NITI Aayog has started formal consultations for the SHANTI Act, 2025, aimed at attracting foreign investment and boosting domestic manufacturing in nuclear energy. The reform seeks to create a clear regulatory framework for large-scale projects. Investors may track how this act influences long-term infrastructure spending and the participation of private players in the nuclear supply chain.
NITI Aayog has launched high-level stakeholder consultations regarding the SHANTI Act, 2025, a proposed legislative reform designed to overhaul India's nuclear energy sector. The meeting in New Delhi brought together senior government officials, including Power Secretary Pankaj Agrawal, along with representatives from the Atomic Energy Regulatory Board (AERB) and industry leaders. The goal is to build a regulatory and financial ecosystem that encourages both foreign capital and domestic industrial participation.
FDI and Regulatory Clarity
A primary focus of the consultations is the design of a new foreign direct investment (FDI) framework for nuclear power. Current nuclear energy development in India is largely dominated by public sector entities such as the Nuclear Power Corporation of India Limited (NPCIL). The proposed reforms aim to provide the investment certainty required for global partners to commit capital while maintaining strict safety and national security oversight. For investors, the clarity of these rules will be essential to determine how much private capital can enter a sector that has historically been closed to significant non-government investment.
Financial Models and Supply Chain Development
The discussions also addressed the heavy capital requirements of nuclear infrastructure. Because nuclear projects involve long construction timelines and massive upfront costs, the committee is exploring specialized financing models and insurance frameworks to manage project risks. Simultaneously, there is a push to reduce dependency on imported equipment by strengthening the domestic manufacturing base. The government intends to support this through industrial participation and skill development programs, aiming to create a self-reliant supply chain that can support the expansion of nuclear capacity across the country.
Investor Monitorables
While the SHANTI Act is currently in the consultation stage, its development signals a potential shift toward a more privatized or collaborative model for nuclear energy. Investors should monitor the final draft of the legislation for details on ownership limits, the role of private companies in reactor construction, and the specific incentives provided for local manufacturing. The ability of the government to balance aggressive capacity building with public acceptance and stringent safety standards will be a critical factor in the long-term feasibility of these projects. Tracking future updates on the timeline for parliamentary approval and the specific operational guidelines will be important for understanding the impact on companies involved in heavy engineering, power equipment manufacturing, and infrastructure financing.