India’s nuclear push: What SHANTI Act draft rules say on insurance and operator liability
The Department of Atomic Energy has released the draft rules under the SHANTI Act which aims to facilitate greater private investment in the sector
India is set to significantly boost its nuclear energy program, with plans for five new reactors this decade and a target of 100 GW capacity by 2047. The recently enacted SHANTI Act opens doors for private investment in building, owning, and operating nuclear power plants, alongside research and development. This strategic push also includes the development of Small Modular Reactors (SMRs), aiming to enhance energy security and self-reliance with a cleaner power source.
India is set to significantly boost its nuclear energy program, with plans for five new reactors this decade and a target of 100 GW capacity by 2047. The recently enacted SHANTI Act opens doors for private investment in building, owning, and operating nuclear power plants, alongside research and development. This strategic push also includes the development of Small Modular Reactors (SMRs), aiming to enhance energy security and self-reliance with a cleaner power source.
India is set to significantly boost its nuclear energy program, with plans for five new reactors this decade and a target of 100 GW capacity by 2047. The recently enacted SHANTI Act opens doors for private investment in building, owning, and operating nuclear power plants, alongside research and development. This strategic push also includes the development of Small Modular Reactors (SMRs), aiming to enhance energy security and self-reliance with a cleaner power source.
Prime Minister Narendra Modi, in his Independence Day address on Saturday, announced that India aims to start five new nuclear reactors within this decade. He also reiterated the target of achieving 100 GW of nuclear power capacity by 2047, underscoring the role of nuclear energy in strengthening the country’s energy security and self-reliance.
Modi congratulated the scientists involved in the 500 MWe Prototype Fast Breeder Reactor (PFBR) at Kalpakkam in Tamil Nadu, which attained first criticality in April this year. He also highlighted the government’s nuclear-sector reforms, including the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act.
A day before the Prime Minister’s speech, the Department of Atomic Energy released the draft rules under the SHANTI Act, enacted in December 2025 to expand the nuclear sector and facilitate greater private investment. The Act replaced the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.
The new law allows private companies to participate in a wider range of peaceful nuclear activities, including the building, owning and operating of nuclear power plants, as well as research and development in nuclear science and technology.
Key provisions of the draft SHANTI rules
Insurance and financial security: Nuclear plant operators will be required to maintain insurance, financial security, or a combination of both to meet liabilities arising from nuclear damage.
Security until spent-fuel removal: The financial security must remain in place until all spent fuel has been removed from the concerned storage pool.
Review of operator liability: The Centre will constitute an expert group once every five years to review the maximum civil liability limits applicable to nuclear operators.
Approval of foreign reactor designs: For reactors based on foreign designs, the design must be certified or approved by the regulatory authority in the country of origin. The draft rules define the 'country of origin' as one that has an established, self-reliant nuclear reactor design and supply-chain ecosystem, with regulatory approvals that are globally trusted.
In-principle approval: The licensing authority may grant an in-principle approval even when the applicant has not yet finalised the site or reactor technology. Once such approval is granted, the applicant can begin negotiations with reactor technology vendors and proceed with acquiring land and developing other necessary infrastructure.
Single composite licence: A single composite licence will cover the construction, ownership, operation and decommissioning of a nuclear power plant or reactor.
The SHANTI Act comes as India seeks to significantly expand the role of nuclear energy in its power mix. The government’s Nuclear Energy Mission, announced in the Union Budget 2025–26, targets 100 GW of nuclear power capacity by 2047.
The mission includes an allocation of Rs 20,000 crore for the design, development and deployment of Small Modular Reactors (SMRs), signalling a long-term push to develop indigenous nuclear technologies.
As part of this effort, the government has set a target of having at least five indigenously designed SMRs operational by 2033. Together with the expansion of conventional nuclear power, the initiative is intended to provide India with a larger source of reliable, low-carbon electricity while reducing its dependence on imported energy.