The SHANTI Bill 2025: Integral Reform of Indian Nuclear Law Framework

The SHANTI Bill, 2025: A significant proposed law to unify India’s nuclear power laws, reform the liability regime, and withdraw obsolete statutes, thereby making the private sector’s role in nuclear energy subject to strict regulation. This note details the purposes and intentions of the Bill, its major provisions, legal ramifications, critiques, and the likely impact on India’s energy scenario and constitutional framework.

Introduction

India’s nuclear power industry has long operated under a complicated and scattered legal framework rooted in post-independence and Cold War–era laws. Although these laws enabled India’s strategic and civilian nuclear capabilities, they are now seen as outdated, constraining, and misaligned with present-day energy, safety, and investment requirements.

In this context, the SHANTI Bill, 2025, emerges as a significant legal reform. The Bill aims to modernize India’s nuclear law regime, unify several laws under one umbrella framework, rationalize liability provisions, and carefully open the sector to private and non-governmental players while maintaining firm state control.

The Bill is one of the most transformative legal reforms in India’s energy sector in generations, sparking heavy interest among legal experts, legislators, and industry stakeholders.

Background: India’s Nuclear Legal Framework

To understand the SHANTI Bill, it is crucial to examine the current legal structure regulating nuclear power in India.

Key Existing Laws

The Atomic Energy Act, 1962

Reserves exclusive power over nuclear energy and materials for the central government.

Civil Liability for Nuclear Damage Act, 2010 (CLNDA)

Creates legal liability and compensation mechanisms for nuclear accidents, including the controversial “right of recourse” against suppliers.

Radiation Protection and Safety Rules

Regulate nuclear safety and radiation exposure.

Problems with the Current Framework

Fragmented and overlapping laws
Strong barriers to private investment
Supplier liability provisions deterring foreign and domestic suppliers
Lack of a unified, modern regulatory statute
Incompatibility with international nuclear commerce norms

The SHANTI Bill, 2025, seeks to address these structural challenges.

What is the SHANTI Bill, 2025?

SHANTI is an acronym embodying the bill’s guiding principles—Safety, Harmonization, Accountability, Nuclear Transparency, and Innovation.

The Bill proposes a single statute to govern:

Nuclear energy production
Nuclear fuel fabrication and supply
Safety and regulatory oversight
Liability and compensation mechanisms
Public–private participation models

India’s sovereign control over nuclear weapons and strategic assets remains intact.

Aims and objectives of the SHANTI Bill, 2025

Statute Law Revision—Abolish or combine laws that are outdated to create a simpler, more accessible legal framework.

Advocating Clean Energy Transition—Promote nuclear power as a central pillar of India’s low-carbon energy policy.

Calling for Nuclear Liability Rationalization – Strike a balance between victim compensation and reasonable liability limits to attract investors.

Facilitating Private Entry—Permit private participation in a controlled manner through strict licensing.

Safety and Regulation Enforcement—Establish a credible, independent, and professionally qualified nuclear regulatory authority.

Major Provisions

Repeal and Replacement of Existing Acts
- Amend the Atomic Energy Act, 1962
- Repeal or modify the CLNDA, 2010
- Integrate radiation and safety regulations
- Create a single statutory governance framework
Nuclear Liability Reform
- Set clear caps on operator liability
- Create defined compensation funds for victims
- Restrict supplier “right of recourse” to willful misconduct or gross negligence
- Align with international nuclear conventions
Entry of the Private Sector
- Permit private companies in non-strategic nuclear activities
- Allow joint ventures with public sector undertakings
- Ensure ownership and control remain with the government
Independent Nuclear Regulatory Authority
- Statutory, autonomous regulator with authority to:
  - License nuclear facilities
  - Enforce safety standards
  - Order shutdowns
  - Impose penalties
Safety, Transparency, and Accountability
- Mandatory public safety disclosures
- Emergency preparedness
- Victim compensation tribunals
- Community and environmental safeguards

Constitutional and Legal Implications

Union Legislative Power: Nuclear energy is a Union List subject, giving Parliament exclusive authority.
Federal Cooperation: States may gain consultative roles but not legislative control.
Right to Life (Article 21): Safety provisions must satisfy environmental and public health jurisprudence.

Benefits of the SHANTI Bill, 2025

Boosts nuclear power capacity
Attracts investment and technology
Improves regulatory clarity
Enhances nuclear safety
Supports climate goals
Reduces judicial uncertainty

Criticisms and Concerns

Potential dilution of supplier accountability
Fears of partial privatization of a sensitive sector
Environmental and safety apprehensions
Risk of regulatory capture
Public distrust due to past controversies

Future Impact

If enacted, the SHANTI Bill could:

Reshape India’s energy law framework
Establish India as a global nuclear manufacturing hub
Accelerate clean energy transition
Reduce legal disputes
Strengthen global confidence in India’s nuclear governance

Success, however, depends on implementation, oversight, and political consensus.

Conclusion

While doing so, the new SHANTI Bill, 2025, also has historic significance as far as India’s nuclear legal progress is concerned. By modernizing outdated laws, rethinking liability, and thoughtfully allowing private participation, it aims to strike a balance between growth with safety and sovereignty along with sustainability. Its success will ultimately depend on the integrity of enforcement and on public engagement.