Overview of the SHANTI Act, 2025

Introduction

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (in short, SHANTI Act) has recently received assent of the President on 20^th December 2025.  SHANTI Bill was one of the highly debated Bills passed by the Parliament. It received a lot of oppositions on the issues such as privatization of nuclear energy sectors, omitting liabilities of suppliers as it existed under previous nuclear energy laws, accountability and transparency issues, and other amendments the Bill intended to introduce.

SHANTI Act, 2025 is a recently born law which replaces previous atomic energy laws: Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act, 2010. The SHANTI Act, 2025 streamlines and consolidates the previous nuclear energy legal regime, which was scattered under the Acts of 1962 and 2010.

The previous Act of 1962 provided for development, control and use of atomic energy in India for peaceful purposes and to ensure the welfare of the people. Act of 2010 established a legal framework for compensating victims of nuclear incidents in India affixing operators’ liability.

However, there were several issues which were not addressed under these Acts such as role of private actors in nuclear energy regime, a structured framework, improper dispute settlement mechanism, various structural and regulatory issues, etc. Moreover, the provisions of these Acts had become obsolete, failing to address changing nature of nuclear energy sector.

Keeping in mind these legal gaps, SHANTI Act, 2025 seeks to address the evolving nature of Nuclear energy sector, thus providing a comprehensive legal framework covering complete nuclear life cycle- siting, construction, operation as well as decommissioning of nuclear facilities, including effective radioactive waste management, licensing, ensuring strict operator’s liability (no-fault liability principle being retained), private participation, providing statutory recognition to Atomic Energy Regulatory Board (hereinafter referred to as AERB).

Objectives

The object of SHANTI Act is to fulfil the clean energy needs of viksit Bharat, as expressly provided by the Act itself. In order to reduce dependency on carbon for energy needs and to achieve the goal of long term decarbonization till 2070, the Act seeks to facilitate and expedite the growth of nuclear energy.  

Further, with the expanding commitment of India towards clean energy, the Bill was introduced in the Parliament with the object to pave a way for faster growth of nuclear capacity of India. Currently, 24 reactors are operating in India across seven locations with total installed capacity of 8.78 GW. However, the government of India seeks to achieve 100 GW capacity till 2047, as a part of Nuclear Energy Mission.[1] 

To accelerate the growth of nuclear energy, the Act seeks to open the doors of nuclear energy sector for private entities by removing existing impediments and ambiguities under the previous laws on the entrance of private entities.

Further, the Act also intends to provide a regulatory framework which will ensure safe extraction of nuclear energy and ensuring proper management of radioactive waste. It also provides for operators’ liability in case any nuclear incidents occur and establishes a compensation mechanism in case of any such incidents. These frameworks ensure that no negligence occur on the part of operators who are involved in activities related to nuclear energy.

Significant changes brought by the SHANTI Act

The Act consists of 10 Chapters, 91 Sections and 3 schedules. Significant changes have been introduced by this Act in the nuclear energy laws that existed previously.

Territorial jurisdiction

Section 53(d) of the Act provides for the compensation of nuclear damage occurred in foreign territory resulting from a nuclear incident in      India. This provision was not there in previous 2010 Act which dealt with compensation of nuclear damage.

Entry of private sectors

Before enactment of SHANTI Act, 2025, under Act of 1962, only government entities (Department of Central Government, authority, institution, corporation established by Central Government, Government Company) could obtain license for the specified activities.[2]

As per Section 3 of the SHANTI Act, 2025, license for specified activities can be granted to any other company (other than government company) or joint venture of government and non-government entity.[3] It means that now investments in this sector can be made by non-government entities.

However, certain sensitive nuclear fuel-cycle activities are kept reserved for the Central Government or wholly owned institutions.[4]

Operator’s right of recourse

Operator’s right of recourse means the right of the operator to claim reimbursement from another party due to whose fault such nuclear damage actually occurred. This right of operator comes into play when he is made to pay the compensation for nuclear damage.

