The Lok Sabha passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (Shanti) Bill, 2025, on December 17. The Bill aims to modernise India’s civil nuclear framework and accelerate nuclear power expansion.

If Parliament enacts the Bill, it will repeal the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. The new law will replace them with a single framework. This framework will govern nuclear power generation, safety rules, liability, compensation, and non-power uses of nuclear radiation.

The government says the Bill is vital for India’s clean energy goals. Opposition parties, however, raised concerns over safety, regulation, and private participation.

What the Shanti Bill Proposes

The Shanti Bill introduces one comprehensive law to regulate nuclear energy and ionising radiation in India. The Bill covers both power and non-power uses. These include health care, agriculture, industry, and scientific research.

At present, multiple laws govern licensing, safety, and liability. The Bill seeks to replace this fragmented system. It proposes a single statute covering licensing, safety approvals, regulation, liability, compensation, and oversight.

Why the Bill Matters

The Bill supports the government’s plan to sharply increase nuclear power capacity over the next two decades.

The government plans to develop Small Modular Reactors and indigenous reactor designs. It says private investment is necessary to raise capital, bring technology, and speed up execution.

The Centre argues that nuclear power will provide stable, round-the-clock clean electricity and reduce dependence on fossil fuels.

Why the Government Wants New Nuclear Laws

India has largely kept its nuclear sector under state control. Public sector entities dominate nuclear power generation. The government says this model no longer suits India’s growing energy needs. It says the old laws were designed for a smaller programme.

During the Lok Sabha debate, Jitendra Singh called the Bill a “historic” reform. He said it would expand nuclear power and cut fossil fuel use. He also said it would ensure continuous clean energy.

Jitendra Singh referred to Homi Bhabha’s vision and linked the Bill to Prime Minister Narendra Modi’s climate and development agenda.

The government also linked the Bill to India’s net-zero target for 2070 and wider use of nuclear technology in health care and agriculture.

Private Companies Get Entry Into Nuclear Power

The Bill proposes to end the effective state monopoly over nuclear power generation. Until now, public sector companies, mainly the Nuclear Power Corporation of India, handled most nuclear projects.

Under the new law, Indian private companies and joint ventures can apply for licences. The central government must approve them. These entities can build, own, operate, and decommission nuclear power plants. They can also handle fuel fabrication and storage.

The Bill bars foreign companies or foreign-controlled entities from holding licences. The government will retain control over uranium enrichment, spent fuel reprocessing, and heavy water production.

Safety and Regulation Framework

The Bill gives statutory status to the Atomic Energy Regulatory Board (AERB). At present, the AERB operates through executive orders. The new law will give it legal backing.

The AERB will set safety standards and regulate radiation exposure. It will issue safety approvals and conduct inspections. It will enforce compliance at nuclear facilities. Authorities can suspend or cancel licences if they find safety violations or public interest concerns.

The Bill also proposes an Atomic Energy Redressal Advisory Council. Appeals can move to the Appellate Tribunal for Electricity and the Supreme Court.

Liability and Compensation Rules

The Bill keeps the principle of no-fault liability. Victims will not need to prove negligence to claim compensation. The operator of a nuclear installation will carry primary responsibility. The Bill sets liability limits in its schedules.

Operators must maintain insurance or financial security. The central government will step in beyond the operator’s limit in specific cases.

Shanti Bill proposes a Nuclear Damage Claims Commission to decide compensation claims. The Bill removes statutory supplier liability introduced in 2010. Operators can seek compensation from suppliers only if contracts allow it or if damage results from a deliberate act.

Why Supplier Liability Faces Criticism

Congress MP Manish Tewari opposed the Bill. He demanded that Parliament send it to a Joint Parliamentary Committee. He said several provisions lack clarity. Tewari questioned the independence and role of the nuclear regulator. He also raised safety concerns.

Outside Parliament, Tewari said the opposition walked out after the government ignored key questions. He asked why suppliers would face no liability even if faulty equipment caused a nuclear accident.

Shashi Tharoor Calls the Bill a “Dangerous Leap”

Congress MP Shashi Tharoor criticised the Bill during the debate. He called it a “dangerous leap into privatised nuclear expansion”. Tharoor warned that profit motives must not override safety, environment, and justice for victims.

Tharoor questioned the broad licensing powers. He said allowing “any company or person” could increase private control and systemic risk.

He also criticised the liability cap. Tharoor said it fails to reflect the costs of disasters like Fukushima and Chernobyl. He challenged the claim that nuclear energy is “clean and abundant” without addressing long-term risks.

What Happens Next

The Lok Sabha has passed the Shanti Bill. The Rajya Sabha must still approve it before it becomes law.