Whalesbook
National Thermal Power Corporation (NTPC) Limited is forging agreements with foreign entities including Russia's Rosatom, France's Électricité de France (EDF), and US-based Clean Core Thorium Energy to explore nuclear power project collaborations. These developments follow the December passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025. This legislation repeals the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, effectively ending the state's monopoly and opening the nuclear sector to private and foreign participation across the fuel cycle, subject to regulatory oversight.
Legislative Overhaul
The SHANTI Act permits foreign direct investment of up to 49 percent, enabling private players to form partnerships, joint ventures, and engage in manufacturing. Union Minister of State Jitendra Singh described the Act as a historic reform set to "unlock nuclear potential for peaceful, clean, and sustainable energy." This aligns with the government's Nuclear Energy Mission, targeting 100 gigawatts of installed nuclear capacity by 2047. Nuclear power currently constitutes about 3 percent of India's total installed electricity capacity, standing at 8.8 GW.
Investment and Capacity Targets
Over the past decade, India has seen significant growth in its nuclear capacity. Currently, 25 reactors operate across seven sites, contributing approximately 57 terawatt-hours of electricity in 2024-25. An additional 10 reactors, totaling about 8 GW, are under construction, with plans for 10 more in pre-project stages. These projects could potentially increase installed capacity to around 22.5 GW by 2031-32. The government also emphasizes indigenous technologies, including the Bharat Small Modular Reactor (BSMR).
Safety and Liability Concerns
Experts like M V Ramana, a nuclear policy researcher, express skepticism about achieving such ambitious targets, noting historical underperformance. Concerns are also amplified by Soumya Dutta of the National Alliance of People's Movements, who highlights that granting operational control of sensitive materials to private entities heightens accident risks. The Act caps liability at 300 million Special Drawing Rights (SDRs), roughly ₹3,864 crore or $430 million, with the Centre assuming liability beyond this limit. Critics argue this cap is inadequate compared to the colossal costs of past nuclear disasters, such as the Fukushima cleanup exceeding $140 billion. This limited exposure may create a moral hazard, reducing incentives for companies to invest heavily in safety, thereby transferring residual risks to the public. Furthermore, the Act removes the operator's right of recourse against suppliers for faulty equipment or design, departing from established principles of absolute liability for hazardous industries. Legal activist Prashant Bhushan contends this shift deviates from Indian jurisprudence.