Source: TH
Subject: Nuclear Energy
Context: The Government of India introduced and rapidly passed the SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Bill in December 2025.
- This transformative legislation repeals the Atomic Energy Act of 1962, allowing private companies to build, own, and operate nuclear plants to achieve a target of 100 GW of nuclear capacity by 2047.
About Transforming India’s Nuclear Power Landscape:
What It Is?
- The transformation involves a fundamental shift from a state-monopoly under the Department of Atomic Energy (DAE) to a liberalized, multi-stakeholder ecosystem. It aims to integrate nuclear energy as a primary baseload power source alongside renewables to achieve Viksit Bharat (Developed India) by 2047 and Net-Zero emissions by 2070.
Data/Stats on India’s Nuclear Landscape:
- Current Capacity: India’s installed nuclear capacity stands at 8,180 MW (approx. 8.8 GW), contributing only 3% of total electricity generation despite representing 1.8% of generating capacity.
- Generation Disparity: In 2024, India’s per capita electricity generation was 1,418 kWh, significantly lower than China (7,097 kWh) and the U.S. (12,701 kWh).
- Operational Base: The Nuclear Power Corporation (NPCIL) manages 24 reactors; the majority are indigenous Pressurised Heavy Water Reactors (PHWRs).
- Cost Efficiency: India’s indigenous 700 MW PHWR construction cost is million per MW, which is among the lowest globally.
Need for Transforming the Nuclear Landscape:
- Viksit Bharat Goals: To reach developed nation status, India needs to grow its electricity generating capacity to over 2,000 GW.
- Baseload Stability: Unlike solar and wind, which are intermittent, nuclear provides a steady baseload required for heavy industries like steel and cement.
- Land Scarcity: Renewables are roughly 10 times more land-intensive than nuclear power plants, making nuclear more viable for a land-stressed country like India.
- Decarbonization: Achieving Net-Zero by 2070 requires moving away from coal-based thermal power (currently 75% of generation) toward low-carbon nuclear energy.
- Capital Requirements: Adding 90 GW of capacity requires an outlay of billion (₹18 lakh crore), a sum that necessitates private and foreign investment beyond government budgets.
Initiatives Taken:
- SHANTI Act (2025): Replaced the 1962 Act to allow private participation and revised the liability framework to encourage investment.
- Statutory Status for AERB: The Atomic Energy Regulatory Board has been granted statutory status to ensure independent and transparent regulation.
- Small Modular Reactors (SMRs): The government allocated ₹20,000 crore to R&D for five indigenous SMR models (5 MW to 200 MW) for captive industrial use.
- Fleet Mode Implementation: Approval for building ten 700 MW reactors in fleet mode to gain economies of scale and reduce construction timelines.
Challenges Associated:
- High Upfront Costs: Nuclear plants require massive initial capital investment, even if operating costs remain low over their 60-year lifespan.
- Safety & Liability: Concerns regarding the Civil Liability for Nuclear Damage Act (CLNDA) have historically deterred foreign technology suppliers like GE and Westinghouse.
- Land Acquisition & Regulation: Current exclusion zone regulations for large plants are not suited for single-unit captive reactors in industrial hubs.
- Technological Indigenization: Foreign designs (French EdF or U.S. Westinghouse) are expensive ( million/MW) and need significant indigenization to be cost-effective.
- Waste Management: Creating a transparent and safe framework for long-term nuclear waste disposal remains a significant public and environmental concern.
Way Ahead:
- Private-Public Partnerships: Develop clear rules for the build-own-operate model to ensure private sector confidence in fuel ownership and waste management.
- SMR Modularization: Adapt the proven 220 MW PHWR design into a modular format for quick deployment (within 40 months) for data centers and heavy industry.
- Thorium Exploitation: Accelerate R&D into Thorium cladding with HALEU to utilize India’s vast thorium reserves without waiting for the complex Breeder Reactor route.
- Regulatory Independence: Ensure the AERB functions with total autonomy from the DAE to build public trust and ensure international safety standards.
- Financing Models: Work out innovative green-financing and insurance pools to mitigate the risks associated with high-capital nuclear projects.
Conclusion:
The SHANTI Act marks a paradigm shift by breaking the decades-old state monopoly on nuclear power, aligning India’s energy policy with its 2047 economic ambitions. Success will depend on moving from legislative intent to the nuts and bolts of implementation—specifically in creating a transparent, safe, and commercially viable environment for private players.
