What Happened
- The Atomic Energy Commission (AEC) has cleared the FDI policy framework under the SHANTI Act and forwarded it for inter-ministerial consultation
- The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act was enacted by Parliament in December 2025, replacing the Atomic Energy Act of 1962
- The policy review focuses on the extent and conditions for foreign participation in India's nuclear energy sector under the new framework
- The move is part of India's strategy to achieve 100 GW of nuclear power capacity by 2047, up from approximately 8 GW currently operational
- Despite earlier speculation, the Department of Atomic Energy (DAE) has clarified that FDI in atomic energy is currently not permitted; the AEC's cleared framework addresses conditions for potential future FDI
Static Topic Bridges
The Atomic Energy Act, 1962 — A Six-Decade State Monopoly
The Atomic Energy Act, 1962 (Act No. 33 of 1962) established a complete government monopoly over nuclear energy in India. Section 14 of the Act explicitly prohibited any private entity from acquiring, producing, possessing, or using prescribed nuclear substances or atomic energy plants without a licence, and stipulated that such licences could only be granted to government entities. This made Nuclear Power Corporation of India Limited (NPCIL) and Bharatiya Nabhikiya Vidyut Nigam (BHAVINI) the only legally permissible operators of nuclear power plants.
- Act enacted on 15 September 1962; governed nuclear energy for over six decades
- Established the Atomic Energy Commission (AEC) as the apex body for atomic energy policy
- Section 3 gave government exclusive rights over all prescribed substances (uranium, thorium, plutonium, etc.)
- NPCIL incorporated in 1987 under the Companies Act; BHAVINI incorporated in 2003 for fast breeder reactors
- The Civil Liability for Nuclear Damage Act, 2010 (CLNDA) capped operator liability at ₹1,500 crore and total liability at SDR 300 million — a key deterrent to private and foreign investment
Connection to this news: The SHANTI Act repeals both the Atomic Energy Act (1962) and the CLNDA (2010), dismantling the legal foundation of the state monopoly. The AEC is now working on the FDI policy framework that this new law enables.
SHANTI Act, 2025 — New Legal Framework
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 replaces the 1962 Act and creates a new legal architecture for India's nuclear sector. It allows private companies to participate in nuclear plant operations, power generation, equipment manufacturing, and fuel fabrication (including conversion, refining, and enrichment of uranium-235 up to a government-determined threshold). Activities of a "sensitive nature" remain exclusively under government control.
- Parliament passed the Act in December 2025; it replaces the Atomic Energy Act (1962) and CLNDA (2010)
- Provides statutory recognition to the Atomic Energy Regulatory Board (AERB) as an independent safety regulator
- Private sector may participate in plant operations, equipment manufacturing, and fuel fabrication (with thresholds)
- FDI in atomic energy remains prohibited under current law; DAE clarified this in Parliament on December 10, 2025
- Nuclear capacity roadmap: ~22 GW by 2032, ~47 GW by 2037, ~67 GW by 2042, 100 GW by 2047
Connection to this news: The AEC has cleared the FDI policy framework — setting out conditions under which FDI may be allowed in future — and forwarded it for inter-ministerial consultation, a prerequisite before any formal policy change can be notified.
Atomic Energy Regulatory Board (AERB) — Safety Oversight
The Atomic Energy Regulatory Board (AERB) was established in 1983 under Section 27 of the Atomic Energy Act, 1962. It is the national regulatory body responsible for ensuring that the use of ionising radiation and nuclear energy does not cause undue risk to health and environment. The SHANTI Act grants AERB statutory (legislative) recognition for the first time, making it an independent regulator rather than a body formed by government notification alone.
- AERB established: November 15, 1983 (replaced the Atomic Energy (Radiation Protection) Rules body)
- Functions: grants licences to nuclear facilities, prescribes safety standards, enforces regulations
- Previously: functioned under government notification, NOT statutory backing — a long-standing governance criticism
- SHANTI Act elevates AERB to a statutory independent regulator (on par with SEBI, TRAI, etc.)
- India has 8 nuclear power plants with 22 operational reactors (as of 2025); 9 more under construction
Connection to this news: Strengthening AERB's statutory independence is essential to building private sector and investor confidence in safety oversight — a prerequisite for private participation enabled by the SHANTI Act.
India's 100 GW Nuclear Target and Energy Mix
India's nuclear target of 100 GW by 2047 is part of the larger clean energy transition strategy. Nuclear power is classified as a low-carbon baseload source — unlike solar and wind, it provides round-the-clock power without intermittency. The National Electricity Plan (2023-32) and India's updated NDC both reference nuclear expansion as key to decarbonising the electricity grid.
- India's current nuclear capacity: ~8 GW from 22 reactors (as of 2025)
- Nuclear's share of India's power mix: approximately 3% (vs 15% global average)
- India's updated NDC (August 2022): 50% non-fossil electricity by 2030, net-zero by 2070
- Three-stage nuclear programme: PHWRs → FBRs (BHAVINI's Prototype FBR at Kalpakkam) → thorium-based reactors
- India has the world's largest thorium reserves (~25% of global reserves), making thorium-cycle reactors a long-term strategic goal
Connection to this news: Achieving 100 GW by 2047 requires an investment of approximately $200 billion — impossible without private and foreign capital. The SHANTI Act and the FDI policy framework being developed by AEC are the essential policy enablers.
Key Facts & Data
- SHANTI Act enacted: December 2025 (replaces Atomic Energy Act 1962 and CLNDA 2010)
- India's current nuclear capacity: ~8 GW (22 operational reactors)
- Target capacity: 100 GW by 2047
- Nuclear capacity milestones: ~22 GW (2032), ~47 GW (2037), ~67 GW (2042)
- AERB established: November 15, 1983; granted statutory recognition under SHANTI Act
- CLNDA (2010) operator liability cap: ₹1,500 crore; total liability cap: SDR 300 million
- FDI in atomic energy: currently prohibited; DAE clarified this on December 10, 2025
- India's thorium reserves: ~25% of world's total reserves
- NPCIL incorporated: 1987; BHAVINI incorporated: 2003