The United States has swiftly welcomed a landmark Indian law that reshapes the nation’s nuclear energy landscape. Hours after President Droupadi Murmu gave assent to the SHANTI Bill on Monday, the US Embassy stated it was “a step towards a stronger energy security partnership and peaceful civil nuclear cooperation,” adding that America stands ready for “joint innovation and R&D.”
What is the SHANTI Act?
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act is a transformative piece of legislation. It repeals and replaces older laws like the Atomic Energy Act of 1962, creating a unified legal framework for the civil nuclear sector. Its most significant change is ending the state’s monopoly on nuclear power generation.
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How Does This Change India’s Nuclear Sector?
For decades, the nuclear power sector belonged only to government institutions such as the Nuclear Power Corporation of India (NPCIL). Under firm regulation from the Atomic Energy Regulatory Board, private players are now allowed to participate in multiple roles, including power generation, equipment production, and even plant operations across the country today.
We welcome India’s new #SHANTIBill, a step towards a stronger energy security partnership and peaceful civil nuclear cooperation. The United States stands ready to undertake joint innovation and R&D in the energy sector. pic.twitter.com/ja0vCAhPzt
— U.S. Embassy India (@USAndIndia) December 22, 2025
Why is Foreign Direct Investment (FDI) a Key Factor?
A critical provision within the new law permits up to 49% Foreign Direct Investment in certain nuclear sector activities. This move is strategically crucial. It is intended to draw in much-needed funding, speed up R&D, and expedite international partners’ adoption of cutting-edge nuclear technologies.
What Are India’s Nuclear Energy Goals?
The government views this reform as essential for its clean energy transition and a specific, ambitious target: achieving 100 gigawatts of nuclear capacity by 2047. This is a massive leap from the current capacity of about 8.78 gigawatts. The immediate roadmap aims to reach over 22 gigawatts by 2031-32 through indigenous and internationally cooperative reactor projects.
What Does the US Statement Really Mean?
The US welcome is more than diplomatic courtesy. By specifically highlighting “joint innovation and R&D,” it signals a desire to move beyond general cooperation into concrete technological and research partnerships. The act establishes the legal framework for such US-India partnerships in the nuclear energy sector by permitting private sector and foreign participation.
Immediate FAQs
Q: Can private companies now build and own nuclear power plants in India?
A: Yes. Through the SHANTI Act, private participation is permitted in power generation and plant operations, subject to regulatory licensing and oversight.
Q: How much foreign investment is allowed?
A: The law permits up to 49% of foreign direct investment (FDI) in specific nuclear industry operations.
Q: What happens to the old nuclear liability law?
A: The SHANTI Act subsumes the Civil Liability for Nuclear Damage Act of 2010, along with the 1962 Act, into one new, comprehensive law.
Q: What is the main goal of this new law?
A: To boost India’s nuclear capacity, attract investment and technology, and help the country reach its 2047 nuclear capacity goal of 100 GW and clean energy.
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