Atomic juncture

A new comprehensive law opens up the nuclear sector to private players, while diluting disaster liability and safety provisions

- PUJA DAS, NEW DELHI

IN THE first week of January came a slew of media reports stating that the National Thermal Power Corporation (NTPC) Limited, a state-owned company, has inked agreements with foreign firms to explore collaborations for nuclear power projects in India. These include Russia's Rosatom, France's Électricité de France SA (EDF) and the US' Clean Core Thorium Energy. Reports of the deals in such quick succession can be attributed to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025, or SHANTI Act, passed by the Parliament in December.

The legislation repeals the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, ending the state's monopoly over nuclear power generation and opening the sector to private and foreign participation for uranium mining, reactor construction, operation, equipment manufacturing and other aspects of the nuclear fuel cycle, subject to licensing and regulatory oversight.

Union Minister of State (Independent Charge) for Science and Technology Jitendra Singh termed the Act as a historic reform that will “unlock nuclear potential for peaceful, clean, and sustainable energy while maintaining uncompromising standards of safety, sovereignty, and public interest.” The Act furthers the Centre’s intent to enhance nuclear power in the energy mix, as a cleaner power source. It is aligned with the Nuclear Energy Mission, announced in the Union budget for 2025-26, which targets 100 gigawatts (GW) of installed nuclear capacity by 2047.

Nuclear power has so far been the preserve of public sector entities like the Nuclear Power Corporation of India Ltd (NPCIL). The Act will allow foreign direct investments up to 49 per cent, with private players able to forge partnerships, joint ventures and play manufacturing roles. NPCIL will retain operational control over sensitive aspects in the fuel cycle.