NITI Aayog has begun stakeholder consultations on the SHANTI Act, 2025, which allows private firms to own and run nuclear power plants. This move is part of India’s push to reach 100 GW of nuclear capacity by 2047. Investors should monitor how the final regulatory framework handles foreign investment, safety liability, and long-term project financing.
NITI Aayog held high-level discussions on Saturday regarding the rollout of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025. This legislative change ends the state-led monopoly in the nuclear sector, opening the door for private companies to enter the power generation space. The transition is central to India's goal of reaching 100 GW of nuclear energy capacity by 2047, a major component of the national clean energy strategy.
Regulatory Framework and Oversight
The consultation focused on creating a functional framework that balances private interest with national safety standards. The SHANTI Act replaces legacy laws including the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage (CLND) Act of 2010. A core feature of the new law is the formal statutory recognition of the Atomic Energy Regulatory Board (AERB). By giving the regulator more authority, the government aims to ensure that private operators adhere to rigorous global safety benchmarks, which is a critical condition for operational licenses.
Investment and Operational Risks
For investors, the most important aspect of the new law involves the financial and legal mechanics of nuclear projects. Because nuclear facilities require massive initial capital spending and carry long gestation periods, participants discussed specific FDI provisions and long-term financing models. One of the major hurdles being addressed is the insurance and liability framework. Managing the risks of nuclear operations is essential to attract private capital, as nuclear plants carry unique long-term financial and safety responsibilities compared to coal, wind, or solar projects.
Impact on Domestic Supply Chains
The government is also prioritizing the development of a domestic manufacturing ecosystem to support these private projects. The discussions highlighted the need for resilient supply chains and a specialized workforce. For companies involved in heavy engineering, construction, and power equipment manufacturing, the SHANTI Act creates a new potential revenue stream. However, the ability of these companies to successfully participate will depend on their capacity to meet stringent safety requirements and manage the technical complexities associated with nuclear power. The next important steps for market participants will be the release of final operational rules and the notification of specific tender processes for private-sector nuclear facilities.