SHANTI BILL 2025

Introduction

India's big picture for growth over several years is dependent on a reliable, environmentally friendly, and energy, efficient supply that would be able to cater to the needs of sustained economic growth, industrial expansion, and social development. Due to the continuous rise in energy demand coupled with climate action commitments, the role of nuclear energy has become very significant again from a strategic point of view. Nuclear power is a clean energy source that is capable of satisfying the base load electricity demand, can be implemented together with renewable energy sources and contributes to the reduction of carbon emissions.

Given such a scenario, the SHANTI Bill 2025, which stands for the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, is a complete overhaul of the nuclear energy governance framework in India. The Bill aims at upgrading regulatory structures, easing capacity extension, and increasing institutional accountability, thus, conserving sovereign control of strategic assets. What is more significant is that it mirrors a deliberate change in the governing principles, acknowledging that efficient regulation and institutional supervision are equally important as ownership in sectors that are of national interest.

Pre-SHANTI BILL Legislative Framework

Before the SHANTI Bill was passed, the nuclear energy sector in India was governed by a legal framework that was mainly focused on issues of security, strategic autonomy, and public safety. The major law that regulated the sector was the Atomic Energy Act, 1962, together with the rules and structures established by the executive branch, and the Department of Atomic Energy was the one in charge. In addition, the framework was reinforced by the Civil Liability for Nuclear Damage Act, 2010 that was solely concerned with the compensation after the event and not with system governance reform.

The principles of these laws mirrored the international political situations of the decades after independence. Nuclear energy was seen not only as a means of power generation, but also as a vital strategic tool that was closely linked to the national sovereignty. As a result, the State kept the absolute control of all the nuclear energy areas, starting from the ownership and operation up to the regulation and supervision.

Although this method guaranteed centralized control and reduced external risks, it led to a governance model that was very limited, introspective, and conservative in terms of structural change.

Background and Need for Legislative Reform

India's nuclear energy market has undergone changes in its laws and regulations that were aimed mainly at enhancing security, maintaining the country's independence in the nuclear field, and ensuring safety to the public. At the beginning, such a method not only ensured the state's control over the sector, but also minimized the possibilities of external threats. However, over time, this system has experienced some structural problems as well.

The increase in nuclear capacity was kept back for a long time due to a mix of factors such as limited budget, complete dependence on the public sector for implementation, and lack of access to advanced technologies. The area of procedures was fully regulated, and there was no participation of the private sector, which led to even more limitations in the field of innovation and efficiency. As a result, the share of nuclear power in India's total energy consumption stayed at a very low level, while it had great strategic potential.

At the same time, India is confronted with new challenges. The demand for electricity is rising due to the process of urbanization, industrial development, and the growth of digital infrastructure. Obligations under the international agreements on climate change require a departure from the use of fossil fuels. The renewable energy sector is growing tremendously, but it still has the problem of intermittency, which needs to be solved by stable base, load sources. These factors combined resulted in the necessity of rethinking the governance framework of the nuclear sector in India.

The SHANTI Bill is an answer to these facts through its provision that the operation of the state activities will shift from being exclusive to regulated supervision by the state. It thus allows for institutional flexibility while keeping strategic control and public accountability intact.

Structural Limitations of the Earlier Legal Regime

The limitations of the pre, SHANTI framework were becoming more and more visible over time. The concentration of ownership, operational responsibility, and regulatory influence in the State apparatus led to institutional rigidity and limited the adaptive capacity.

Among the most impactful constraints was the absolute absence of private sector involvement, not even by local entities, throughout the entire period. The limitation of this engagement resulted in a deficient access to capital, in a lack of innovation and in obsolete project management capabilities, thus the process of increasing the capacity was moving very slowly. As a result, nuclear power continued to be one of the least significant sources in the total energy mix of India despite its strategic advantage and low carbon potential.

Apart from that, the institutional independence of the regulatory architecture was very limited and, as a result, the regulators were heavily influenced by the executive branch that was also their overseer. This basically led to the reduction of the people's perception of the impartialness of the enforcement and the decline of their trust in it. The lack of a strong, statutory safety regulator with clearly, defined enforcement powers hindered the effectiveness of the transition to risk, based preventive governance. Also, the liability framework, though it was a nice, compassionate idea from the point of view of the victims, caused investment uncertainty. The ambiguities in the statement of financial risks led to the discouragement of long, term involvement and technology cooperation, especially in a sector that is characterized by high capital requirements and long project timelines. Together, these issues have caused slow administration of government affairs, lack of transparency in procedures, and a highly centralized governance structure that has become increasingly out of step with India's changing energy needs and international environmental commitments.

