuclear activities were limited to the Central Government providing absolute control over all nuclear activities through both the Atomic Energy Act 1962, and the Civil Liability for Nuclear Damage Act 2010. The Civil Liability for Nuclear Damage Act provided for no-fault compensation for injured persons who suffered damages due to a nuclear incident, but the Civil Liability Act created legal complications. The Indian Government recognised that it required legislative changes to address the major limitations of a state-based control structure. As a result of the state’s ability to monopolise control over all nuclear activities by restricting participation to public sector entities, the Government recognised that, in order to create an effective clean energy programme, the Government required a comprehensive review of its entire set of Legislative Overhaul Considerations. 

The amendment of the Atomic Energy Act by the SHANTI ACT will now allow for a regulated entry of private individuals and companies into the Nuclear Sector. For the first time, individuals and companies can apply to the Nuclear Regulatory Commission (NRC) for a license to design, build, own, and operate nuclear plants and facilities. These new non-governmental participants will also be able to participate in certain types of uranium fuel cycle activities, including reprocessing of spent nuclear fuels (pu239), refining (enrichment) uranium to any level allowed by law (currently limited), fabricating fuel, transporting and storing nuclear materials, and some aspects of radioactive waste management. This change represents a structural shift from the previous model, in which public entities had a monopoly on the Nuclear Sector (primarily through the National Power Corporation of India Limited (NPCIL)), to a competitive marketplace that will enable the private sector to generate capital, technology, and managerial capabilities for the building of Nuclear Power Plants (NPPs) and associated facilities. 

At the same time, the SHANTI ACT retains significant levels of government control over the types of activities that pose national security and nuclear proliferation risks, as well as those that require high levels of government oversight. For example, high levels of enriched uranium (> U235 equivalency) cannot be processed by anyone other than the Indian Government or its controlled entities. In the past, these activities were prohibited under the control of the public sector (NPCIL), but with the passage of the SHANTI ACT private entities will now be able to participate in these activities, as well as in the overall economic development of the Nuclear Sector. 

The SHANTI Act has significantly enhanced the regulatory framework governing nuclear energy in India. It has converted the Atomic Energy Regulatory Board (AERB) to a statutory regulator with a legislative basis, moving the AERB from an executive entity to one that operates under laws of Parliament as a regulatory body. The Act provides the AERB with defined authority, defined powers and structured forms of appointment. The Act establishes an operational licensing process that must be followed by anyone wishing to conduct nuclear and radiation activities. Licenses are subject to continuing periodic review, renewal, suspension or cancellation. All licensed facilities must have the same inspections conducted during the construction phase and the operational phase, and inspections apply to all stages of the construction and operation of the facility. The regulatory oversight has also been expanded to include medical, industrial, agricultural and research applications of nuclear technology, creating a consistent application of safety throughout the many areas in which nuclear technology is utilized. 

The SHANTI Act has resulted in a major reform to the legal framework governing liability associated with nuclear activities. The SHANTI Act replaces the single uniform cap placed on operators for liability with a liability structure that reflects the level of reactor type and reactor capacity. The liability of manufacturers and suppliers has been specifically excluded within the law because of the strong position of the AERB regarding the performance of a manufacturer’s equipment and materials. The centrally located government (the Central Government) serves as the primary carrier of liability above the limits of the licensing operator’s liability. In addition, all operators are required to have insurance or financial security as a way of covering their liability under the SHANTI Act. In addition, the definition of nuclear damage has been expanded to include damage to the environment as a way of reflecting how risks and remediation can be managed effectively today. 

Conclusion

The SHANTI Act, 2025 represents a decisive reconfiguration of India’s nuclear legal regime. By combining expanded private participation with reinforced regulatory control and sovereign oversight of strategic functions, it seeks to balance growth, safety, and security. Its success will depend on effective regulation, transparent governance, and sustained attention to environmental and liability concerns as India pursues large-scale nuclear expansion.