India Moves to Open Nuclear Power Sector to Private Investment

India has introduced legislation that would open large parts of its tightly controlled nuclear power sector to private investment, marking the most significant overhaul of the country’s nuclear framework in decades aimed at accelerating capacity additions as electricity demand rises and the country tries to cut emissions.

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, known as the SHANTI Bill, was tabled in the Lok Sabha on Monday, 15 December.

The bill would repeal the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, replacing them with a single legal framework for civil nuclear energy, regulation and liability.

In the Statement of Objects and Reasons accompanying the bill, the government said: “India could achieve self-reliance in nuclear fuel cycle technology,” while arguing that expanded nuclear generation is needed to deliver “clean energy security and reliable round-the-clock power” for emerging needs including national data centers and “future ready applications.”

A central change is the opening of licensing to a wider set of entities.

If enacted, the bill would allow private companies and joint ventures to build, own and operate nuclear power facilities and associated infrastructure, a departure from India’s long-standing model in which nuclear energy has been dominated by state-owned entities.

The government has argued that expanding nuclear capacity is necessary to meet rising electricity demand while supporting decarbonization goals, including the growth of power-intensive sectors such as data centers and advanced manufacturing.

The legislation retains state control over sensitive activities, including uranium enrichment, reprocessing of used fuel and heavy water production, which would remain the exclusive domain of the central government.

It also seeks to strengthen the regulatory framework by granting statutory status to India’s nuclear regulator and updating rules governing licensing, safety oversight, radiation use in healthcare and industry, and emergency preparedness.

A revised civil liability regime is intended to address investor concerns around nuclear accident risk. The Economic Times reported that the government is considering graded liability limits for nuclear operators under the new framework, a move that could reduce uncertainty for private participants and suppliers.

India currently operates 24 nuclear reactors with a combined capacity of about 8.1 gigawatts, with additional reactors under construction and planned, according to the World Nuclear Association. The government has said private capital will be required to accelerate expansion as nuclear power becomes a larger part of India’s clean energy mix.