Salient Features of the SHANTI Bill 2025

The SHANTI Bill outlines a new governance structure for nuclear energy in India that combines the goal of growth with safety and the country's sovereignty.

One of the main elements of the Bill is the regulated involvement of private Indian companies in nuclear power generation. This involvement is allowed only through licensing, supervision, and safety checks made by the Union Government. The aim is not to privatize but to increase the capacity of the nuclear sector with the help of a strong regulatory framework.

State control over strategic areas, e. g., nuclear fuel production, enrichment, reprocessing, and radioactive waste management, is, however, ensured to continue. This guarantees that the critical national interests and security remain uncompromised.

Along with establishing a new governance system, the law changes the nuclear liability framework too. It explicitly specifies the operator's liability with certain financial limits and offers government, supported assistance outside those limits. This precision solves the issue of investment hesitations that have been there for a long time without interfering with the public interest. The solution is in line with the notion that safety in the nuclear industry can be better achieved by preventive regulation than by long, lasting litigations after an incident has occurred.

Among other things, the Bill extends the regulatory authority of the nuclear safety regulator as well. It broadens its powers of enforcement, inspection, and compliance. This change is a clear and decisive move towards a preventive, rules, based, and expert, driven regulation system, which is in line with the best practices worldwide.

Constitutional and Legal Foundations

The SHANTI Bill bases its constitutional validity on Entry 54 of the Union List under the Seventh Schedule, which gives Parliament the exclusive power to control atomic energy and related materials. Such a constitutional setup provides for a uniform national policy, a centralized strategic control, as well as the country's adherence to international nuclear obligations.

Moreover, the Bill is very much in line with the Article 21 jurisprudence. The apex court has been interpreting the right to life to mean the right to health, safety, and a clean environment. Given its potential risks, nuclear energy is an area that calls for very high care standards. By committing itself to safety regulation, environmental protection, and institutional accountability, the Bill makes the nuclear governance framework consistent with the constitutional environmental norms.

Additionally, the features of equality and non, arbitrariness as per Article 14, are mirrored in the well, defined licensing steps, the openness in decision, making actions, and giving reasons for administrative decisions. The discretionary powers are regulated by procedural safeguards, thus there is a decreased risk of arbitrary decisions and a higher level of administrative fairness.

Administrative Implications for the Bureaucracy

SHANTI Bill is an important milestone in the gradual decentralization of power that the Indian bureaucracy has been managing, rather gracefully, over the past decade. The governmental apparatus is now poised to undertake roles of a strict regulator, a facilitator, and an institutional guardian, rather than a primary operator of nuclear facilities.

It brings about a significant change in the nomenclature of skills required for the bureaucracy. The effectiveness of the bureaucracy will not be gauged by the mere physical execution of the project but more so by the development of regulatory frameworks, enforcement of compliance, and management of risks.

Administrators are tasked with the responsibility of system architecture, institutional independence, and public trust maintenance. This transition requires more professionalism, technical expertise, and coordination among different departments.

Institutional and Governance Reforms Required

The successful execution of the SHANTI Bill needs a deep focus on building up the institutions. It is a must that regulatory institutions are well equipped with a number of technically qualified personnel and supported by ongoing training programs. There should be a balance between operational autonomy and accountability so as to avoid both regulatory capture and administrative inertia.

Systems for licensing and compliance should be made uniform, open, and limited by time. It is very important investor confidence and public legitimacy to have set procedures, fixed timelines, and documented reasons for them.

Coordination at the level of different ministries is very important when it comes to the governance of nuclear energy which is changing environment regulation, disaster management, land administration, finance, and external affairs. Institutional ways for coordination should become a substitute for ad hoc consultations.

Federal Dimensions and Cooperative Governance

While atomic energy is a Union subject by the Constitution, its use, in any case, will have to be handled by the state governments. The acquisition of land, the rehabilitation of the displaced people, local law and order, environmental monitoring, and emergency preparedness are all within the states' sphere of operations.

Hence the SHANTI Bill is based on the principle of cooperative federalism. Centre, State coordination mechanisms working at their best would be the main instruments to implementation of the project being without any hitch. Having a clear distribution of roles, sharing of information through systems, and communication between institutions will be some of the ways that will help to avert the very few delays, conflicts in jurisdiction and also resistance from the public.

