India’s Civil Nuclear Framework Enters a New Phase

India’s Civil Nuclear Framework Enters a New Phase

Recently, the US-India Strategic Partnership Forum (USISPF) described the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 as a historic turning point in India’s energy landscape. It termed the legislation the most comprehensive overhaul of India’s civil nuclear framework since Independence, underscoring its domestic and international significance.

The SHANTI Act, 2025 modernises India’s nuclear governance by replacing two foundational statutes—the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010—with a single, unified law. This consolidation addresses long-standing regulatory fragmentation and brings India’s nuclear legal framework closer to contemporary global practices. Importantly, the Act marks a paradigm shift by allowing Indian private companies and joint ventures to participate in civil nuclear power generation for the first time. Licensed private entities may now build, own, operate, and decommission nuclear reactors under government authorisation, significantly expanding the sector’s investment base.

At the same time, the Act preserves strategic state control over sensitive aspects of the nuclear fuel cycle. Uranium and thorium mining, high-level radioactive waste management, spent fuel reprocessing, heavy water production, and enrichment beyond specified thresholds remain exclusively under government or designated public entities. This calibrated approach balances market participation with national security considerations.

A major institutional reform under the SHANTI Act is the granting of statutory status to the Atomic Energy Regulatory Board (AERB). By making the regulator accountable to Parliament and empowering it to issue binding safety authorisations, conduct inspections, and enforce radiation and waste norms, the Act enhances regulatory independence, transparency, and public confidence in nuclear safety.