In a major legislative overhaul, the Lok Sabha on Wednesday approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, marking a transformative shift in the country’s nuclear energy landscape. The bill repeals the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, consolidating them into a unified, modern legal framework designed to meet India’s growing energy demands and climate commitments.
The Bill, however, was passed amidst major Opposition block walking out in the House.
Moved by Minister of State for Science and Technology Jitendra Singh, the bill represents a significant update to India’s nuclear governance, reflecting the nation’s strides towards nuclear self-reliance and ambitions to expand capacity for clean, reliable power. The legislation aligns with India’s long-term goal of decarbonising its economy by 2070 and achieving 100 gigawatts of nuclear power capacity by 2047.
A key feature of the new law is the dismantling of decades-long state monopoly in the sector, opening the nuclear power industry to private players including major Indian conglomerates such as Adani, Tata Group, Jindal, Reliance, Vedanta, and NTPC. These companies are already in discussions with international nuclear firms from Europe, Russia, and the United States, signalling a new era of domestic and foreign investment under a regulated framework.
The union Cabinet had earlier passed the Shanti Bill, which empowers private firms to build, own, and operate nuclear power plants, thereby ending the exclusive operational control of the Nuclear Power Corporation of India Ltd (NPCIL). Under the new framework, private investors can hold up to 49 per cent equity in projects, while NPCIL retains strategic ownership and control. Foreign participation is also allowed through joint ventures with Indian companies, subject to national security approvals.
The bill promotes innovation and modernisation by encouraging public-private partnerships in Small Modular Reactors (SMRs) and indigenous Bharat Small Reactors, backed by a government commitment of Rs 20,000 crore for research and development. Officials aim to operationalise at least five indigenous SMRs by 2033 to supply continuous power to energy-intensive industries such as steel, cement, and data centers.
Beyond capacity expansion, the legislation introduces a revised, pragmatic nuclear liability regime that caps accident-related liabilities for equipment suppliers, transferring greater responsibility to plant operators. This change addresses longstanding concerns that have hindered foreign investments from companies like Westinghouse and EDF, and aligns India’s liability rules with global standards.
Safety and environmental safeguards have been strengthened, with mandatory environmental impact assessments, stringent waste management protocols, and clear licensing, suspension, and cancellation criteria. Meanwhile, research and innovation activities are exempted from licensing requirements to foster technological advancement.
The bill also establishes new institutional mechanisms, including the Atomic Energy Redressal Advisory Council and a Nuclear Damage Claims Commission, enhancing regulatory oversight, accountability, and public protection.
This landmark legislation positions nuclear energy at the heart of India’s clean energy transition, aiming to accelerate growth, secure energy independence, and bolster economic development while safeguarding safety and environmental standards. It signals a decisive break from the Cold War-era restrictions that shaped India’s nuclear sector, ushering in a new chapter of openness, innovation, and global engagement.