Liability Framework and Preventive Administration

The alteration of the SHANTI Bill's liability regime moves the focus from a compensatory system after an incident to a preventive one by the administration. Thus, it is an upgrade of the administrator’s obligation to keep the monitoring, safety audits, and implementation of regulatory norms going without interruption.

For the government officials, this change of focus indicates that failing to regulate may result in more serious consequences than just procedural misdemeanors. Preventive governance, as the main protection of the public interest, thus makes the presence of the administration all the more necessary.

Transformational Shifts Introduced by the SHANTI Bill

The SHANTI Bill is an adjusted nuclear governance framework which introduces systemic changes while maintaining strategic safeguards.

Firstly, the Bill makes it possible for private Indian nuclear entities to participate in nuclear power generation in a regulated manner through licensing and strict governmental supervision. This is a movement away from absolute monopoly towards supervised institutional pluralism, which is aimed at increasing capacity without compromising national security.

Secondly, the Bill upgrades the regulatory framework by the nuclear safety regulator extending his/her authority, autonomy, and enforcement capacity. This change signifies a shift to a preventive regulation based on expertise, transparency, and continuous oversight.

Thirdly, the revised liability regime provides more clarity and predictability by setting operator liability limits and offering government, supported mechanisms beyond those limits. This solution is a mixture of public protection and economic viability, thus, the focus is changed from post, incident litigation to risk management.

Fourthly, the SHANTI Bill contributes to the enhancement of administrative accountability through the implementation of transparent procedures, specified timelines, and the provision of reasons for decisions. Consequently, it diminishes the problem of arbitrariness and aligns nuclear governance with the constitutional principles of fairness and non, discrimination.

Lastly, the Bill places nuclear energy at the center of Indias clean energy plan where it is seen as a stable source that can be used in conjunction with renewables and as a vital source of energy for the future.

Implementation Priorities for Higher Authorities

The successful implementation of the SHANTI Bill is largely dependent on the administration taking a focused action.

It is very necessary to put a lot of emphasis on capacity building which can be achieved through specialized training programs and acquiring domain, specific knowledge. It is imperative that officers who are in charge of nuclear governance should not only have a technical understanding but also be competent in legal and administrative matters.

It should become a norm for the regulatory authorities to keep a close eye on their operations through regular inspections, independent audits, and real, time monitoring systems. All these instruments should be there to prevent occurrences rather than to respond to them.

Interpersonal communication is another equally important quality. When nuclear power is used, the general populace often experiences fear and worry. Therefore, it is crucial to give the public clear and comprehensive information about safety, environmental protection, and precautions against unanticipated catastrophes in order to maintain their trust and democratic legitimacy.

Conclusion

The SHANTI Bill 2025 is a considerate and visionary change of India's nuclear energy policy. As it is compliant with the constitution and has good governance features, it marks a move towards the system taking over the responsibility, rule of law and green growth.

For the Indian bureaucracy, the Bill is a challenge of the capacity to govern and the maturity of institutions. Its success, in the end, will be determined not by the legislative intent alone, but by the professional administration, the integrity of the regulatory body, and the constitutional values being upheld. Were the SHANTI Bill to be executed with discipline, transparency, and technical skill, it would not only be a pillar of India's clean energy future but also a precedent for sectoral reforms in areas marked by strategic sensitivity.

Author: Muskan Gupta, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.

References

1.     The Government of India, Seventh Schedule, Union List, Entry 54 (Control of Atomic Energy).

2.     Ministry of Law and Justice, Government of India, Atomic Energy Act, 1962 (Act No. 33 of 1962).

3.     Government of India, Ministry of Law and Justice, Civil Liability for Nuclear Damage Act, 2010 (Act No. 38 of 2010).

4.     Government of India, Department of Atomic Energy, Annual Report 2023–2024.

5.     Government of India, Atomic Energy Regulatory Board, Safety Guidelines and Regulations for Nuclear and Radiation Facilities.

6.     M.C. Mehta v. Union of India (Oleum Gas Leak Case), Supreme Court of India, 1 SCC 395 (1987).

7.     Basic Safety Principles, IAEA Safety Standards Series No. SF-1, Vienna, International Atomic Energy Agency.

8.     India's updated nationally determined contribution under the Paris Agreement, Ministry of Environment, Forests, and Climate Change, Government of India.