Draft rules issued under the SHANTI Act
Key Highlights
- India has moved closer to allowing private investment in nuclear power generation.
- The Department of Atomic Energy has issued draft rules under the SHANTI Act, 2025.
- The reforms aim to attract private firms and investment into the nuclear sector.
- India plans to start five nuclear reactors within six to seven years.
- Public feedback on the draft rules has been invited until September 4.
- Nuclear plant operators will need insurance, financial security or a combination of both.
- Financial security must remain in place until spent fuel is removed from the relevant storage pool.
- The Centre will review the maximum civil liability limits for nuclear damage every five years.
New Delhi, August 15: India has moved a step closer to opening its nuclear power sector to private investment after the Department of Atomic Energy issued draft rules aimed at implementing recent changes to the country’s nuclear energy framework.
The proposed rules could mark a major shift in India’s nuclear power industry, which has historically been dominated by the public sector. The move comes around eight months after the country’s nuclear laws were overhauled to make the sector more attractive to private firms and investors.
The draft rules have been issued under the Sustainable Harnessing and Advancement of Nuclear Energy (SHANTI) Act, 2025.
Private Investment in Nuclear Power
The proposed framework is designed to create a regulatory structure for greater private participation in nuclear power generation.
Prime Minister Narendra Modi also highlighted India’s nuclear ambitions in his Independence Day address, with the government looking to expand nuclear capacity and bring new investments into the sector.
The draft rules are part of that broader effort to increase nuclear power generation and support India’s long-term energy requirements.
The government is aiming to start five nuclear reactors within the next six to seven years, according to the draft framework.
Financial Security for Nuclear Operators
One of the key provisions concerns the financial security that nuclear plant operators will have to maintain.
Operators will be required to maintain an insurance policy, financial security or a combination of both to cover potential nuclear damage liabilities.
The financial security will have to remain in place until all spent fuel has been removed from the relevant storage pool.
The rules are intended to ensure that financial protection remains available throughout the period in which nuclear operators may face liabilities associated with their facilities.
Liability Limits to Be Reviewed
The draft rules also provide for periodic review of the maximum civil liability limits applicable to nuclear operators.
The Centre will constitute a group of experts once every five years to review these limits for nuclear damage.
This mechanism is intended to ensure that the liability framework remains relevant as the country’s nuclear industry expands and operating conditions change.
Public Feedback Invited
The Department of Atomic Energy has invited members of the public and other stakeholders to provide feedback on the draft rules.
Comments and suggestions can be submitted until September 4.
The consultation process will allow stakeholders to review the proposed framework before the rules are finalised.
Major Shift for India’s Nuclear Sector
The proposed regulations represent an important step in India’s plan to expand nuclear energy while bringing private capital and expertise into the sector.
If implemented, the framework could create new opportunities for private companies and investors while establishing financial and liability safeguards for nuclear plant operations.
The government’s broader objective is to increase nuclear power generation as part of India’s long-term energy strategy and reduce dependence on conventional energy sources while supporting growing electricity demand.