Before SHANTI Act, under Act of 2010, the operator had right of recourse in three situations: firstly, where there is an express contract in writing to that effect, secondly, from supplier supplying defective or sub-standard material or equipment and thirdly, from any individual who has committed or omitted an act with the intention of causing such nuclear damage.[5]

However, in the SHANTI Act, the second condition of right of recourse has been removed. Under this Act, the operator has no right of recourse against the supplier.[6]

Fixation of maximum caps

Under the Act of 2010, if nuclear reactor was having thermal power equal to or more than 10 MW, the liability of an operator would be 1500 Crores. However, the new SHANTI Act, under its second Schedule formulates a tiered system providing for maximum liability of operator based on thermal power of the reactors. The cap has been fixed as follows:

Reactors having thermal power:

Up to 150 MW- liability up to 100 Crore

150 – 750 MW- Liability up to 300 Crore

750-1500 MW- Liability up to 750 Crore

1500- 3600 MW- Liability up to 1500 Crore

Above 3600 MW- Liability up to 3000 Crore

The liability of operators is based on no-fault principle. It means the operator will be liable even if he has no fault in causing the nuclear damage. As nuclear damage is very hazardous in nature, therefore, liability has been based on no-fault principle and victim are to be compensated regardless of operator’s fault or negligence.

This principle has been retained in the new SHANTI Act, 2025.

Amendment in the Patents Act, 1970

As per Section 4 of the Patents Act, 1970, “No patent shall be granted in respect of an invention relating to atomic energy falling within sub-section (1) of section 20 of the Atomic Energy Act, 1962 (33 of 1962)”.

However, the new Act has changed this position by amending the Patents Act. Section 38 of the SHANTI Act, 2025 provides that the patents may be granted for inventions which are for the peaceful uses of nuclear energy and radiation. However, such invention if in the opinion of Central Government is sensitive in nature and have national security implications, shall not be patentable.

A corresponding amendment has been introduced in Section 4 of the Patents Act, 1970 that the patents may be granted to inventions relating to nuclear energy, subject to Section 38 of the SHANTI Act, 2025.

Right to information

The earlier nuclear laws did not provide for any exemption of information. However, Section 39 of the SHANTI Act provides for exemption of certain information from being disclosed by declaring them as restricted information if it is in the opinion of the government detrimental to national security or public interest.

Atomic Energy Regulatory Board (AERB)

The SHANTI Act provides statutory status to the AERB (Section 17) for efficient regulatory mechanism. It provides that the Board constituted by exercising power under Section 27 of the Atomic Energy Act, 1962 shall be deemed to be constituted under the SHANTI Act.

Members: A Chairperson, a whole-time member, and part time members not exceeding seven.

The Chairperson and whole-time member shall be person of eminence in the field of nuclear energy.

Section 24 of the Act provides for the powers and functions of the AERB.  Its primary function is to ensure that the use of radiation and nuclear energy is safe for health of workers, public and environment.

The Board is also responsible for granting safety authorization to a person who seeks to manufacture, possess, use, export, import, etc. any radioactive substance and radiation generating equipment or seeks to establish, operate or decommission a radiation facility or undertake associated activities.[7]

The Act of 2010 only provided that the AERB shall notify the nuclear incident, but did not provide any statutory recognition to it.[8] This gap has been filled by SHANTI Act.

Atomic Energy Redressal Advisory Council

Section 47 of the SHANTI Act 2025 provides for establishment of Atomic Energy Redressal Advisory Council.

Members: ex officio members–

Chairperson of the Atomic Energy Commission: Chairperson;

Members: Director of the Bhabha Atomic Research Centre, Chairperson of the Atomic Energy Regulatory Board, and Chairperson of the Central Electricity Authority.

Function of the Council is to provide redressal to any licensee or holder of safety authorisation or any person aggrieved by an order or decision of the Central Government or the Board. Such persons may file a review application to Atomic Energy Redressal Advisory Council and the Council decides the application as per Section 48.

Previous nuclear energy laws did not provide for establishment of Council.

