Cabinet Clears SHANTI Bill to Open Nuclear Power Sector

The Union Cabinet, chaired by Prime Minister Narendra Modi, on December 12 approved a landmark legislation—the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025—to open India’s tightly regulated civil nuclear power sector to private participation. The move aligns with India’s long-term energy transition goals and its ambition to scale up nuclear power capacity to 100 GW by 2047.

Ending Exclusive Public Control

Until now, India’s nuclear power sector has been largely closed to private companies, with electricity generation and major segments of the nuclear fuel cycle dominated by Central Public Sector Enterprises (CPSEs) such as the Nuclear Power Corporation of India Limited (NPCIL) and other public sector units.

The SHANTI Bill dismantles this exclusive framework by providing a comprehensive legal structure that enables private investment in areas previously restricted to government entities, while retaining safeguards related to safety, security, and strategic interests.

Alignment with National Nuclear Energy Mission

The Bill gives legislative backing to the National Nuclear Energy Mission, announced in the Union Budget 2025, which sets out an ambitious roadmap to increase India’s installed nuclear power capacity from the current ~8 GW to 100 GW by 2047—a nearly tenfold expansion.

Finance Minister Nirmala Sitharaman, in her February Budget speech, had signalled the government’s intent to open up the nuclear power sector to private participation as part of India’s clean energy and decarbonisation strategy.

Private Sector Entry into Nuclear R&D

A major feature of the SHANTI Bill is the opening up of research and development (R&D) in civil nuclear technologies to private players. This includes the design and development of Small Modular Reactors (SMRs)—advanced reactors with power capacities ranging from less than 30 MWe to over 300 MWe.

Boost for Small Modular Reactors (SMRs)

In the Union Budget 2025–26, the government allocated ₹20,000 crore for the design, development, and deployment of SMRs, with a target to operationalise indigenously developed SMRs by 2033.

Under the Nuclear Energy Mission, dedicated funds have been earmarked for the R&D of the 200 MWe Bharat Small Modular Reactor (BSMR-200), which is in an advanced stage of receiving administrative and financial sanction.

Key Features of Bharat SMR

• Capacity: 200 MWe (BSMR-200)
• Technology: Proven Pressurised Water Reactor (PWR) design
• Fuel: Slightly Enriched Uranium (SEU)
• Developer: Bhabha Atomic Research Centre (BARC)
• Proposed Lead Site: Tarapur Atomic Power Station, Maharashtra

In addition, BARC is also developing a 55 MWe Small Modular Reactor (SMR-55), with its lead unit also proposed at Tarapur.

Role in Industrial Decarbonisation

SMRs are seen as a promising technology for industrial decarbonisation, particularly in scenarios requiring reliable and continuous power supply. They are being developed with specific objectives, including:

• Repurposing retiring fossil fuel-based power plants
• Serving as captive power plants for energy-intensive industries
• Providing off-grid power in remote and isolated locations

Their modular construction allows for shorter construction timelines and greater flexibility in siting.

Brownfield and Off-Grid Applications

Small Modular Reactors can be deployed at brownfield sites, especially where coal- or gas-based plants are being phased out, as well as in off-grid areas and industrial clusters where large nuclear plants are not feasible.

Sources: TH & PIB