In a sweeping legislative reform on Wednesday, the Lok Sabha approved the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025, signaling a transformative shift in India’s nuclear energy sector. The bill repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, consolidating them into a comprehensive, modern legal framework to support India’s expanding energy needs and climate goals.
The bill’s passage came amid a walkout by the INDIA alliance opposition.
Introduced by Minister of State for Science and Technology Jitendra Singh, the bill marks a significant modernisation of India’s nuclear governance, reflecting the country’s drive towards nuclear self-sufficiency and a target of achieving 100 gigawatts of nuclear power capacity by 2047 as part of its broader 2070 decarbonization objective.
A pivotal aspect of the legislation is ending the decades-long state monopoly, opening the nuclear sector to private players such as Adani, Tata Group, Jindal, Reliance, Vedanta, and NTPC. These firms are already engaging with international nuclear companies from Europe, Russia, and the United States, heralding increased domestic and foreign investment under a regulated regime.
The Union Cabinet previously approved the Shanti Bill, enabling private entities to build, own, and operate nuclear power plants, ending exclusive control by the Nuclear Power Corporation of India Ltd (NPCIL). Private investors may hold up to 49 per cent equity in projects, with NPCIL maintaining strategic control. Foreign participation through joint ventures with Indian companies will also be permitted, subject to national security clearances.
The legislation promotes innovation through public-private partnerships in Small Modular Reactors (SMRs) and indigenous Bharat Small Reactors, backed by a government commitment of Rs 20,000 crore for R&D. Officials aim to commission at least five indigenous SMRs by 2033 to provide reliable power for energy-intensive sectors like steel, cement, and data centres.
Additionally, the bill introduces a revised nuclear liability framework that caps supplier liabilities, shifting more responsibility to plant operators. This pragmatic approach addresses previous foreign investor concerns and aligns India’s liability norms with global standards.
Enhanced safety and environmental protections include mandatory impact assessments, strict waste management, and clear licensing protocols, while research activities are exempt from licensing to encourage technological progress.
New institutional bodies, including the Atomic Energy Redressal Advisory Council and Nuclear Damage Claims Commission, will strengthen oversight, accountability, and public protection.
This landmark legislation firmly places nuclear energy at the core of India’s clean energy future, promoting growth, energy security, and economic development while maintaining rigorous safety and environmental standards. It marks a decisive departure from Cold War-era restrictions, opening the sector to innovation and international collaboration.