Examine how the SHANTI Act, 2025 transforms India's nuclear energy governance and its implications for private sector participation.

Q. Examine how the SHANTI Act, 2025 transforms India's nuclear energy governance and its implications for private sector participation. (15 marks, 250-350 words)

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, which received Presidential assent on 21 December 2025, replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 with a single framework [1]. It ends the State's six-decade operational monopoly, making nuclear power a vehicle for India's clean-energy transition rather than a purely strategic preserve.

Transformation of governance architecture - Legal consolidation: two standalone statutes — one governing atomic energy, one governing damage liability — are merged, removing the regulatory duality that deterred investors [1]. - Redefined State role: the Government shifts from sole operator to licensor and regulator, retaining exclusive control over the nuclear fuel cycle, waste management and security operations [1]. - Calibrated liability: a tiered operator liability of ₹100 crore to ₹3,000 crore graded by plant capacity replaces the earlier uniform, open-ended supplier-liability concern [1]. - Regulatory gatekeeping: any facility requires a Central Government licence plus safety authorisation from the Regulatory Board [1].

Implications for private participation - Entry of private capital: private Indian companies and joint ventures may now build, own and operate plants, supporting India's ambitious nuclear capacity roadmap [1]. - Fuel security linkage: the July 2026 Administrative Arrangement under the India-Australia Civil Nuclear Cooperation Agreement operationalised long-term Australian uranium supply under IAEA safeguards, enabling private-to-private fuel contracts [2]. - Concerns: safety culture in commercially-driven entities, capped liability potentially shifting residual risk to the exchequer, and land acquisition and public trust deficits around new sites remain unresolved [3].

The Act therefore marks a decisive shift from State monopoly to regulated market, aligning nuclear governance with India's net-zero and energy-security objectives. Its success will rest on an adequately empowered and independent regulator, transparent liability adjudication, and phased entry that builds public confidence — ensuring that private efficiency reinforces, rather than dilutes, the safety-first ethos the framework promises.

(~315 words)

Sources: 1. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 — PIB — assent date, repeal of the 1962 and 2010 Acts, private participation, tiered liability, retained government control, licensing 2. India-Australia Civil Nuclear Cooperation — PIB Factsheet — 2026 Administrative Arrangement operationalising uranium supply under IAEA safeguards 3. Parliament Question: Nuclear Energy Sector — PIB — regulatory, safety and siting considerations in expanding nuclear capacity