Analysis

The new SHANTI Act, 2025 is an Act which replaces the previous atomic energy laws. Significant changes have been brought by this Act to address the expanding needs of nuclear energy and related global commitments of India.

The Act streamlined the existing nuclear energy laws and introduced several modifications in the existing systems. It has expanded the jurisdiction for claiming damages which was a much-needed keeping in view the objectives of the Act itself. 

The Act improvised the dispute redressal mechanism in this sector by establishing an atomic energy redressal advisory council for dealing with the review applications. The Act also formally recognized AERB as a statutory body thus making the regulatory mechanism more efficient than earlier.  

Some of the provisions of the new Act have been severely criticized. Opening the nuclear sector for private actors is being severely opposed on the ground that it will be detrimental to the public safety and environment. Generally, private companies are more concerned about their profit rather than public safety and environment. Therefore, this attitude of private companies is really a matter of serious concern, especially when it comes to their involvement in nuclear sector.

Shashi Tharoor, the Congress MP from Thiruvanathapuram remarked while the discussion on the Bill was going on in the House “this kind of broad subjective exemption power undermines the very safeguards the legislation claims to establish. It will provide laxity in due diligence in a hugely critical sector and private players will lobby for exemptions to engage in profiteering at the expense of public safety”.[9]

The basis of this criticism lies in section 44 of the new Act. The provision provides for the exemption of any plant, facilities, prescribed substance or quantity of prescribed substance or prescribed equipment and technology from the requirement of license or any liability or any other provision of the Act by the Central Government with prior approval of Atomic Energy Commission if the Government is of the opinion that the risk involved is insignificant.

It is being argued that wide discretion has been given in the hands of the government and the private actors may act in a way or plan their activities in such a manner as to persuade the Government to grant exemption.

However, as a matter of fact it will not be that easy to take benefit of the exemption as the Private actors may undermine the welfare of public and environmental aspects, but the Government will have to consider these aspects while granting exemption. However, unless and until it becomes clear that what will be threshold of ‘insignificant risk’, it cannot be actually determined that whether this provision is good or bad. The Act does not clarify this aspect of section 44. Therefore, it will depend on the practice of the Government and private actors.

Therefore, whether privatisation is good or bad will actually be determined by the actual practices and consequences of their actions rather than the provisions itself. However, this till now, this criticism does not seem to be pointless and illogical, unless the actual practices and consequences successfully disprove these assumptions.  

Further, the provision limiting the scope of the right of recourse of the operator is also being criticised. The Act removes the supplier’s liability clause that existed under Act of 2010. This provision has completely absolved the suppliers from the liability which he might have incurred for nuclear damages occurred due to sub-standard or defective material supplied by him. It has increased the liability of the operator himself.

It is also being argued that fixing the operators’ liability on the basis of capacity of the reactor rather than amount of the damage occurred undermines the polluter pays principle.

Provision relating to restricted information seems to be redundant as similar provisions already exist in the Right to Information Act, 2005. This provision seems to dilute the accountability and transparency part.

Conclusion

SHANTI Act is a huge move towards the clean energy transition. Even if some of the provisions of the Act is being severely criticized, it can be termed as a pivotal step towards modernization of nuclear laws. It has formulated an integrated and a unified legal system for regulating nuclear energy sector, dealing comprehensively with all the matters related to nuclear energy sector. It has also removed existing ambiguities in the previous laws and addressed the developing energy needs of India.

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[1] doc20251219739001.pdf.

[2] Section 14 of Atomic Energy Act, 1962.

[3] Section 3(c) and (d) of the SHANTI Act, 2025.

[4] Section 3(5) of the SHANTI Act, 2025.

[5] Section 17 of the Civil liability of nuclear damage Act, 2010.

[6] Section 16 of the SHANTI Act, 2025.

[7] Section 4 of the SHANTI Act 2025.

[8] Section 3 of the The Civil Liability For Nuclear Damage Act, 2010.

[9] India nuclear law reform | SHANTI bill a dangerous leap into privatised nuclear energy, Shashi Tharoor warns – Telegraph India