The new bill, named the Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India(SHANTI) Bill, 2025, drops a rule that let operators sue suppliers for equipment defects, a provision foreign suppliers have long opposed. Foreign suppliers include General Electric Co , Westinghouse Electric Co and France’s EDF
It also introduces liability limits depending on the size of the reactors, with units larger than 3.6 gigawatts facing a maximum liability of Rs 30 billion rupees ($331 million) and reactors of 150 megawatts or smaller liable to pay a maximum of Rs 1 billion. It proposes a nuclear liability fund to cover accident claims in line with global norms. , according to the published bill
NEW DELHI: The Governmemnt on Monday set in motion steps to end decades of state control over nuclear power, by introducing a bill in parliament that would allow private firms to build and operate plants as the government seeks to make atomic energy central to its clean energy push.
The new bill, named the Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India Bill, 2025, drops a rule that let operators sue suppliers for equipment defects, a provision foreign suppliers have long opposed. Foreign suppliers include General Electric Co , Westinghouse Electric Co and France’s EDF.
The proposed legislation seeks to repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, and replace them with a single, comprehensive law aligned with India’s present and future energy requirements.
It also introduces liability limits depending on the size of the reactors, with units larger than 3.6 gigawatts facing a maximum liability of Rs 30 billion rupees ($331 million) and reactors of 150 megawatts or smaller liable to pay a maximum of Rs 1 billion. It proposes a nuclear liability fund to cover accident claims in line with global norms. , according to the published bill.
The proposed law confines liability to plant operators, which will maintain the right to a legal recourse in case of accidents. The bill does however exclude suppliers from any responsibility and limits the operators’ legal options to individuals who may have intentionally caused damage.
India’s nuclear liability law has been a stumbling block for the sector, impeding its growth despite the nation signing accords with several supplier nations. India currently has about 9 gigawatts of nuclear power capacity, less than 2% of the total energy mix. The government is planning to expand its fleet more than eleven-fold to 100 gigawatts by 2047.
Currently, the Indian Nuclear Insurance Pool (INIP) is a consortium of Indian insurers, led by GIC Re, created under India’s Civil Liability for Nuclear Damage (CLND) Act 2010, providing Rs 1500 crore (approx. $212M) in liability coverage for nuclear operators and suppliers.
The new Bill also proposes a revised civil liability framework for nuclear damage, confers statutory status on the Atomic Energy Regulatory Board, and strengthens mechanisms related to safety, security, safeguards, quality assurance and emergency preparedness.
It provides for the creation of new institutional arrangements, including an Atomic Energy Redressal Advisory Council, designation of Claims Commissioners, and a Nuclear Damage Claims Commission for cases involving severe nuclear damage, with the Appellate Tribunal for Electricity acting as the appellate authority, the statement said.
Private firms will be allowed to import and process uranium, according to the bill. The government has kept strategic activities such as uranium mining, nuclear fuel enrichment and fuel re-processing under government control, and all operators would require licenses.
The new bill, which must be approved by the lower and upper houses of parliament to become law, would allow any “person expressly permitted by the central government” to apply for a licence to enter the nuclear sector, a major shift from decades when only state-run companies could operate reactors.
India’s nuclear sector has been tightly guarded since its first reactor went online in 1969, shaped by Cold War politics and fuel-technology restrictions after its 1974 nuclear test.
State-run Nuclear Power Corp of India Ltd (NPCIL) owns and operates India’s current fleet of nuclear power plants but Reuters reported last year that India was looking to invite domestic private firms such as Tata Power , Adani Power and Reliance Industries to invest about $26 billion in the sector.
The world’s third-largest greenhouse gas emitter plans to expand nuclear power capacity to 100 gigawatts (GW) over the next two decades, more than 12 times the current 8.2 GW.
The proposed bill is closely linked to India’s long-term energy and climate goals. The statement outlines the country’s roadmap for decarbonisation by 2070. To meet these objectives, the Bill emphasises the need to harness indigenous nuclear resources more fully and enable active participation of both public and private sectors, while also positioning India as a contributor to the global nuclear energy ecosystem.
At the operational level, the Bill lays down provisions for licensing and safety authorisation for specified persons involved in the production or use of nuclear energy, along with clear grounds for suspension or cancellation. It seeks to bring under regulation the use of nuclear and radiation technologies in areas such as healthcare, food and agriculture, industry and research, while exempting research, development and innovation activities from licensing requirements, according to an official statement.
Agencies