Atomic Energy Bill 2025 (SHANTI Bill)
Syllabus: Governance [GS Paper-2]
Context
The Atomic Energy Bill 2025, which is officially known as the Sustainable Harnessing of Advancement of Nuclear Technology to India (SHANTI), has been passed by the Union Cabinet. This historic act will revolutionize the nuclear energy industry of India by renovating the policy and allowing foreign and domestic investments, and streamlining the Indian nuclear system to match international standards.
Background
In India, the nuclear industry has been regulated by the Atomic Energy Act 1962 to limit nuclear operations to state agencies and a severe state monopoly. The SHANTI Bill represents a paradigm shift, and seeks to end this monopoly and allow the sector to be regulated to allow foreign and private entry. The relocation is timed to occur amidst the efforts of the Indian nation in the quest to sustain the growing energy needs, fulfill climate pledges, and have a strategic energy security independence.
Key Features of the SHANTI Bill
- Participation by the Private and Foreign: The Bill gives the provision of holding 49 percent of equity of the nuclear power project by the private companies and is allowed to invest through foreign direct investment (FDI) under government control. This incorporates the exploration activities, fuel fabrication, equipment production, plant operation and research and development (R&D), especially in Small Modular Reactors (SMRs).
- Single Legislation: SHANTI Bill replaces multiple current nuclear legislations into a unified full legislation that enhances clarity of regulations and increases investor confidence. It substitutes the old-fashioned provisions with new regulations that are transparent.
- Independent Safety Authority: This will see the establishment of a new independent nuclear safety regulator, which is independent of the atomic energy establishment. This makes it more transparent, conforms India to the International Atomic Energy Agency (IAEA) standards, and develops the confidence of people in nuclear proliferation.
- Climate and Energy Security: Nuclear energy is central to India’s strategy for deep decarbonization and net-zero by 2070. The Bill supports a diversified energy basket, reducing dependence on coal and imported gas while strengthening resilience against global fuel price shocks.
- Economic and Industrial Impact: The reforms will attract high value investment, skilled jobs, and improve the industry of the heavy engineering and precision manufacturing in India. They also make India a hub of nuclear technologies in the world.
Strategic Implications
- Expansion targets of energy: India has targets of 100 GW of nuclear capacity by 2047 compared to less than 8 GW of nuclear capacity now. This will be a complement to the solar, wind, and green hydrogen, and the transition of clean energy in India.
- Waste Management and Federal Coordination: Although safety and expansion are covered by the Bill, long term disposal of radioactive waste is an issue that policy needs to be reinforced. The coordination of land, water, and local livelihood will depend on centre-state coordination.
Conclusion
SHANTI Bill 2025, is an inflection point in the history of energy in India. Through an overhaul of governance, allowing the involvement of the private sector, and reinforcing safety regulation, the Bill provides the basis of a scalable, safe, and climate-friendly nuclear future.
Source: ET
UPSC Prelims Practice Question
Q. With reference to the Atomic Energy Bill, 2025 (SHANTI), which of the following statements is/are correct?
- The Bill allows private companies to hold up to 49% equity in nuclear power projects.
- The Bill proposes the creation of an independent nuclear safety regulator.
- The Bill replaces the Atomic Energy Act, 1962, with a new comprehensive legal framework.
Select the correct answer using the code given below:
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3
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